EADS Tanker Loss Threatens Goal to Wean Company Off Airbus Jets

European Aeronautic, Defence & Space Co.’s rejection for a $35 billion U.S. tanker contract threatens its goal to cut reliance on commercial aircraft and may force it to seek acquisitions at home to build up defense operations.

EADS, based in Paris and Munich, relies on its Airbus SAS civil aircraft unit for two thirds of all sales. Chief Executive Officer Louis Gallois had aimed to balance that distribution by 2020, partly by gaining more access to the U.S. military market, the world’s largest. After Boeing Co. yesterday beat EADS on the tanker bid, achieving that goal may take longer, analysts said.