Officials Threaten to Block Tanker Funds

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Congressman Todd Tiahrt (R-Kan.) said that he is opposed to the team of Northrop Grumman Corp. and European Aeronautic, Defence & Space Co. winning a $35 billion Air Force tanker deal because of its potential impact on domestic jobs and national security.


Tiahrt told Bloomberg News late Wednesday that there is a possibility that Congress will block funding for the program.


This comes after members of Connecticut’s congressional delegation formally requested a briefing with the Air Force over the tanker contract.


Had Boeing won the deal, as expect. Pratt & Whitney would have built the engines for the 600 tankers and Hamilton Sundstrand would have worked on the electrical systems. Both companies are based in Connecticut.


In a letter sent to Air Force Secretary Michael Wynne Wednesday, the lawmakers expressed concern that the award did not consider the U.S. jobs that would be affected. They also said the Air Force did not take into account the subsidies from European governments to its aerospace industry, which puts the U.S. contractors at a disadvantage.


Speaking at a Senate Armed Services Committee hearing Wednesday, Wynne said that the plan offered by Los Angeles-based Northrop and EADS “was clearly a better performer.”


While much of Northrop’s planes will be built in Europe, the Northrop-EADS venture plans to use hundreds of U.S. suppliers and it will conduct the final assembly in the United States, supporting 25,000 American jobs, the companies have said. The first planes are expected to enter service in 2013.


Shares in Northrop were down 33 cents to $79.98 in early trading Thursday on the New York Stock Exchange.

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