Boeing landed a $35 billion contract from the Defense Department for a aerial refueling tanker, after a decade-long battle between the U.S.-based aircraft manufacturer and Europe's largest aerospace company, European Aeronautic Defence and Space (EADS). The contract, which will provide an estimated 50,000 jobs, is one of the biggest in history. "Boeing was a clear winner," Deputy Defense Secretary William J. Lynn III said at a brief Pentagon news conference announcing the decision. The first 18 of 179 planes, to be called KC-46A tankers, are to be delivered by 2017. Considerations in the award, Lynn said, were "warfighting requirements, price and life-cycle costs." The entire refueling fleet is expected to be replaced over the next 10 to 20 years through second and third contracts for a total of up to $100 billion.
"This great news for Washington State which will be the main production center for the new tanker and maintain the state's aerospace and defense cluster at the forefront of global competition," commented Egils Milbergs, executive director, Washington Economic Development Commission.
Gov. Chris Gregoire issued the following statement:
"What a great day for The Boeing Company, and for the 11,000 aerospace workers in Washington state alone that will play a role in assembling the NewGen tanker. Following an open, transparent process, the Department of Defense realized what I've been saying all along – and that is that Boeing has designed the safest, most cost-effective tanker to serve both our military and our taxpayers well.
"I commend The Boeing Company for its determination and tremendous work to land this contract. This was an arduous process, and Boeing deserves our praise for its commitment to its workforce, as well as the men and women that serve in the U.S. Air Force.
"I also thank my fellow governors that joined with me as I launched the U.S. Tanker Coalition, as well as our state's Congressional delegation. We've spent the last year advocating on behalf of Boeing – ensuring our federal and military leaders understood the advantages of an American-made tanker, made by the best manufacturer of airplanes in the world. Our military, our national security, our economy and the 50,000 workers nationwide who are impacted by this decision are better off following this announcement – and for that, we should all be proud."
Air Force awards Boeing $35B contract
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