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Thu, Nov 04, 2004

Lockheed May Enter Tanker Wars

CEO Stevens Says Company Might Compete With Boeing, Airbus

Boeing continues to smart from the Darleen Druyun ethics scandal, as well as the stolen Lockheed documents scandal. Airbus and its parent company, EADS are... well, foreign. Now, Lockheed-Martin may see a chance to make billions by jumping into the competition for the military's next-generation aerial refueling tanker.

Lockheed CEO Robert Stevens said Wednesday the company hadn't ruled out the idea of submitting a bid to the Pentagon as the search for a tanker manufacturer continues. "We don't have any opportunities to discuss today. Should one arise, we'll evaluate it thoroughly," he said at Lockheed's plant in Owego (NY). Reporters listened in on a conference call.

Make no mistake -- Boeing is still the leading contender in the quest for a tanker contract, even after its $23-billion lease-purchase plan fell through in the wake of the Druyun case. Druyun, an Air Force negotiator on the tanker deal, went to work for Boeing. Later, she admitted doing "favors" for the company between the time she accepted the Boeing job and the time she left government service.

How would a Lockheed tanker deal work? Well, let's go back to EADS/Airbus for a moment. That company has been looking for a US partner to shore up its bid for the tanker contract. Analysts speculate that, in conjunction with Northrop-Grumman, the two companies might just find a way into the Pentagon's wallet.

FMI: www.lockheedmartin.com

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