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Fresh blow to EADS as US defers $35bn tanker refuelling contract

By Demetri Sevastopulo in Washington and Sylvia Pfeifer,in London

Published: September 11 2008 03:00 | Last updated: September 11 2008 03:00

EADS suffered a fresh setback yesterday in its attempt to break into the lucrative US defence market after the Pentagon scrapped a $35bn refuelling tanker contract that the Franco-German group had been awarded this year.

The Pentagon was expected to restart the long-running tanker competition, that pitched Boeing, the US aerospace and defence group, against its European rival this week, and to choose a winner by the year's end.

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