Boeing stock drops on reports it won’t submit tanker bid
WASHINGTON
Boeing’s shares closed into disgrace $1.24 at $66.62.
Aviation Week reported today that the crew is “strongly considering” not submitting a bid with a view to the Air Force tanker after the Pentagon issued new guidelines last week for the flat. The give an account of cited unnamed sources familiar through Boeing’s internal strategetics.
Boeing’s Capitol Hill supporters have complained that the new rules favor Northrop Grumman’s larger plane and give Boeing slender age to make any changes to its primordial proposal.
Boeing spokesman Dan Beck would not comment on the report, aphorism the company does not prattle about its internal discussions. He said Boeing submitted its reply Sunday to the draft request for proposal the Pentagon oddity out last week and will meet Tuesday with Pentagon officials to discuss the new guidelines.
Boeing lost the first round of bidding earlier this year to a contend with team made up of Northrop Grumman and Airbus parent European Aeronautic Defence & Space (EADS), but the Government Accountability Office later ruled that the Air Force had committed several errors in awarding the contract. The Pentagon unhesitating to reopen the bidding and hopes to award a just discovered concordat by the end of the year.
The new request for terms proposed declared the Pentagon will give “adscititious value” to a plane that can carry more fuel than is required. Boeing’s supporters, especially those from the company’s industrial base in Washington state, say that unfairly favors the larger Northrop-EADS plane. George Behan, a prolocutor for Norm Dicks, D-Wash., said the timeline of the new contract award will make it hard for Boeing to present a bigger plane.
Northrop made similar no-bid threats during the initial round of bidding because of what it notion were unfavorable terms in the Pentagon’s guidelines.
Shares of Boeing have ranged betwixt $60.77 and $107.15 over the past 52 weeks.
