USA: U.S. Air Force picks Northrop Grumman to rebuild a new aerial refueling fleet
Record ID:
183920
USA: U.S. Air Force picks Northrop Grumman to rebuild a new aerial refueling fleet
- Title: USA: U.S. Air Force picks Northrop Grumman to rebuild a new aerial refueling fleet
- Date: 1st March 2008
- Summary: (BN01) PENTAGON, ARLINGTON, VIRGINIA, UNITED STATES (FEBRUARY 29, 2008) (POOL) AIR FORCE SECRETARY MICHAEL WYNNE AND VICE CHIEF OF STAFF OF AIR FORCE GENERAL DUNCAN J. MCNABB WALKING INTO BRIEFING ROOM (SOUNDBITE) (English) AIR FORCE SECRETARY MICHAEL W. WYNNE SAYING: "Ladies and gentlemen, we are pleased to announce that the development and procurement of up to 179 new KC-45A tanker aircraft is awarded to Northrop Grumman Corporation. We look forward to partnering with them as we continue to defend our great nation in the future." WYNNE WALKS AWAY FROM PODIUM, MCNABB STEPS UP TO PODIUM (SOUNDBITE) (English) VICE CHIEF OF STAFF OF AIR FORCE GENERAL DUNCAN J. MCNABB SAYING: "As Secretary Wynne stated, this is not just a great day for our air force. It is also a very significant day for our joint team, our nation, and our coalition friends and allied partners. The American people expect and rely on their Air Force to hold any target around the world at risk and respond to any crisis in hours. The KC-45 built by Northrop Grumman will provide our nation and partners the critical ability to reach across the globe and project our combat capability or our humanitarian friendship, rapidly and effectively."
- Embargoed: 16th March 2008 12:00
- Keywords:
- Location: Usa
- Country: USA
- Topics: Industry,Defence / Military
- Reuters ID: LVA5W9JINKWA2HV71SIFKQFAH5FR
- Story Text: The U.S. Air Force has picked a Northrop Grumman-led transatlantic team over rival Boeing Co to start building a new aerial refuelling fleet in a major upset, The plane offered by Northrop Grumman Corp and its European partner, Airbus parent EADS, outperformed Chicago-based Boeing's aircraft in four of five areas, and matched it in the fifth.
The deal was announced Friday afternoon (February 29) at the Pentagon.
"The American people expect and rely on their Air Force to hold any target around the world at risk and respond to any crisis in hours. The KC-45 built by Northrop Grumman will provide our nation and partners the critical ability to reach across the globe and project our combat capability or our humanitarian friendship, rapidly and effectively," said Air Force Vice Chief of Staff, General Duncan McNabb.
The winner-take-all deal is to supply 179 tanker aircraft, valued at $30 billion to $40 billion over the next 15 years. The aircraft will phase out Eisenhower-era KC-135 tankers built by Boeing.
Northrop shares initially shot up more than $5 in after-hours trading on the New York Stock Exchange to $83.75 per share while Boeing slumped by nearly $3 to $80 per share.
The program marks the first stage of a multi-decade plan to replace more than 500 KC-135 tankers used to extend the range of fighter jets and other warplanes.
With follow-on orders and in-service maintenance, it could be the second costliest military purchase over decades, topped only by Lockheed Martin Corp's F-35 Joint Strike Fighter.
Future phases of the purchase could bring the cost of the entire fleet to more than $100 billion, although the winner of this competition is not assured of winning future ones, Air Force officials have said.
Boeing's KC-767 had been widely predicted to win the initial contract, partly because it had a greater amount of U.S. domestic production compared with the Northrop-EADS candidate, based on the Airbus A330 commercial airliner.
The Air Force calls the new tanker fleet its top acquisition priority.
In 2004, the U.S. Congress killed an earlier $23.5 billion Air Force plan to lease and then buy 100 modified Boeing 767 tankers amid a Pentagon procurement scandal brought to light chiefly by Sen. John McCain of Arizona, the all-but certain Republican nominee for U.S. president. - Copyright Holder: POOL (CAN SELL)
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