EADS expects delay in Australia tanker deliveryWed Nov 26, 2008
Thomson Reuters 2008 All rights reserved
WASHINGTON, Nov 26 (Reuters) - European defense firm EADS (EAD.PA: Quote, Profile, Research, Stock Buzz) expects delivery of its first refuelling tanker to Australia to be delayed, but said work on the next four aircraft was on track and proceeding well.
Australia picked EADS and its A330 Multi-Role Tanker Transport (MRTT) over Boeing Co's (BA.N: Quote, Profile, Research, Stock Buzz) 767 tanker in 2004, ordering five aircraft to perform both refuelling and transport roles.
Northrop Grumman Corp (NOC.N: Quote, Profile, Research, Stock Buzz) and EADS beat Boeing to win a $35 billion U.S. refuelling tanker deal last February, but U.S. government auditors upheld a Boeing protest in June. The Pentagon decided in September to cancel the competition, and let the new U.S. administration decide how to proceed.
During a visit to EADS in Madrid on Monday, Greg Combet, Australia's Parliamentary Secretary for Defense Procurement, said the government expected "a slight delay and their delivery". Any delay in the Australian tanker program could factor into the new U.S. competition, where officials typically consider issues such as past performance on similar programs.
Boeing has also experienced significant delays on its deliveries of tankers to Japan and Italy.
An EADS official said the delivery schedule for the first MTRTT had been adjusted due to a joint decision with Australia to participate in the 2007 Paris Air Show, modifications to the refuelling and avionics systems; and additional flight testing to ensure that a more robust mission system.
"We remain on track to meet full operational capability in 2011 as planned," said an EADS official familiar with the program, who asked not to be named.
The official also said the modification work was moving forward successfully and was on target to meet delivery requirements for the next four tankers being built for Australia. (Reporting by Andrea Shalal-Esa and Rob Taylor in CANBERRA; Editing by Anshuman Daga)
Source
http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSN2634933320081127
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