Boeing Wins Controversial Tanker Contract

Boeing Aircraft recently won an Air Force contract for medium sized Air-Refueling Tankers, in what was a bidding process rife with controversy.  Originally, the Northrop/EADS (Airbus) team was awarded the contract in early 2008, but Boeing contested the award, citing irregularities in the bidding process, and a change in specifications mid-process.

Boeing was allowed to re-bid the contract, once the irregularities were addressed, and came out on top in February of 2011.  The new tanker will be based on the current 767 platform.

Had Northrup/EADS retained the contract, it would have meant a significant amount of the U.S. Air Force tanker fleet would have been built in Europe. 

Many ProfitKey customers are premier Boeing suppliers. These users provide hundreds of parts for various Boeing aircraft, both commercial and military, so this bodes well for domestic aerospace manufacturers, as the first 18 tankers are valued at $30 Billion.  Potentially, as many as 50,000 American jobs could be generated as a result of the award.

Are you going to be affected by this contract?  Positively or Negatively?

Posted by Ken Hayes, Vice President, ProfitKey International

One thought on “Boeing Wins Controversial Tanker Contract

  1. rcogan

    Actually, this adversely affected us locally here in Melbourne. This contract with Grumman was going to add a significant number of high-tech and aerospace jobs here. That could have gone a long way in alleviating the pain of the big loss of jobs from the shutdown of the shuttle program. There is also the suspicion that the new bid was unfairly slanted towards the Boeing solution. Oh well, other areas gain is our loss.

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