EADS contract

The Pentagon announced on Wednesday it is willing to extend the deadline to allow more time for European aerospace giant EADS to participate in the bidding for a contract to supply US refuelling tanker planes.

"If we receive formal notification from EADS of their intention to make an offer, we will extend the deadlines for bids from May 10 to July 9," Pentagon spokesman Geoff Morrell said at a press conference. The move would provide an additional 60 days for both EADS and its US rival, Boeing

A spokesman for EADS in North America said in a statement that the company would consider the department's offer, but did not say whether EADS would submit a bid.

Airbus's parent company, EADS had previously requested the 90-day extension after its partner Northrop Grumman withdrew from the bidding, leaving American competitor Boeing as the sole bidder for the contract valued at $35 billion.

Competition critical

A bid by the European aerospace giant would help the US Defense Department avert criticism that the bidding for the 179 tankers was non-competitive.

"A sole-sourced contract would have served only Boeing's interests," said US Senator Richard Shelby, whose home state of Alabama stands to benefit from EADS plans to build a plant in the city of Mobile.

The contract to replace the ageing fleet of refuelling tankers has been a heated issue in recent months, with European tempers flaring over what critics saw as American protectionism.

The Northrop- EADS team was originally awarded the contract in February 2008, but the deal was withdrawn after Boeing successfully appealed the decision.

If EADS does submit a bid, the winner of the contract is expected to be announced in the fall.

smh/dpa/AFP
Editor: Rob Turner