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Foreign Aerospace Company EADS Considering Tanker Bid; Would Have Access to US Technologies

by associate on March 19, 2010

Source: “EADS Mulls New Tanker Bid” – March 19, 2010, AP

Foreign owned aerospace and defense company EADS said it is considering a new bid for a $35 billion Pentagon contract for midair refueling tankers The Defense Department “indicated it would welcome a proposal from EADS North America as prime contractor for the KC-X tanker competition”

Tim Keating, Senior Vice President of Boeing’s Washington operations, has pointed out that if the France-based Airbus, wins the tanker competition, the European governments that own the company could direct it to withhold supplies of parts in the event of a policy dispute with the U.S..  Additionally, EADS would be granted access to sensitive communications technology, the first time a foreign contractor would be privileged to such developments. Previously, foreign companies were only allowed to be subcontractors due to these exact security risks. This development sets a precedent allowing all foreign subcontractors or prime contractors access to US communications technology, posing a major risk to US security.

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