BA Boeing Co

By Robert Wall

LONDON--The Dutch defense ministry Thursday said it planned to buy two Airbus Group SE (AIR.FR) military refueling planes in partnership with Luxembourg and allocate them for use by the North Atlantic Treaty Organization.

The Dutch ministry said the two refueling planes are due for delivery starting in 2020. The government has set aside up to 1 billion euros ($1.1 billion) for the program.

Airbus said preparations will be made in the coming weeks to finalize the contract. The deal includes options for up to six more of the planes.

Germany, Belgium, Norway and Poland also may participate in the pooling of airborne tankers, the Dutch military said.

In past military operations many NATO members have lacked tanker planes to refuel their combat aircraft. Those air forces in many instances have had to rely on the U.S. tanker fleet. Using tankers allows combat planes to strike targets at greater ranges or stay airborne for longer.

The purchase of the tanker aircraft "is an important contribution in addressing the scarce tanker and transport capability of the European Union in particular," the Dutch defense ministry said.

The U.K. already operates the Airbus refueling plane, a modified A330 airliner. France is also buying the aircraft.

The Dutch defense ministry said its tanker aircraft would be based at Eindhoven air base. They would replace the Royal Netherlands Air Force's two KDC-10 refueling planes.

NATO has been encouraging members to cooperate more closely to pool assets and maximize scarce budget for new equipment.

The U.S. Air Force also is renewing its tanker aircraft fleet. The U.S. is buying its refueling plane from Boeing Co. (BA) after rejecting a proposal from Airbus. Boeing Wednesday said the Pentagon could give its production go-ahead for the so-called KC-46A, a modified 767 airliner, next month.

Write to Robert Wall at robert.wall@wsj.com

(END) Dow Jones Newswires

July 28, 2016 09:29 ET (13:29 GMT)

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