EADS close to conceding Air Force tanker contract

By Jolie Lee
Federal News Radio

EADS is close to conceding its loss of the $35 billion Air Force KC-X tanker award to Boeing on Feb. 25.

Reuters reports that EADS parent company Airbus could announce its decision not to protest as early as Friday.

“Most likely there will be no appeal,” Reuters quoted one source familiar with internal discussions at EADS, who was not authorized to speak publicly.


EADS has until March 7 to decide whether or not to protest the tanker award.

The Air Force briefed EADS Monday on its decision to award the contract to Boeing.

When announcing the award, Pentagon leaders had said Boeing and EADS met all the mandatory requirements for the contract. But because the difference in price between the two bids was greater than 1 percent of the total, cost essentially was the deciding factor.

The Associated Press contributed to this story.