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...announcement by French aerodefense group EADS that it was pulling out of the bidding process for a $35 billion contract to supply midair refueling planes to the Pentagon sent shock waves across Europe this week. EADS, which was partnering in the bid with the U.S. company Northrop Grumman, based its decision on its claim that the competition had been rigged in favor of archrival Boeing - an accusation that spurred charges of unabashed American protectionism in Europe. Now, with both sides digging in their heels, what began as a transatlantic flap over the refueling-aircraft business is starting to sound like...

Author: /time Magazine | Title: Europeans Cry Foul Over a Defense Contract | 3/11/2010 | See Source »

...foul from the French? EADS initially lost the refueling-aircraft bid in 2003 - only to see the decision overturned on evidence that Boeing hadn't played fairly in winning it. Then in 2005, EADS sought to improve its chances of success by allying itself with American partner Northrop Grumman in a new pitch. The pair won the next round of bidding, but that decision sparked a chorus of complaints from U.S. legislators about American contracts (and tax dollars) going to a European business - and it was later overturned in an appeal filed by Boeing. The Pentagon reopened the bidding...

Author: /time Magazine | Title: Europeans Cry Foul Over a Defense Contract | 3/11/2010 | See Source »

...defense officials have defended their contract specifications, saying that the bidding process aimed to get the best aircraft at the lowest price. However, Commander Darryn James, a Pentagon spokesman, told Reuters, "We are disappointed that Northrop is not competing." He added that neither the decision by EADS and Northrop Grumman to drop out of the competition nor the fallout from it changes "the Defense Department's commitment to transatlantic defense ties." (Read "For the Arms Industry, India Is a Hot Market...

Author: /time Magazine | Title: Europeans Cry Foul Over a Defense Contract | 3/11/2010 | See Source »

...group includes the defense companies Northrop Grumman Electronic Systems and Raytheon International Inc., as well as major manufacturers like Motorola, Boeing and others producing satellites, medical equipment and pipelines. The return of the Lockerbie bomber may have enraged U.S. officials and millions of Americans, but, says Assistant U.S. Secretary of Commerce Nicole Lamb-Hale, this week's trip is aimed at moving on from that bitter history. "We're certain this marks a new chapter in our relationship and that it will help to strengthen economic and political ties," she said in Tripoli...

Author: /time Magazine | Title: After 37 Years, the U.S. Arrives to Do Business in Libya | 2/22/2010 | See Source »

...What has really drawn defense companies to India, however, is the smaller-ticket market for internal security, especially after the Nov. 26, 2008, terrorism attacks in Mumbai. "We had to rethink our strategy after 26/11," says Woolf Gross, corporate director of international programs for Northrop Grumman. "After our review, we decided to cater to India's homeland security." The company adapted one of its surveillance systems, for example, to identify suspicious vehicles at sea, the route that the Mumbai attackers are believed to have used. For the first time since the inaugural Defexpo in Delhi in 1999, Northrop Grumman...

Author: /time Magazine | Title: For the Arms Industry, India Is a Hot Market | 2/19/2010 | See Source »

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