Airbus Tanker Damaged, Refueling Boom Falls in Ocean
An Airbus SAS refueling aircraft was damaged in an incident with an F-16 fighter jet over the Atlantic, in a potential setback for the planemaker weeks before submitting its final bid for a U.S. order.
Both aircraft returned to their home airfields, according to the Australian Department of Defense, which is slated to receive the tankers. Following the incident, the refueling boom fell into the sea and Airbus Military and European military authorities will investigate, the statement said.
“This isn’t useful, but it happens sometimes,” Jaime Perez-Guerra, an Airbus Military spokesman, said by phone from Madrid. “It’s under investigation. It’s the first time we’ve experienced that but we know that on several occasions it’s happened with other tankers.”
Airbus is competing with Boeing Co. in the U.S. to replace 179 of a fleet of more than 500 Boeing KC-135 refueling aircraft with the U.S. Air Force. The contest has dragged on for years after Boeing challenged the initial reward of the bid to competitors. Airbus argues that its version, based on the A330 wide-body civilian aircraft, is tried and tested and based on a larger, more advanced aircraft.
‘Closely Watched’
“This is a massive contest for Airbus, so this will be closely watched, but there’s no reason to think this mishap affects the bid,” said Ed Stacey, an analyst at Espirito Santo Investment Bank in London, who has a “buy” rating on Airbus parent European Aeronautic, Defence & Space Co.
The military depends on tankers to extend the range of combat and transport aircraft. EADS plans to submit its “best, final offer” for the U.S. tanker this month, North America division head Sean O’Keefe said Jan. 12. A winner may be announced as early as February.
Airbus Military has been preparing to turn over the first tanker to Australia, and will proceed as normal, pending results of the investigation, Perez-Guerra said. No Australian personnel were involved in the accident yesterday. The Aircraft took off from Getafe in Spain, near Madrid, and the incident occurred close to the Portuguese coast, Airbus said.
EADS fell as much as 35 cents, or 1.7 percent, to 20.61 euros in Paris and traded at 20.63 euros as of 4:31 p.m. local time, valuing the company at 16.8 billion euros ($22.6 billion).
To contact the reporter on this story: Howard Mustoe in London at hmustoe@bloomberg.net.
Andrea Rothman in Toulouse, France at aerothman@bloomberg.net.
To contact the editors responsible for this story: Benedikt Kammel at Colin Keatinge at ckeatinge@bloomberg.net
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