Airbus finally wins one – and even they can't believe it!

EADS, the European aeronautics consortium often referred to by its most popular brand name, Airbus, finally won a military contract — and it's a doozy. The United States Air Force decided that the A330 MRTT/ KC-30B from Northrop Grumman and EADS Airbus will be its next aerial tanker. It's a contract for nearly 180 planes that could be worth more than $100-billion when all is said and done.

Even EADS couldn't believe it:

Louis Gallois, EADS chief executive, said on Friday night the contract was a ”breakthrough for EADS” in the biggest defence market in the world. ”To win against Boeing is just great,” he told the [Financial Times].

As recently as Friday afternoon the EADS team had been convinced that Boeing would take the contract. Mr Gallois, about to leave Paris for a mountain holiday, said he had simply not believed his ears when informed at 10.25pm local time last night. ”I think it is the best contract I have won in my life.”

The EADS offering was up against Chicago-based Boeing. But despite being the hometown favourite, Boeing couldn't swing the deal and is now threatening that it may be forced out of the tanker business.

Almost predictably, U.S. politicians are freaking out over this deal. “It’s stunning to me that we would outsource the production of these airplanes to Europe instead of building them in America,” said Sam Brownback, the Republican senator for Kansas, where Boeing has a site. “I’ll be calling upon the secretary of defence for a full debriefing.”

But the Air Force fell in love with the Airbus offering. Said one air force general: “More passengers, more cargo, more fuel to offload, more availability, more flexibility, more dependability…more patients in the aeromedical evacuation role.”

There is a rising tide of protectionism among U.S. lawmakers right now — the threats by Senators Obama and Clinton to cut NAFTA ties are great examples of that — and, as a result, any company or country that is eating lunch normally made in America ought to be eyeing these developments carefully.