Boeing considers exiting US Air Force tanker rebidding

0 Comments | AFP, August, 2008

WASHINGTON (AFP) — US aerospace giant Boeing said Friday it may exit the rebidding for a massive contract to build US Air Force aerial refueling tankers unless the Pentagon allows more time to rework its proposal.

The Department of Defense (DoD) was forced in June to rebid the 35-billion-dollar contract after congressional auditors found flaws in the air force's decision to award it to Northrop Grumman and its European partner EADS.

Boeing's loss of the contest in February to rival Northrop and the European Aeronautic Defence and Space Company, parent of Airbus, raised protectionist hackles in the US Congress and shocked the market. Boeing has been the sole supplier of the refueling tankers.

The Pentagon contract is for 179 aircraft, the initial phase of a...