Boeing Loses Air Tanker Contract To Airbus-Northrop

[Chief]

http://www.kirotv.com/money/15402430/detail.html

WASHINGTON -- Northrop Grumman and the maker of Airbus planes beat out Boeing Co. to win a $35 billion government contract to build up to 179 military refueling planes, the Air Force said Friday.

The selection of Los Angeles-based Northrop Grumman and its European-based partner, European Aeronautic Defence and Space Co., came as a surprise to industry and government officials. The Air Force said the larger size of the Northrop-EADS aircraft, based on the Airbus A330 jetliner, tipped the balance in its favor.

It is a big blow to Chicago-based Boeing, which has been supplying refueling tankers to the Air Force for nearly 50 years and had been widely expected to win the deal. Boeing based its proposal on its 767 commercial jet. It already has sold tanker versions of the 767 to Italy and Japan.

The contract -- the first of three awards worth up to $100 billion over 30 years -- positions EADS to break into the U.S. military market in a big way. And it opens up a huge new business opportunity for Northrop Grumman.

"They don't come along at this scale very often," Northrop Grumman Chairman and CEO Ronald Sugar said. "We do see this as being a very important component of our business for many years to come."

In after-hours trading, shares of Northrop initially surged more than 5 percent before retreating to $78.83, an increase of 22 cents. Boeing's stock price fell $2.64 to $80.15.

Let the howling begin up in Pugetopolis...

ddrrii

[Waterbuffalo]

I'll say this to our FEDERAL delegation.. The South Eastern states beat us at our OWN game.. Now what are you going to do about it?

Directed at Jim McDermott ESPECIALLY! Instead of Whining, what ARE YOU GOING TO DO about IT? I'm not looking for a sally strouthers moment from you or more Bush bashing. Get off your ASS and do some thing.

Chief, Jim McDermott is the Jim Dunn of Clark County..Just change polar opposite political parties.

[Chief]

yah...did you know McDermutt is also a DemocRatic Super Delegate too??

McDermutt has been too busy trying to lose the Iraqi war to have been much help for Boeing. Besides, Baghdad Jim doesn't have much use for the military, so he could probably care less that this contract didn't go to Boeing.

[Waterbuffalo]

I'm shocked by that statement? Doesn't have a few million constituent Boeing Unionists in his district?

If he's that useless, might as well cut him loose when he runs for office again.

[Chief]

What does this say about Patty Murray's effectiveness?? How much Union money have she and Maria Cantwell accepted from Boeing workers over the years??

They didn't reelect either one of them so they could lose major Defense contracts like this one...

[Waterbuffalo]

I was speaking of the Senators there.. More like Jim McDermott AND Norm Dicks would be the ones on the chopping block.

Norm dicks is one of the house legislative leadership from Washington that has some pull on Military contracts. I think his district covers MOST of the Navy floatilla off Bangor and some other choice realty.

I'll make this statement, I think a lot of the Congress men and women from Puget Soung Regions of washington state are going to find a hard time getting re-elected unless they get some thing done about this problem.

[Chief]

What's to be done about it WB?? This is a done deal, and everyone up there knows it. DOD has the final say when it comes to selecting contractors, and unless the Congress decides to butt in, this is over except for the screaming...

[Waterbuffalo]

Could a senator or house of representative member get a bill earmarked or some thing specified into law forcing DoD to accept a contractor from a specific region or state they represent?

Yeah, I know this is a done deal. Just making suggestions for the next mega defense project? I think all the Puget Sound H & R and Senators will be under pressure to come up with some thing new or some new project for Boeing now that they didn't get this $100B project...

Developing..

[Chief]

Northrup has been named as the Prime Contractor on this project, and the only way Boeing could get a piece of it is to be hired as a Sub to make some component; but I really don't see that happening either.

Again, once the contract is let by DOD, there is little the Congress can do about it without a great deal of hard work, and a sustainable vote in both houses of Congress. And even then the bill could be vetoed by the President.

No, Boeing is good and screwed on this and it's over but for the shouting...

[Waterbuffalo]

Chief, I don't think you getting my point.. I was agreeing with you.. This contract is good as gone for Boeing. What's I am looking at is "Future" contracts that could be angling there way.

There has to be Trillions more of contracts Boeing is looking at. Heck, they have a border security fence contract with DHS? There will be more that this company will be able to angle for.

But I'd also say this is a huge black eye for Boeing. But its time to move on and haul in other big and small contracts for other things.

[Chief]

It's a huge blackeye for Boeing, and no, there are no other major military contracts pending right now. These things don't come around that often which is why they are so competative and why it's such a big, big deal to get it right the first time.

[Waterbuffalo]

I thought there were more projects like it?

Thogh there ARE piddly ones like UAV's, F-22 JSF (Joint Strike Fighter) and some others. I thought there were more Billion dollar military contracts.

No, they might not be $100B but there are enough that could keep boeing going if they really did there homework to go after them.