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Airbus parent considers new tanker bid

Airbus parent EADS says it is considering a new bid for a lucrative Pentagon contract for mid-air refueling tankers, but wants an extended deadline.

EADS says that the Defense Department's new ``willingness to extend the time frame'' was a positive sign that the department ``seeks competition.''

The European aerospace and defense company said Friday it is ``assessing this new situation to determine if the company can feasibly submit'' a new bid.

EADS urged a ``significant extension'' of the early May bid deadline.

Earlier this month, EADS pulled out of bidding, saying rival Boeing Co. appeared to be the front-runner. EADS, which had partnered with Northrop Grumman for the 179-tanker order, has criticized the contract as anticompetitive.

Meanwhile, Boeing will speed up production plans for its 777 and 747 models in anticipation of greater demand from commercial airlines in a couple of years.

The aircraft maker, based in Chicago, said Friday it will increase production of its fuel-efficient 777 wide-body in mid-2011 to seven airplanes per month from five. The ramp-up was originally planned early 2012.

Production of the latest version of Boeing's iconic 747 will increase to two airplanes per month from 1.5 in mid-2012. The production increase had been scheduled for mid-2013.

Boeing sees the airline industry recovering this year, followed by a return to profitability in 2011. That should lead to demand for new aircraft in 2012 and beyond, the company says.

Associated Press
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