Skip to: Content
Skip to: Site Navigation
Skip to: Search
« Back to the grid | Next story »

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

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Pentagon's New Bid Rules Favor Northrop: Boeing

    Aug 7, 08 11:41 AM CDT
    Pentagon's New Bid Rules Favor Northrop: Boeing The Pentagon issued new criteria yesterday for the second round of bidding on its lucrative fuel-tanker contract, Bloomberg reports, and Boeing backers immediately cried foul. The new terms give bonus points to a plane that carries more fuel than the earlier guidelines, which Boeing officials and congressional allies claim favors its European-backed rival, Northrop Grumman.
    More »

  • Pentagon to Re-Open $35B Air Force Tanker Bid

    Jul 9, 08 12:16 PM CDT
    Pentagon to Re-Open $35B Air Force Tanker Bid The Pentagon will re-open a $35 billion contract to build the Air Force's fleet of new refueling tankers and pick a new winner by the end of the year, congressional sources say. The Office of the Secretary of Defense—not the Air Force—will oversee the new competition between Boeing Co. and a team led by Northrop Grumman Corp. More »

  • Tough Calls Await on Boeing Defense Bid

    Jun 12, 08 3:24 PM CDT
    Tough Calls Await on Boeing Defense Bid The Government Accountability Office must rule by next Thursday on Boeing’s appeal of an Air Force deal granting European rival Airbus a multi-billion dollar tanker contract—and CEO Jim McNerney has a tough call ahead if Boeing loses, the Seattle Times reports. He can ground the appeal, or draw more attention to political concerns neither the military nor GAO was allowed to consider. More »

  • McCain Sucked Into Boeing Battle

    Mar 12, 08 4:30 AM CDT
    McCain Sucked Into Boeing Battle John McCain is being dragged into the feud between Boeing and the Air Force, reports AP. A firm headed by McCain's campaign finance chairman, Tom Loeffler, was paid $220,000 to lobby on behalf of the Airbus, the successful European rival to Boeing's 767 fuel tanker. McCain had helped block an earlier, flawed Boeing contract for the tanker, and sent letters to the Pentagon in 2006 urging them to change bidding procedures that Airbus said were anticompetitive. More »

  • Boeing to Appeal $40B Contract

    Mar 10, 08 8:09 PM CDT
    Boeing to Appeal $40B Contract Boeing vowed today to appeal a controversial $40 billion contract to build refueling tankers for the Air Force, the Wall Street Journal reports. "Our team has taken a very close look at the tanker decision and found serious flaws in the process," Boeing CEO Jim McNerney said. The Air Force awarded the contract to Northrop Grumman and Airbus, which ruffled US feathers by planning to build its tankers in France. More »

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)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (
1
 of 2)

Tags

Pentagon • Boeing • Airbus • Air Force • Government Accountability Office • US Air Force • Northrop Grumman • aircraft • contracts


Loading...

Today's Most Popular

Loading...

Other Business Stories

What is Newser?

2008 Codie Finalist

Face it: there's too much news. At Newser a team of editors and writers culls the most important stories from hundreds of U.S. and international sources and reduces them to a headline, picture, and two paragraphs. It's the Newser guarantee: we can take any report or column or video and pack what you need to know into 120 words or less. Newser's short-form aggregation, visual format, and unique information tools help you get more of the kind of news you want, in a quicker and more entertaining way. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »