Filed under: Deals, Industry, Competitive strategy, Boeing Co (BA), Politics, Northrop Grumman (NOC)
Boeing (NYSE: BA) is thumping its chest about the likelihood that it can get Congress to reverse a deal giving a $35 billion military tanker contract to Northrop Grumman (NYSE:NOC) and EADS, the parent of Airbus.
According to Reuters Mark McGraw, a company vice president, said he was “as confident as I can be” that congressional auditors would find fault with the U.S. Air Force’s February 29 choice of the rival team. Brave words, especially when the Air Force claims that the Boeing proposal lost on every key metric for building the tanker.
Boeing is counting on members of Congress who don’t want American jobs to go overseas to push back on a contract which includes Europe-based EADS. But, it may not be that simple.
The Wall Street Journal reports that “Government contracting documents show that the U.S. Air Force preferred the size and capability of aerial refueling tankers” being offered by EADS and Northrop. The EADS Airbus 330 can carry more fuel that its Boeing competition.
Boeing is almost certainly wasting its time. No matter how much some Congressmen would like to save jobs for their districts, they cannot be seen as favoring a deal which is probably substantially inferior.
Douglas A. McIntyre is an editor at 247wallst.com.
Entries (RSS)