SPR Spirit Aerosystems Holdings Inc

Officials at European Aeronautic Defence & Space Co NV (EAD.FR) may be drowning their sorrows Friday after losing out to Boeing Co (BA) on a multi-billion dollar deal to supply military airborne refuelling tankers to the U.S. Air Force, but the news is nevertheless welcome for some European suppliers.

The Pentagon said late Thursday it has selected Boeing for a contract that is worth more than $30 billion. Boeing's offer of a "tankerized" version of its 767 commercial aircraft was preferred over a larger aircraft proposed by EADS that would have been a version of the Airbus MRTT, a multirole military aircaft based on the A330 commercial airliner.

French jet engine and aircraft equipment maker Safran SA (SAF.FR) stood to benefit significantly if the EADS proposal had won, as it would have supplied the landing gear, brakes and wiring and has a 20% equity interest in the CF6-80E jet engine made by General Electric Co (GE). But all is not lost. Safran companies will still provide the wiring, brakes and wheels, altogether worth a bit less than $1 million per plane. The U.S. Air Force program involves a total of 179 aircraft.

Yves Leclere, a senior Safran executive, was quoted as saying in an article in Les Echos that he expected Safran will be invited to set up a facility close to Boeing's sprawling assembly plants at Seattle.

In the U.K., Cobham PLC (COB.LN) will provide the hose and drogue aerial refueling system for Boeing's KC-46A. That is significant for the company as it will help increase earning upgrades, said Atif Latif, trader at Guardian Stockbrokers in the U.K.

Alenia Aerospazio and Aeronavali, both subsidiaries of Italy's Finmeccanica SpA (FNC.MI), have been given work shares on the military version of the 767. And Spirit AeroSystems Holdings Inc (SPR), a Boeing subsidiary, will make the wing leading edges for the U.S. tanker at its plant at Prestwick, Scotland.

The reaction among French suppliers to the news of the tanker award was one of stoic resignation. "We hadn't had enormous expectations," one executive said, adding: "You can't win all the time. There are always other opportunities."

-By David Pearson, Dow Jones Newswires; +331 4017 1740, david.pearson@dowjones.com

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