Thursday, May 13, 2010

Bill would add to cost of EADS bid

Lawmakers who support Boeing's bid to build tankers for the Air Force introduced legislation today that would require the Pentagon to add the value of government subsidies to a competing proposal from EADS. It would amount to $5 million per plane. Boeing wants to build tankers based on the 767, and EADS wants to build modified A330s. The Pentagon won't consider the WTO ruling in part because of the appeals process, in part because of a counter complaint by the European Union against Boeing. The bill is co-authored by Rep. Todd Tiahrt and Sen. Sam Brownback, both of Kansas, where Boeing has manufacturing facilities. The legislation has about 20 supporters in the House and four in the Senate, the two politicians said. (Source: Bloomberg, 05/13/10) Gulf Coast note: EADS wants to assemble its tankers in Mobile, Ala.