DTN News: EADS Adds U.S. Executive As Battle For Pentagon Contract Heats Up

DTN News: EADS Adds U.S. Executive As Battle For Pentagon Contract Heats Up *Source: DTN News / Int'l Media (NSI News Source Info) NEW YORK, USA - October 22, 2009: International defense giant European Aeronautic Defence & Space Co. has tapped a former Bush administration official to run its fast-growing U.S. operations, but is keeping its current chief executive on board to help win a key $40 billion U.S. Air Force contract. EADS said Tuesday that former NASA head Sean O'Keefe, 53, will become chief executive of EADS North America. As of Nov. 1, he will replace Ralph Crosby, 62, who will remain chairman of EADS North America. Mr. O'Keefe was the NASA administrator from 2001 to 2005 and also served as Navy Secretary and Pentagon comptroller during the first Bush administration. EADS Chief Executive Louis Gallois said at a press conference in Washington that Mr. O'Keefe will be charged with expanding business with the Pentagon and Homeland Security Department, as well as guiding the company into space and related areas. Mr. Gallois said that growing the executive suite will also help EADS be seen more as an "American citizen" in the U.S. This comes as the company's growth in the U.S. is creating political friction with homegrown rivals such as Boeing Co. that until recently haven't had to contend with a major presence from EADS in the U.S. defense market, the world's biggest. Mr. O'Keefe comes to EADS from a senior role at General Electric Co.'s Washington operations. The Obama administration has just kicked off a politically contentious process to award an Air Force contract to supply civilian jetliners modified into flying fuel stations that is worth at least $40 billion to the winner. EADS is teamed with Northrop Grumman Corp. and beat out Boeing for the contract last year. A successful appeal by Boeing to the Government Accountability Office overturned the win last summer and the selection process is beginning again this fall. Mr. Crosby's focus will be on securing another victory, which would vault EADS into the big leagues of Pentagon contracting and give its Airbus subsidiary a key manufacturing foothold in the U.S. Airbus plans to assemble modified A330 aircraft in Alabama, which has given the company a solid political base in that state as it and Northrop battle Boeing's political supporters from Washington state and Kansas. Under Mr. Crosby's leadership, EADS won a contract to provide hundreds of supply helicopters to the U.S. Army, a significant move that he said makes the firm's U.S. operations an American company. "I put a check in that box," he said. A series of deals have also grown the company, and Mr. Gallois said more acquisitions are possible as EADS has "the ambition to buy significant targets in the U.S." For now, the company is being very conservative with its cash given the condition of the financial markets, Mr. Gallois said.