Boeing Would Accept Aerial Tanker Split

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If Northrop wins, the program would be administered through Northrop's Aerospace Systems sector in El Segundo.

Boeing open to split contract on $35B tanker deal

WASHINGTON (AP) -- Boeing Co.'s top defense executive said Wednesday the company will support splitting a $35 billion contract with rival Northrop Grumman Corp. for new Air Force refueling jets if the Pentagon chooses that approach.

Defense Secretary Robert Gates plans to try again this summer to award a contract to build 179 new tankers, the latest attempt after a series of failed tries. Some lawmakers have proposed buying planes from both Boeing and Northrop to speed up production and defuse the heated rivalry between the two big defense contractors. Gates doesn't endorse that plan.

Jim Albaugh, head of Boeing's defense unit, said it appeared the Pentagon will use a winner-take-all competition to build the plane. But the Chicago-based company will support any shift to a split contract, he added.

"We are going to support whatever type of acquisition that our customer wants to put in place," Albaugh said in a phone interview.

Read more on the aerial refueling tanker.

2 Comments

the problem with the split with boeing is
boeing is alway behind on their programs

Nortrop Won the contract the firtst time.

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This page contains a single entry by Muhammed El-Hasan published on April 22, 2009 1:31 PM.

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Biz Waves is a one-stop Web hub for business news and content from the South Bay region of Los Angeles County and beyond.

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Muhammed El-Hasan, a business reporter at the Daily Breeze since 2000, covers aerospace and everything else about business in the South Bay. Muhammed previously reported at the San Bernardino Sun and the community news division of The Orange County Register. He also worked as a researcher in the Jerusalem bureau of the Los Angeles Times in 1996-97. But his career highlight as a young man was driving a forklift at a Gardena company near Hawthorne, where he grew up.

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