Boeing vs. Airbus: The Tanker Battle Resumes

http://www.businessweek.com/bwdaily/dnflash/content/sep2009/db20090916_297029.htm?chan=rss_topStories_ssi_5

 

The U.S. Air Force's effort to buy a new generation of refueling tankers has at times taken on the feel of a Tom Clancy novel. Its first deal, with Boeing (BA) back in 2004, was invalidated after an Air Force official was caught discussing a job at the aerospace firm while negotiating the contract—a transgression that ended with the officer going to jail. The military's subsequent award last year—to a partnership led by Airbus parent European Aeronautic, Defence & Space Co. and Northrop Grumman (NOC)—was later voided when Boeing convinced the General Accounting Office that the Air Force had acted inconsistently with the guidelines it had set at the start (a faux pas that prompted Defense Secretary Robert Gates to strip the Air Force of the final decision).