Boeing to have second bite at tanker deal?

Boeing could well get a second chance to bid for a $40 billion US Air Force tanker contract after a ruling by a government agency.  ┬á The Government Accountability Office (GAO) has upheld Boeing's protest against the awarding of the air tanker deal to a rival consortium comprising Northrop Grumman and Airbus maker EADS. ┬á┬á "The Air Force made a number of significant errors that could have affected the outcome of what was a close competition,ÔÇØ the GAO said in a statement. "We therefore sustained Boeing's protest." ┬á┬á The GAO ruling is not binding, but it will undoubtedly put huge pressure on the Air Force to put the process out to tender again, paving the way for Boeing to win back all or part of the contract for 179 new aircraft. ┬á┬á Many US lawmakers have been angered over the possibility that US jobs could be lost to Europe, particularly with the economy so fragile. ┬á┬á The Air Force said it would review the ruling and set out its response. "The Air Force will select the best value tanker for our nation's defense, while being good stewards of the taxpayer dollar," it added.┬á┬á Despite the disappointing news, Louis Gallois, chief executive of Airbus parent firm EADS, remained upbeat. "It's important to recognize that the announcement is an evaluation of the selection process, not the merits of the aircraft," he said. ┬á┬á Northrop Grumman spokesman Randy Belote was equally steadfast. "We continue to believe that Northrop Grumman offered the most modern and capable tanker,ÔÇØ he said. ┬á┬á The contract to build 179 tanker airplanes over 15 years was awarded on February 29 to Los Angeles-based Northrop Grumman and its partner, EADS North America, a subsidiary of the European parent of Airbus.┬á┬á The Northrop/Airbus tanker that won the initial bid (the KC-30) is based on the Airbus A330, while Boeing's offering is the KC-767, based on the Boeing 767. ┬á┬á Although the impact on Boeing of losing the contract would undoubtedly be significant, a Northrop/EADS victory would bring employment to the US, too, in the shape of a new assembly plant for the planes in Mobile, Alabama. Work on that has been on hold since Boeing made its formal protest.  ┬á┬á┬á*┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *