EADS may rebid for U.S. tanker planes

WASHINGTON, March 19 (UPI) -- European aerospace giant EADS is poised to present a revised bid to build a multibillion aerial-refueling fleet for the U.S. Air Force, provided the Pentagon gives the firm a fair chance at winning the contract.

The announcement, the latest twist in a near decadelong saga, comes a week after the firm pulled out of the contest, accusing the Pentagon of revising requirements to suit the competing bid of Boeing.

The $35 billion contract concerns the supply of 179 tanker planes to the U.S. Air Force.

Northrop Grumman Corp and EADS, the parent company of Airbus, had beat Boeing in a similar race two years ago. But their winning bid was annulled after government auditors found that the Air Force has skewed its judgment rules.

The annulment sparked a diplomatic fracas with senior European officials berating the United States for what they billed as an act of protectionism.

This week, however, the Pentagon said it was considering an extension of the bids deadline, allowing EADS to pitch a fresh offer.

"We're considering that request," Bryan Whitman, a department spokesman, told reporters at the Pentagon. The present deadline is May 10.

EADS insists, however, that the Pentagon, also revise its bidding requirements.

"This is a significant development. EADS is assessing this new situation to determine if the company can feasibly submit a responsive proposal to the department's request for proposal," a company statement said.

"An important pre-requisite for our consideration of entry into this competition will be a significant extension to the period within which to prepare and submit a proposal," EADS said.

Should EADS proceed, its North American unit will most like bid on its own or search to find a partner after Northrop pulled out.

It was not immediately clear how long an extension EADS had been given to submit its new bid to the Pentagon.

Still, in comments to U.S. media, EADS Chief Executive Officer Louis Gallois said his firm would be unable to produce a revised bid within a 60-day time line.

The EADS plane tanker A330 MRTT can load and carry more refueling supplies and travel over a greater distance that its Boeing 776-based rival. What's more, a review by the U.S. Air Force in 2008 stated clear preference for the EADS model.

The Airbus model has been chosen over Boeing 767 derivatives as a tanker by Australia, Britain, the United Arab Emirates and Saudi Arabia in the four most recent contests, EADS said.