After The Tanker Loss, Will Airbus Build An A-350 Assembly Plant In The U.S. ?

Boeing KC-46As

Airbus lost the USAF tanker competition to Boeing's KC-46A, and with it its plans to enter the huge U.S. defense market via a tanker assembly plant in Alabama.

According to media reports, EADS, the mother company of Airbus, is awash in cash. EADS may use this cash hoard to continue its plan of entering the huge U.S. defense market with an A-350 assembly plant maybe also in Alabama.

Airbus A-350

EADS can use the A-350 to compete in the next KC-Y tanker competition that may see the replacement of the KC-10. Although the KC-10 is a relatively young tanker, if this replacement cycle will push through, the A-350 may go against the B-777 or the B-777NG.

Whatever happens in the tanker arena, an A-350 assembly plant in the U.S. may make business sense if the Euro remains strong compared to the dollar, and the A-350 is successful in its order book that the new European plant cannot cope with the demand.

New Airbus A-350 European plant

Such a scenario may convince EADS to forego any protest against the Boeing KC-46A win.