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LONDON, Jan. 16 (UPI) -- Britain's Ministry of Defense has
approved a $24 billion contract from EADS to supply the Royal Air
Force with in-flight refueling tankers.
EADS, the Franco-German aerospace and defense giant, has
been battling to save the deal for the past 12 months, the Sunday
Telegraph reports.
A formal recommendation and public announcement is expected
by the end of February.
Industry analysts warn that despite the recommendation the
deal faces major challenges, including convincing the Treasury to
approve the final agreement.
"The Treasury is waiting with interest to see the final
proposal," one analyst said. "The key issue is still to make sure
that everything has remained off balance sheet."
EADS is also expected to bid for a multibillion-dollar
contract to supply tankers to the U.S. Air Force.