EADS and Northrop-Gruman Win Air Tanker Deal from Air Force

In a major change in its suppliers, the U.S. Air Force has chosen the French-German company EADS to build the next generation of air refueling tankers. The contract is worth $40 billion.

EADS teamed up with American manufacturer Northrop Grumman for the deal, which is for 179 planes to be provided over the next 10 to 15 years.

The tanker will be based on the Airbus A330 aircraft. EADS is the company that makes Airbus airplanes.

This is a major loss for Boeing, which had been favored to win the contract with its 767 refueling tanker. Boeing has been providing air refueling tankers to the Air Force for the last five decades.