Means Money, Saved Jobs For Companies Impacted By Power8

As disgruntled as their American counterparts are with the news the first phase of the US Air Force's KC-X tanker contract has been awarded to an Airbus-sourced plane,
British aerospace firms are thrilled with the news.

According to The Sunday Times in London, EADS senior executives note the deal represents the second-largest contract ever for UK aerospace, after BAE Systems’ 1989 agreement to supply combat aircraft to Saudi Arabia.

The KC-45A project could mean $6 billion worth of work, to help secure 9,000 British jobs at risk in EADS' controversial "Power8" restructuring initiative. The British engineering firm Cobham, which specializes in airborne refueling technology, also expects to benefit to the tune of $1 billion, as long as the team comprised of Northrup/EADS hangs onto the contract.

"This is a huge boost to our business, and to the whole UK supply chain," said Cobham CEO Allan Cook. "We put a lot of time and effort into the bid, and I am delighted it has paid off."

The British arm of GE Aerospace Systems would also benefit as a major supplier.

As ANN reported, the A330-sourced aircraft from EADS/Northrop was selected by the Pentagon Friday for the $40 billion deal, over Boeing's KC-767 -- the plane many analysts, politicians, and pundits predicted would win the contract by a landslide.

The Air Force noted the larger, more capable -- and slightly more expensive -- EADS offering scored higher than the Boeing aircraft in most major categories.

If the decision stands up to calls from lawmakers for an audit of the Air Force's selection process, it could mean the closing of the 767 production line after current backlogged orders for the airliner and freighter versions are filled.

FMI: www.northropgrumman.com/kc30/, www.cobham.com