
by Frank James
As has been widely reported, the Air Force stunned almost everyone yesterday by deciding to award its huge, $35 billion contract for new airborne refueling tankers to a partnership formed by Northrop Grumman, the Los Angeles-based company, and EADS Inc., the European maker of Airbus airliners.
Boeing, headquartered in Chicago but with a large workforce in Washington State, was the big loser. Boeing had said that if it got the contract to build the new tanker based on its 767 airliner, it would provide enough work to keep 40,000 U.S. workers busy.
But Boeing lost. So the aircraft will be built in Europe, with the conversion work being done in Mobile, Ala. According to the Seattle Post-Intelligencer, the Mobile operations would employ far fewer people than Boeing says it would have, apparently 1,200 to do the modification work.

Aerospace workers protest in Everett, Wash. after the Air Force announced it chose Northrop Grumman Corp. and Airbus parent EADS over Boeing to supply air-refueling tankers, on Friday, Feb. 29, 2008. (AP Photo/Seattle Post-Intelligencer, Dan DeLong)
This is obviously not making people in Washington State happy. The Seattle P-I puts it this way:
Rep. Norm Dicks, D-Wash., a senior member of the House panel that oversees military spending, predicted "a firestorm of criticism about this decision." He said many lawmakers "don't want Airbus building this plane."
Sen. Patty Murray, D-Wash., told reporters she was "frustrated, angry and in shock at this announcement."
The state's senior senator said she couldn't understand the choice of giving a massive contract to a foreign-based business, considering that the U.S. is teetering on a recession.
"You can put an American sticker on a plane and call it American, but you can't call it American made. They are clearly going to be made overseas, and that is a factor we all have to be thinking about, whether we want American planes built overseas."
Murray said Boeing will be debriefed by the Air Force later this month on why it lost out, and the company could then appeal the decision. The Government Accountability Office then has 100 days to examine the appeal, Murray said. She said it was premature to speculate on a congressional inquiry, but added, "We clearly want to be supportive of Boeing and find out the facts."