Financial Times FT.com

Pentagon refuses to split deal for tankers

By Demetri Sevastopulo in Washington

Published: August 5 2007 21:24 | Last updated: August 5 2007 21:24

The Pentagon will not split a lucrative contract to supply the US Air Force with refuelling tankers between Boeing and EADS, the European defence consortium, according to a senior US defence official.

Sue Payton, head of air force acquisitions, said splitting the deal for an initial 80 tankers would prove too costly at a time when the air force is grappling to fund several other expensive weapons programmes.

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