Northrop Grumman and EADS have somehow managed to defeat heavy-favorite Boeing in the battle to replace the Air Force's aging fleet of aerial refueling tankers. The initial contract for 80 aircraft is valued at $40 billion, and the service has plans to purchase as many as 100 more at an as yet undetermined cost.
The Northrop KC-30, which is based on the EADS Airbus A-330 passenger jet, had been considered the more capable aircraft. It's bigger, which means it can carry 20 percent more fuel, 20 percent more passengers, and 30 percent more cargo. It can also carry 45,000 pounds more fuel than Boeing's KC-767. But Boeing had pitched the smaller size of the 767 as a feature, rather than a handicap. However, the 767 is at the end of its commercial life. The military would have been the only customer for the airplane had Boeing won the contract, raising concerns about maintenance costs.
The KC-30 will be assembled in Mobile, Alabama, but much of the work will be done in Airbus's facility in Toulouse, France. There had been doubts as to whether the Air Force, and Congress, would award such a massive contract to a French firm, but a thaw in relations following the election of Nicolas Sarkozy may have eased concerns. Also Northrop claims that its aircraft will create 25,000 American jobs.
The Air Force's tanker acquisition program first received national attention in 2001, when Senator John McCain called into question a no-bid contract that would have seen the service lease, rather than buy, 100 tankers from Boeing. Upon further investigation, it became clear that Boeing had offered illegal inducements to Air Force officials in exchange for the contract. The ensuing scandal led to jail sentences for two Boeing officials, including the firm's CFO.
McCain has repeatedly noted his role in exposing the corrupt deal during this year's presidential election.
