US fury grows over EADS deal
By Demetri Sevastopulo in Washington, Sylvia Pfeifer in,London and Hal Weitzman in Chicago
Published: March 6 2008 02:00 | Last updated: March 6 2008 02:00
http://www.ft.com/cms/s/0/d118fe84-eb1e-11dc-a5f4-0000779fd2ac.htmlAt a Congressional hearing on the decision, John Murtha, the powerful Democratic chairman of the appropriations defence committee, said Congress could block the purchase of the 179 tankers if the air force's explanation for its decision was unsatisfactory.
"The political implications are important," said Mr Murtha. "All this committee has to do is stop the money and this programme is not going forward.''
The air force decision stunned analysts, who expected Boeing, which has supplied the US military with refuelling tankers for five decades, to win the competition. The deal could ultimately be worth more than $100bn as the air force replaces its entire tanker fleet of about 600 aircraft.
Hillary Clinton and Barack Obama, the two Democratic White House contenders, have criticised the deal along with Nancy Pelosi, the House Democratic speaker, and Harry Reid, the Senate Democratic majority leader. John McCain, the Republican presidential nominee who led the Congressional investigation into the original Boeing deal, said he hoped the air force had conducted a fair competition.
In announcing the decision last week, senior air force officials said EADS and Northrop had offered a better aircraft capable of carrying more fuel, more cargo and more passengers.
However, Jim Albaugh, chief executive of Boeing's integrated defence systems unit, yesterday suggested Boeing had been misled by the air force, adding that the company could have offered a larger aircraft, the 777, had it understood that was an important concern.
Mr Albaugh said there was a "disconnect" between the comments by General Arthur Lichte, head of US Air Mobility Command, and the way Boeing read the brief sent out by the air force. "The
was never about the biggest airplane, who could haul the most cargo . . . the most gas," said Mr Albaugh.