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Tanker Rivals Offer Glimpse of Cost Shoot-Out Strategies

DDN

Tuesday, July 20th, 2010

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By Marina Malenic LONDON--Transatlantic aerospace rivals Boeing [BA] and European Aeronautic Defense and Space Company (EADS) have offered some insight into their pricing strategies as they compete for a multibillion contract to build a replacement fleet of tanker aircraft for the U.S. Air Force. EADS CEO Louis Gallois said on Saturday that he is willing to accept a "tightened" profit margin on the company's A330-based offering but that some margin would remain. "I want to be extremely clear, we want…

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