Tanker discussions

The Associated Press is reporting that Airbus’ parent company EADS would bid with partner Northrop Grumman Corp. for a $35 billion U.S. Air Force contract even if it has to share it with Boeing Co.

Secretary of Defense Robert Gates has included the tanker replacement as a priority in his budget recommendations this month and has said he hopes to reopen the bidding this summer.

Lawmakers such as Rep. John Murtha, D-Pa., has proposed a dual tanker buy, a split between the two companies. But Gates opposes the idea.

The KC-X tanker would replace the aging KC-135 fleet. But, the program has faced serious delays and other problems.

If Northrop-Grumman/EADS does win the contract, the tankers would be assembled in Mobile.