Dow Jones Newswires, via SmartMoney:
:shock:Air Force Snubs Boeing for Airbus Tankers
Published: February 29, 2008 4:33 PM
NEW YORK (Dow Jones) -- Northrop Grumman Corp. and European Aeronautic Defence & Space Co. broke Boeing Co.'s lock on the market for aerial refueling tankers, winning a $40-billion contract to turn Airbus jets into flying gas stations for U.S. military aircraft, according to a person familiar with the situation.
The unexpected win will likely bolster Los Angeles-based Northrop's standing as a major contender for large programs, while also expanding EADS's foothold in the U.S. defense market.
The Air Force's decision to choose the Northrop-led team is a major setback for Boeing, particularly after Boeing lost out on a $23-billion chance to be the sole supplier of tankers in 2001 after the discovery that a top Boeing official and a former Air Force acquisition official had conducted illegal job negotiations. [Full Article]
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