Analysis: Lockheed-Airbus face lengthening odds in U.S. tanker re-run

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Analysis: Lockheed-Airbus face lengthening odds in U.S. tanker re-run
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European hopes of winning at the second attempt a groundbreaking U.S. military order for refueling planes are fading after the Pentagon scaled back its potential order, cooling the prospect of a new transatlantic 'Tanker War,' industry sources said.

Lockheed and Airbus will tout their LMXT tanker at the Paris Airshow this week, bringing U.S. reporters onboard the A330 Multi Role Tanker Transport on which the new plane is based.

In 2011, Boeing won the first of a three-phase procurement to replace the Air Force's aging tanker fleet, securing a contract for 179 KC-46s. The program has since incurred $7 billion in losses.The U.S. Air Force expects to decide later this year how many tankers to buy after the KC-46's initial production run ends in 2029 and whether it will hold a competition.

But Larry Gallogly, Lockheed’s director of LMXT business development, said Lockheed and Airbus "are most definitely still in this competition." The companies announced a third American supplier, engine-maker General ElectricLockheed and Airbus sought a program of at least 120 aircraft, but “the business case can certainly close below that,” Gallogly said.

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