Aerial Refueling Tanker To Be Split?

Previous Entry | Next Entry
| | Comments (2) |

It seems like nearly every article I see on the refueling tanker speculates on splitting the massive contract between rivals Boeing and Northrop.


Northrop Exec: Split Award On Aerial Tanker Would Make Sense

PARIS (Dow Jones)--With $39 billion in the U.S. defense budget for a new fleet of aerial refueling tankers, Paul Meyer, vice president and manager of Northrop Grumman Corp.'s(NOC) tanker program, said he expects in July to get a detailed request for proposals from the Air Force.

In an interview Sunday ahead of a press meeting at the Paris Air Show, Meyer said a split award between Northrop, its partner Airbus, and rival Boeing Co (BA) would make sense. Although it would raise production costs by "one or two billion dollars a year," it would speed up production, Meyer said.

Defense Secretary Robert Gates is working to accelerate the long-delayed tanker program, but doesn't favor a split deal

Also at an event Sunday sponsored by the Alabama aerospace industry, Sen. Daniel Inouye (D-Hawaii), head of the senate subcommittee on defense appropriations, told Dow Jones Newswires: "That's what we're discussing now, whether to have one contractor or two."

2 Comments

I think at this point the split would make sense and under this critical time I think the Air Force could use the accelerated schedule of having both Defense Contractors get the job done.

Well, baed on current corporate wins, or should I say losses, NG can't take another loss and so a split is the best option for them....Boeing should go for sole source!!

Leave a comment

About this Entry

This page contains a single entry by Muhammed El-Hasan published on June 15, 2009 4:01 PM.

Is Toyota Stock a Bargain? was the previous entry in this blog.

Honda Insight Wins Award is the next entry in this blog.

Find recent content on the main index or look in the archives to find all content.

Powered by Movable Type 4.21-en

About Biz Waves

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

The primary contributor is:

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.

You can email Muhammed at muhammad.el-hasan@dailybreeze.com

Subscribe to RSS feed