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3/9/10

AIRBUS: Europe sounds warning bell over US refuelling tanker deal

The European Union's executive sounded a warning over US military procurement policies on Tuesday after a part-European consortium pulled out of the running to supply the US with a new refuelling aircraft, amidst claims of American prejudice. European military giant EADS and US partner Northrop-Grumman had won a 35-billion-dollar tender in 2008 to build the next generation of aerial refuellers for the US air Force. But the award was cancelled after intensive lobbying from rival Chicago-based company Boeing. On Monday, EADS and Northrop-Grumman pulled out of the repeat bidding process, arguing that the new tender terms favoured Boeing. "The European Commission would be extremely concerned if it were to emerge that the terms of tender were such as to inhibit open competition for the contract ... (and) will be following further developments in the case very closely," a commission statement said.

For more: Europe sounds warning bell over US refuelling tanker deal : Business

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