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Did John McCain's staff help the French win $100 billion Air Force contract?

The Associated Press reports that John "Freedom Fries" McCain employs former lobbyists for EADS, the parent of Toulouse, France-based Airbus, on his staff. EADS and Northrop Grumman (NYSE: NOC) recently won a $100 billion contract to build refueling tankers for the Air Force, edging out Boeing Inc. (NYSE: BA) which has filed a protest.

McCain now employs the people who lobbied for EADS on his own staff. According to the AP report, EADS retained The Loeffler Group to lobby for the tanker deal in 2007. Loeffler Group lobbyists on the project included Tom Loeffler, who lobbies for EADS and serves as McCain's national finance chairman; Susan Nelson, who left Loeffler and is now the campaign's finance director; and former Secretary of the Navy William Ball III, who has campaigned for McCain.

EADS also had a long-term relationship with Ogilvy Government Relations, formerly known as the Federalist Group. Ogilvy lobbyist John Green, who records show worked on the EADS account, recently took a leave of absence to volunteer for McCain as the campaign's congressional liaison.

McCain denies any favoritism towards EADS in awarding the contract. EADS employees donated $14,000 to McCain's presidential campaign, more than any other member of Congress this election cycle. Did EADS get a good return on that $14,000?

It's worth investigating.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He is working on a book about Boeing and has no financial interest in the securities mentioned.

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Last updated: May 16, 2008: 11:45 AM

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