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Airbus submits bid for US military mega-project

Boeing eyeing export of new F-15
Washington (UPI) Jul 8, 2010 - Boeing is hoping to win an export license to sell its new F-15 Silent Eagle to South Korea within a month, the company said. The move suggests that the Chicago company will be vying for a competition due to be announced by South Korea for an order of 60 new fighters. The company prides the F-15SE as a "customizable fighter that can be outfitted with AESA radars, radar absorbent coatings, large digital cockpit displays, fly-by-wire software, canted tails and bolt-on internal weapons bays." The plane also has special coatings to help it evade hostile aircraft. The Boeing program manager for the F-15 Silent Eagle model, Brad Jones, said that South Korea has also placed orders for 60 K models while it has already expressed interest for the most advanced model in its third tranche of procurements expected next year.

The Defense News periodical, in fact, reported that South Korea and Boeing have been in talks, negotiating details and purchase of the specific aircraft for more than a year. Boeing, though, hasn't been able "to openly market the semi-stealthy jet to international customers until it received clearance from the U.S. government to sell low-observable technology abroad," Defense News reported. According to Jones, in late 2009, Boeing had provided flight evaluation data to the government in Washington about the new F-15 take. It has since then received an export release policy. It is now awaiting response from the U.S. government on its bid for a formal export license so it can meet the South Korean tender. South Korea "has asked for information on Silent Eagle so now we've applied for the (license) and we hope to get that before the end of the month," said Jones, after a July company briefing with reporters in Arlington, Va. "As soon as the export license is provided, then I can provide (marketing) information to a country."

Boeing is also said to have reached agreement with a third-party defense company to design the weapons bay for the combat aircraft as well as other F-15 models. Jones refused to disclose details of the company, saying the defense contractors didn't want to publicize its project involvement yet. Boeing unveiled its Silent Eagle project last March, assessing the cost per plane at about $100 million. That amount, though, will vary depending on additional equipment requested and installed. Military experts and U.S. officials have assessed the new model aircraft as far superior to other competing models but still lagging in capabilities behind Lockheed Martin's F-35 fighter.
by Staff Writers
Washington (AFP) July 8, 2010
European aerospace giant Airbus on Thursday submitted its bid for a 40-billion-dollar US military contract also eyed by bitter rival Boeing.

Hoping to snare the contract "of the century," executives from Airbus's parent firm EADS said their 8,819-page bidding document was submitted ahead of a Friday deadline.

The winning firm will build 179 aerial refueling tankers for the US Air Force.

"We are proud of our offering, which is the only one in this competition that is flying and refueling today," said European Aeronautic Defence and Space Co. North America chairman Ralph Crosby.

The European firm is proposing a military version of its A330 commercial passenger airliner, the KC-45.

"We have delivered two copies of an 8,000-page plus proposition," Crosby said.

Boeing is expected to submit its proposal on Friday.

With an eye on its US rival EADS said if it won the contract, a new aircraft manufacturing facility in Mobile, Alabama would help create 48,000 US jobs.

Airbus and Boeing have traded accusations of unfair competition as they compete for the kudos and cash that come with producing 179 aircraft for the US military.

US lawmakers have called for the value of Airbus's alleged subsidies to be factored into the European firm's bid.

Crosby rejected talk about the subsidies and related World Trade Organization probes as "not a central issue in this competition."

"We spend a lot of time talking about this crap," he said. "We are spending all our time on relatively arcane and inconsequential issues."

Crobsy insisted the most important issue should be how well each project meets the Pentagon's 372 demands.

"It is the defense acquisition for the remainder of the century."

A third company, US Aerospace, has announced it would put up a last-minute bid in partnership with the Russian-Ukrainian manufacturer Antonov.

But its ability to meet US military requirements remains uncertain, given its serious financial difficulties. And Antonov has not confirmed its participation in the project.

US Aerospace said on Wednesday that it would like the bid deadline extended by 30 or 60 days.

The Air Force is expected to make its decision by November 12.

It will be the third time the Defense Department has awarded the contract.

In 2003, Boeing won the lucrative deal, but the decision was overturned after a conflict of interest between the Pentagon and the aircraft manufacturer was revealed.

A senior purchasing manager at the Department of Defense had been negotiating her employment with Boeing at the time of the bid. The Air Force official was later convicted of criminal conspiracy.

Airbus won a second call for proposals in a joint bid with US firm Northrop Grumman in 2008.

Again, the decision was annulled when the US Government Accountability Office found the offers were incorrectly analyzed.

Northrop-Airbus subsequently withdrew from the race triggering an uproar in Europe, with French President Nicolas Sarkozy and German Chancellor Angela Merkel accusing Washington of bias in favor of the all-American Boeing plane.

Now, back in the running, Airbus starts without a major partner, instead teaming up with 200 suppliers, including several big-name US firms, including General Electric, Honeywell, Hamilton Sundstrand, and Goodrich.



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Germany mulls cuts in weapons programs
Berlin (UPI) Jul 8, 2010
Experts from the German Defense Ministry have identified weapons procurement programs that might be downgraded or cut altogether for austerity reasons. The savings package, which end up hurting several industry giants, aims to help Berlin reach the target of cutting the defense budget - $38.5 billion for 2010 - by around $1.3 billion per year. (Note: The U.S. defense budget for 2010, ... read more







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