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EADS Claims Able to Lower Price on Offer This Time Around

With the submission of their second proposal for the KC-X aerial tanker program EADS (EADS:P) stated that due to production increases they were able to lower the price on their KC-30 tanker aircraft. Chairman of EADS North America, Ralph Crosby, said by about six percent.

EADS and Boeing (BA) are trying for a second time to win the new tanker for the U.S. Air Force that will replace the aging KC-135R aircraft. In 2008 EADS which was teamed with Northrop Grumman (NOC) won the last contest which was overturned on protest by Boeing. The two companies submitted their final proposals last week.

Boeing has not provided such details but has previously stated that their smaller KC-767 aircraft has better fuel efficiency and maintenance costs that will save the Air Force money over the long run.

In recent testimony the Secretary of Defense, Robert Gates, indicated that the award announcement will be made in a few weeks following up on the Air Force’s budget document which indicated prior to April 1st.

Read the original post here.

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