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Boeing to reconsider bidding for tanker contract

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Latest update : 2008-08-12

After losing out to EADS and subsequently winning the case for reopening the highly lucrative US Air Force mid-air refueling tankers bid, Boeing is considering not bidding for the contract.

Boeing is considering not rebidding for a huge US Air Force tanker contract lost to competitors EADS and Northrop Grumman, according to a report in the aerospace industry magazine Aviation Week.

Shares of Boeing fell nearly 2 percent on Monday, after reports that the company is considering not bidding in the next round of the 35-billion dollar contract to replace the U.S. Air Force's fleet of mid-air refueling tankers.

Boeing lost the first round of bidding to rivals EADS and Northrop Grumman earlier this year. But the Pentagon decided to reopen the bidding after Congressional auditors found significant errors in the Air Force's handling of the process.

Aviation Week is reporting that Boeing is "strongly considering" not bidding on the upcoming competition. 

 

Watch FRANCE 24’s interview with Amy Butler, military editor at Aviation Week & Space Technology, by clicking ‘Play Video’ above.

Date created : 2008-08-12

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