Boeing Lands $35 Billion Tanker Contract -- and a New Lease on Life

Boeing (BA) has won the contract to build a new U.S. military aerial refueling tanker after a review by the Air Force. The government decision ended the efforts of rival European Aeronautic Defence and Space Co. (EADS) to handle the project.

Boeing said in a statement, "The U.S. Air Force announced Thursday that it has selected Boeing's NewGen Tanker to be its new KC-46A air refueling jet.The contract award, which follows a rigorous Air Force review of industry proposals, means Boeing will build the next-generation tanker that will replace 179 of the service's 1950s-era KC-135s."

Boeing will deliver 18 of the planes by 2017. Industry experts believe the value of the first stage of the contract is about $35 billion.

The Air Force awarded a similar contract to Boeing in 2003, but a scandal over the procurement procedure led to the prosecution of a Defense Department official and a Boeing executive. The contract was put out for bid again.

The contract could give Boeing a chance to restore its tarnished reputation. It has announced numerous delays of its 787 Dreamliner due to design and production issues, as well as labor unrest. Boeing still has not delivered the aircraft, although it's scheduled to do so shortly. The delay has angered both investors and large airlines that have orders for the fuel-efficient planes. These carriers have had to make alternative plans, and some have canceled or threatened to cancel their 787 orders.

Now the challenge for Boeing is whether it can deliver the tanker on time.

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Thank god this is not going to alabama though theme souther states get to much fed money already compared to the taxes they payin.Then they scream about big govt.

February 27 2011 at 12:54 PM Report abuse -1 rate up rate down Reply

The defense budget is the biggest govt welfare program out there.

February 27 2011 at 12:50 PM Report abuse -1 rate up rate down Reply

Cancel the $35 billion tanker contract and the federal governmnt can save taxpayers $35 billion!! More pork defense spending.

February 26 2011 at 9:21 PM Report abuse -1 rate up rate down Reply

Thank God the G.O.P Took over the house and put the

dem. leaders backin the barn, out of there A-hole mouths came crap like a calf with a bad case of scoures...

February 26 2011 at 3:44 PM Report abuse rate up rate down Reply

Stimulus money at work, I don't think it will hurt Boeing. But critics will not stop trashing the outcome of the stimulus package.

February 26 2011 at 8:55 AM Report abuse -3 rate up rate down Reply

To Dear Moon and your type will forever be un-informed and filled with ignorance. If you would just take the time to understand the real truths and facts without such bias and hatefull beliefs.
So often, the "sheep" just continue to "regurgitate" what they are fed.

February 25 2011 at 8:45 PM Report abuse -2 rate up rate down Reply

Thumbs up for our government buying American. If they spend our tax money, they might as well leave it here in our country!!

February 25 2011 at 3:24 PM Report abuse +4 rate up rate down Reply

What the HELL are we doing buying a new plane of ANY kind, we are BROKE!! Government is living beyond our Means, we need major CUTS! not spending! Wake up!

February 25 2011 at 2:52 PM Report abuse -3 rate up rate down Reply
1 reply to ladn4b's comment

I thought that creating (or keeping) jobs what such contracts do is still one the highest priorities. Not to mention this can help protect Alaska from invasion of Russians aka Marsians.

February 26 2011 at 8:57 AM Report abuse -1 rate up rate down Reply

I am glad to see that this issue has been resolved and that Boeing, an American company, will be building tankers for the U.S. Air Force. What were the lame brains in our government and the Pentagon thinking when they awarded the contract to a foreign company. What next, will we be having the Russians make our Navy ships and maybe the Iraqis make our Army rifles? The defense of our country and the manufacture of the weapons and material needed must stay exclusively within our country. Now, I hope to high heaven that Boeing does not outsource most of the components to other countries. That will be no different than giving the contract to Airbus.

February 25 2011 at 2:40 PM Report abuse +7 rate up rate down Reply
1 reply to tomferrigan's comment

Good point. Boeing will definately outsource a lot of work to other countries to maximize shareholders = their own pockets with tax payers money. Same old greed.

February 26 2011 at 9:00 AM Report abuse -1 rate up rate down Reply

Jobs here is a good thing. Shameful comments from Republicans in the south who would rather have a European company build U.S. planes just so they could have a few jobs on the East Coast.

February 25 2011 at 1:11 PM Report abuse -2 rate up rate down Reply
2 replies to psignspdq's comment

What part of we're broke can't you understand?

February 25 2011 at 1:57 PM Report abuse -2 rate up rate down Reply

If you're a Dem just run away.

February 25 2011 at 1:58 PM Report abuse +5 rate up rate down Reply