Pentagon tanker study opens door for Airbus

WASHINGTON — The European company Airbus SAS would be allowed to compete for a multibillion-dollar Air Force contract that Boeing Co. has held for decades, under a study of options for buying new refueling planes.

Rep. Norm Dicks, D-Wash., who was briefed on the still-classified report, said it calls for the Air Force to convert commercial aircraft similar to those built by Airbus and Chicago-based Boeing into tankers that refuel planes in flight.

Dicks, a senior member of the House Appropriations Defense subcommittee, said a number of Boeing and Airbus aircraft would probably meet the Air Force requirements.

The congressman, whose district includes thousands of Boeing workers, said it was unfortunate that the study made no definitive conclusions about the timing of the tanker replacement program, which has been delayed by an ethics scandal involving Boeing and the Air Force.

Given the age of the existing fleet — which averages about 45 years — “starting the replacement of these tankers as quickly as possible must be a priority for Defense Department in the near future,” Dicks said in a statement.

He released the statement after being briefed Thursday night on the report, which was conducted largely by the Rand Corp.

The study, called an Analysis of Alternatives, recommends that the Pentagon weigh other factors besides economics to determine how quickly to solicit bids, Dicks said. It appears to back a defense bill signed by President Bush that would allow open competition for the multibillion-dollar tanker contract.

An earlier bill approved by the House would have barred the Pentagon from purchasing goods and services from foreign companies that receive government subsidies. While no companies were named, lawmakers said the amendment was aimed at disqualifying Airbus’ parent company from bidding on the tanker contract.

Airbus, which is 80 percent owned by the European Aeronautic Defense and Space Co., has long received subsidies from European governments, sparking tension between U.S. and European officials.

Boeing lost the tanker deal in 2004 amid revelations that it had hired a top Air Force acquisitions official who later admitted giving the company preferential treatment.

The deal would have allowed the Air Force to buy or lease 100 Boeing 767 planes for use as tankers, but was killed by Congress. The Air Force has said it is likely to reopen the deal to competition, but no formal timeline has been set.

EADS, which is based in France and Germany, has said it plans to team with Los Angeles-based Northrop Grumman Corp. to produce a new generation of refueling tankers. The contract could be worth at least $20 billion.

A spokesman for EADS deferred comment Friday to Northrop Grumman, which said it had not yet seen the analysis of alternatives or been briefed on it. Boeing officials also said they had not seen the report. The Air Force and Defense Department declined to comment, citing the report’s classified status.

Both Northrop Grumman and Boeing said they were looking forward to a fair and open competition.

“We’re prepared to offer a full range of potential tankers that will meet the Air Force requirements, whether it’s big or medium or whatever size they are looking for,” said Bill Barksdale, a Boeing spokesman.