Boeing Stunned, Angry Over Bid

Northrop Grumman and Airbus will build $40B fleet in France

(NEWSER) - The Air Force shocked observers yesterday by handing a $40 billion contract to build aerial refueling tankers to a foreign company, the Los Angeles Times reports. Northrop Grumman and Airbus—which plan to build the 179 tankers in France—beat out Washington state's Boeing. Outraged lawmakers from Washington state called the move “a blow to the American aerospace industry," the New York Times reports. More»

(NEWSER) - 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»

CEO can fold if feds deny appeal on tanker, or ramp up lobbying

(NEWSER) - 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»

US firm blasts 'unfair' award of Air Force contract to Europeans

(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. More»

CEO claims 'serious flaws' in bidding

(NEWSER) - 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»