For Immediate Release

April 25, 2006

COMPETITION FOR NEW AF TANKERS
ADDRESSES SUBSIDY ISSUE

WASHINGTON, D.C. – For the past several months, U.S. Rep. Norm Dicks has been asking the Defense Department to explain how it could accept a bid by the European Airbus consortium to build the Air Force’s new refueling tankers at the same time the government’s Trade Representative was arguing against illegal subsides that allow it to produce those aircraft.  The answer came today, as the Pentagon released its initial solicitation of industry interest in the tanker program, specifically asking for an accounting of government subsidies and “launch aid” that a potential manufacturer has received.

            Rep. Dicks, a member of the House Defense Appropriations Subcommittee, said “It was encouraging to see the Air Force tanker program finally moving forward.  And it was even more encouraging to see that the solicitation of interest has addressed the question I have been asking: If Airbus is intending to compete for Pentagon business, how does the Defense Department account for the unfair subsidies the European governments have given the consortium?”  

            He continued: “Since the U.S. Trade Representative has filed an official WTO complaint against the billions of dollars of “launch aid” that has benefitted Airbus, the Defense Department must necessarily account for the advantage that these illegal subsidies have given the company, especially because they have come at the cost of U.S. jobs.”

            The congressman has sought to accelerate the replacement of the Pentagon’s fleet of KC-135 tanker aircraft, which provide U.S. military aircraft with the critical range they need to reach areas of conflict worldwide.  The existing fleet of KC-135 aircraft ranges from 42-to-48 years old and it is very costly to maintain, Dicks contends.  He said he supports a “fair and open competition” to produce the tanker, “but a competition is only fair if there is a level playing field.” 

            The “request for information” from industry that was issued today by the Air Force asked potential tanker manufacturers to respond within 45 days.   After that, a more detailed “request for proposals” will be issued, and it is expected that a contract could be awarded in early-to-mid 2007.

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