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...Irate lawmakers this week threatened to delay the contract because they believe the Air Force unfairly tilted the award to the European firm - a charge the Air Force rejects. Boeing has said it may launch a formal protest after it gets an Air Force briefing explaining the decision on Friday. The initial contract is for 179 planes over 15 years to refuel the Pentagon's fighters and bombers in mid-air. Ultimately, it could balloon to 500 planes worth about $100 billion...

Author: /time Magazine | Title: Air Force Snub Good for Boeing | 3/7/2008 | See Source »

...notion that military spending is all about national defense rather than hometown pork is being seriously tested by the firestorm triggered by last week's awarding of a $40 billion Air Force contract to a joint venture including the European parent of Airbus. The European Aeronautic Defense and Space Corporation and the U.S.-based Northrop Grumman beat out Boeing in the race to supply aerial tankers, making a foreign corporation responsible for a key piece of U.S. military hardware...

Author: /time Magazine | Title: Air Force Snub Good for Boeing | 3/7/2008 | See Source »

...Boeing's backers on Capitol Hill argue that the Air Force should have factored in damage to the U.S. industrial base - and the loss of American jobs - by letting the contract to the foreign firm. (The Airbus team claims its deal will support 25,000 U.S. jobs, but Boeing says it would have created more.) Underscoring the sensitivity of the topic on Capitol Hill, a top Air Force official addressing a House hearing on Wednesday referred to the winning bid using only the name of its American partner. "Northrop Grumman brought their A-game" to the competition, said Air Force...

Author: /time Magazine | Title: Air Force Snub Good for Boeing | 3/7/2008 | See Source »

...real problem on the Boeing side of the argument is that no one protested Airbus' role as one of two contenders for the contract when everyone thought Boeing had the deal sewn up. In other words, they liked the appearance of competition, but not its reality...

Author: /time Magazine | Title: Air Force Snub Good for Boeing | 3/7/2008 | See Source »

...best buy. It wasn't so long ago that Boeing could count on the McDonnell Douglas Aircraft Co. to keep it honest in dealings with the Pentagon. After all, that esteemed company built the KC-10 tanker for the Pentagon a generation ago, after beating out Boeing for that contract...

Author: /time Magazine | Title: Air Force Snub Good for Boeing | 3/7/2008 | See Source »

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