Boeing Unloads National Security Risks of “EADS”

Using the example of EADS (EADS:P) marketing a helicopter in Iran in 2005 Boeing (BA) is raising the idea that a successful EADS win of the KC-X might be a security risk. EADS North America of course has shot back that the issue is really not a part of this contest and that the U.S. Defense Department has not issues with their participation. It is really not a fair criticism in this situation. Boeing has certainly sold aircraft to many different nations some of whom are not friendly to the U.S. right now.

The idea of dual placed loyalties for a competitor such as EADS that is located overseas is not an uncommon criticism in these situations. Ideally there would be multiple domestic sources for any government contract but especially defense related ones. The problem is for the KC-X there is only two real world sources for this type of aircraft and only one is American. The real issue here is the decline of the U.S. industrial base over the last twenty-five years.