EADS to enter tanker battle

EADS North America announced today that it intends to submit a proposal by July 9 for the U.S. Air Force's tanker program and will offer the KC-45. EADS is in discussions with potential U.S. partners. Reuters first reported Monday that EADS would likely submit a bid, and the company confirmed it today. EADS said that in addition to the tankers, it plans to build and modify A330 commercial freighters at a site in Mobile, Ala. The tanker will be competing against the Boeing 767, a smaller aircraft, for the $40 billion contract. EADS' former partner, Northrop Grumman, dropped out of the competition on grounds the Air Force request for proposals favored the smaller tanker. (Source: EADS, 04/20/10)