Boeing (BA) is expected to submit a bid for a $35 billion Air Force tanker contract today, as tensions build over subsidies to its rival, the European Aeronautic Defense and Space Company.
EADS submitted an 8,800-page bid for the contract Thursday based on the Airbus A330-200, the New York Times reported. The World Trade Organization said last week that this model received illegal subsidies in the form of low-cost loans from European governments.
Some are calling for the Pentagon to add the cost of these subsidies to the EADS bid in order to ensure fair competition with Boeing. The Pentagon says its main concern is finding the best deal.
Ralph Crosby, the chairman of EADS North America told the Times that Boeing supporters are "wasting a lot of time trying to derail a process because their airplane is inferior."
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