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Monday 10 March 2008

US AIR FORCE AWARDS CONTRACT TO EUROPEAN FIRM

None of us, I am sure, are surprised that the United States Air Force's decision to award a huge US Air Force contract to the European Firm EADS is being challenged by the US Congress. The American lawmakers are concerned that Boeing is missing out on a deal to supply air tankers worth about £20 billion, one of the largest in the past 20 years. Congress now wants the USAF to explain itself.

Parts for the air tankers, including the wings, will be built in the UK by Airbus. However, the assembly work will be carried out in the United States, where the project will create or support 25,000 jobs. The USA is therefore not really missing out too much. And maybe the European bid was quite simply better.

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