May 2010
Volume 09, Issue 1
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Cover Story

THE LEGACY CONTINUES

The NewGen Tanker that Boeing will offer the U.S. Air Force in the KC-X competition is based on the medium-sized 767 commercial jet and represents the best of Boeing’s military and commercial designers, engineers and managers, and, most important, the skill, experience and commitment of Boeing’s global employees. It’s the ‘One Boeing’ approach that gives the company a competitive advantage. The tanker would be built by Boeing employees in Everett, Wash., and modified by a Boeing team in Wichita, Kan.

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THE LEGACY CONTINUES Bob Ferguson/BOEING

AIRBUS SUBSIDIES AND THE TANKER COMPETITION

Boeing is concerned that government subsidies Airbus has received as launch aid for its commercial jets, including the A330, will create an uneven playing field in the KC-X tanker competition. EADS, the parent of Airbus, plans to offer the U.S. Air Force an A330-based tanker. Boeing will offer its NewGen Tanker. The World Trade Organization recently ruled, according to members of Congress and others who were briefed on the ruling, that the Airbus subsidies are improper. Those Airbus subsidies should be accounted for in evaluating any proposal for an A330-based tanker, according to Boeing. “We believe this subsidized-price advantage tilts the U.S. Air Force’s refueling tanker competition in favor of Airbus’ parent, EADS,” Jim McNerney, president, chairman and CEO of The Boeing Company, wrote recently in “Our Flight Plan.’’ Employees can read more of what McNerney had to say about the subsidy issue and the tanker competition on the Boeing intranet. This section of Frontiers is only accessible within The Boeing Company internal Web.

Our Flight Plan >>

Taking flightBob Ferguson/BOEING