LONDON, Nov. 12 (UPI) -- The Boeing Co. and Britain's BAE Systems have reportedly signed an agreement giving BAE more than $670 million of work on all future 767 manufacturing.
The Financial Times (London) said Wednesday the agreement is contingent on Britain's Royal Air Force selecting the aircraft for a new air-to-air refueling fleet.
The total value of the deal could be as much as $3 billion for Britain's BAE if the U.S. Air Force decides to replace all its ageing tankers with 767s.
The Financial Times said the Boeing-BAE consortium is locked in a bitter battle with the European Airbus consortium over the $22 billion RAF contract, which is to be awarded next month and will be the largest private financing initiative deal in the British defense ministry's history.
The agreement would give BAE manufacturing responsibility for the leading edges of all new wings for future 767s built by Boeing, both for military and commercial customers.
