Cites Recent WTO Ruling On Unfair Competition

You could see this one coming a mile away in the fog. Representative Todd Tiahrt (R-KS) says Airbus should be disqualified from the U.S. Air Force tanker competition, in light of a recently leaked WTO ruling that Airbus has gotten an unfair advantage from government subsidies.

Todd Tiahrt R-KS

Tiahrt spoke with the Office of the United States Trade Representative on Friday. “(The) news further demonstrates the French tanker should have been disqualified because of illegal subsidies,” he said

The political online site Politico reports that Tiahrt's comments were quickly followed by less-strident statements by Senator Patty Murray (D-WA) and Norm Dicks (D-WA), which represent the area in which a new Boeing tanker would be built. They stopped short of saying Airbus should be disqualified, however. “If DoD wants a truly fair competition, it needs to start with competitors that play by the rules,” Murray said in a statement. “DoD needs to answer to how this violation of WTO rules will be considered in the competition for the vital aerial refueling tanker.”

Airbus Tanker File Image

Dicks added: “It would be inconceivable for the Defense Department to issue its request for proposals for a new Air Force refueling tanker without including a provision which recognizes the ruling issued today by the WTO panel: that these Airbus airframes have benefited from illegal subsidies that gave them an unfair advantage in global sales."

Boeing 767 Tanker File Image

Airbus has won two rounds of bidding on a contract to replace the aging KC-135 tanker fleet, but both times the contract has been re-opened either due to technicalities or congressional intervention. For their part, Politico reports that EADS and Northrop Grumman say the WTO ruling should have no bearing on the competition. EADS CEO Ralph Crosby said in a statement: “The Air Force has said its number one priority is to replace the service’s Kennedy-era tankers through a competitive procurement.”

FMI: www.boeing.com, www.airbus.com