|
Boeing in tanker talks
|
 |
May 23, 2001: 4:49 a.m. ET
Boeing, BAE systems target $50 billion military tanker joint venture
|
LONDON (CNN) - Boeing, the biggest aircraft maker, said on Wednesday it is in talks with Britain's BAE Systems about a military tanker joint venture.
 The market for military tanker aircraft, used to refuel jets inflight, is valued at about $50 billion and an agreement "could be reached in the next couple of weeks," Charlie Miller, a spokesman for Boeing, told CNN.
Gerald Daniels, the head of Boeing's military aircraft business, earlier told the Financial Times the venture would be "another step towards bringing the companies closer together."
"It would be a big leap to say it was a prelude to a merger, and we do have a similar relationships with other U.S. companies," Daniels added.
BAE, the world's fourth-largest defence equipment maker, and Boeing (BA: Research, Estimates) are already part of a consortium bidding for a £13 billion ($19 billion) contract to supply tankers that can refuel fighter jets in mid-air for Britain's Royal Air Force.
The UK Ministry of Defense is currently leasing four Boeing C-17 transport aircraft.
Boeing's Miller said the U.S. is expected to take between 400 and 500 aircraft to replace its ageing fleet, while worldwide demand outside the U.S. is estimated at around 90 to 100 aircraft over the next 15 years.
BAE and Boeing are offering a version of the Boeing 767 aircraft but is up against stiff competition from European Aeronautic Defence and Space Company, Europe's biggest defence company. EADS is offering the Airbus A330s.
Shares in BAE (BA-), which owns a 20 percent stake in Airbus, Boeing's only challenger in large commercial jets, rose 3.1 percent to 349.1 pence in London trading. 
|
|
|
|
|
 |
|
