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October 8, 2008 6:36:39 AM CDT

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Congress Will Nix Airbus Deal, Boeing Says

Posted Mar 19, 08 6:44 AM CDT in Business 

(Newser) – Boeing isn't taking its loss of a $35 billion military contract to Northrop Grumman and Airbus lying down, Reuters reports. A company vice president said he was "as confident as he could be" that Congress would overturn the Air Force's decision to buy refueling tankers from Boeing's European rival. The firm charges that the Air Force broke federal and military rules in the decision-making process and ended up choosing a riskier plane than Boeing was offering.

Boeing's protest called the choice "fundamentally unfair not only to Boeing, but to the warfighter and the American people." Congressional auditors have 100 days to change the decision. A Northrop spokesman said he thought Boeing's chances of winning a rematch were low—and wondered why Boeing had waited until it lost before attacking the decision-making process.

Source Reuters

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Alabama Gov Bob Riley displays a graph showing the differences between KC-X Tanker Capabilities of the Northrop Grumman/EADS proposal and the Boeing proposal.   (AP Photo)
In this artist's depiction provided by Northrop Grumman Corp., a KC-45A refuels a F-22 Raptor.   (AP Photo/Northrop Grumman Corp)
In this artist's depiction provided by Northrop Grumman Corp., a KC-45A refuels a F-22 Raptor.   (AP Photo/Northrop Grumman Corp)
Boeing union workers Sandy Hastings, left, of Everett, Wash., and David Henry of Puyallup, Wash., protest the U.S. Air Force's decision to award a fuel tanker contract to Airbus-Northrop Grumman.   (AP Photo/Stephen Brashear, File)
In this artist's depiction provided by Northrop Grumman Corp., a KC-45A refuels a B-2 stealth bomber.   (AP Photo/Northrop Grumman Corp)
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Pentagon  • Boeing  • Airbus  • Air Force  • Government Accountability Office  • US Air Force  • Northrop Grumman  • aircraft  • contracts


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