$40 billion Air Force tanker deal expected - CNN.com

WASHINGTON (CNN) -- The U.S. Air Force is expected to announce this week a $40 billion contract to replace its aging fleet of air refueling tankers, a process which has been mired in corruption and political wrangling for years.

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The U.S. Air Force is expected to announce that it's replacing its aging tanker fleet.

Two groups are competing for the project known as the KC-X program -- Boeing and Northrop Grumman.

Boeing is proposing a tanker based on its 767 commercial airliner. Northrop, working with Boeing arch-rival Airbus and its parent company, European Aeronautic Defense and Space Company, is offering a model based on the Airbus A330 airliner.

To sweeten the deal, EADS announced it would put a plane assembly plant in Alabama if the company wins the contract.

[From $40 billion Air Force tanker deal expected - CNN.com]

With contract options added, we are talking a cool $100 billion.

By the way, the "to sweeten the deal..." issue with EADS building a plant in Alabama can be easily translated to "it's the only shot we got at selling an Airbus to the USAF."

I am also disappointed in how CNN failed to notice that this deal would easily reach beyond tankers. That airframe is a no brainer for a strategic airlift plane and even as an AWACS platform.