US air deal protest's jobs threat

The 179 KC-45A planes would have been due in 2010 and 2011

A valuable contract which was on its way to Airbus and would have guaranteed jobs at its plant in Broughton, Flintshire, may be staying in America.

A US watchdog has upheld rival American company Boeing's protest against the the decision on the US Air Force deal.

The contract for 179 refuelling aircraft was the first of three deals worth up to $100bn for EADS, which owns Airbus, and Northrop Grumman.

The Flintshire plant, which employs 7,400, was expected to build the wings.

Earlier this year, Airbus said it expected to create more jobs at the plant and that the future of its staff had been secured because of the deal.

The 179 KC-45A planes were part of a fleet of 500 aircraft which the US Air Force was expected to want to replace in the near future.

The US Air Force order would have been due in 2010 and 2011.

But the Government Accountability Office (GAO), which is a US government agency, upheld Boeing's protest against the awarding of the air tanker deal to EADS and Northrop Grumman saying the Air Force had made a "number of errors" that could have swung the outcome of the competition.

The GAO's ruling is not binding but it puts pressure on the Air Force to put the process out to tender again.

But Howard Wheeldon, an aerospace and defence analyst, said the decision would see a difficult period for EADS and Airbus.

"My guess is that we will have a totally new competition so it is going to put everything back by at least a year if not longer," he said.

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