After the market close, the US military announced that it was giving its new tanker refueling contract to Airbus parent EADS and Northrop Grumman Company NYSE: NOC). The market believed that The Boeing Company (NYSE: BA), which has been supplying tankers for years, was a lock to get the deal.
The news is a stunning turnaround for Airbus since its planes will be adapted for military use. A year ago the European airframe company was in real trouble because of product delays. But, the tables have been turned recently. Boeing has been slow getting its new Dreamliner to customers. The plane has been delayed twice.
According to The Wall Street Journal "Under the contract, the Northrop-led team will build up to 179 tankers based on the Airbus A330 jetliner." The deal is valued at $40 billion.
Shares in Boeing are down over 3% after hours and NOC is up 5.7%.
Douglas A. McIntyre is an editor at 247wallst.com.











Reader Comments (Page 1 of 1)
2-29-2008 @ 5:29PM
Murray said...
This is unbelievable !
At a time when we are on the brink of a recession, unemployment started to grow, and the EU persecuting and prosecuting our biggest companies, our government hands a foreign company a $40,000,000,000 contract.
I wonder if somebody in the Pentagon got paid off?
2-29-2008 @ 5:43PM
Ray said...
French History
Sent a sub into NYC for fuel instead of surrendering after France fell. Sub went out and refueled Nazi subs. We sank it BEFORE WW2 started for us. Shot at us for a week when we invaded Algiers. Rounded up the Jews for the Nazis. French Under ground is a Hollywood Myth. DeGaul kicked our Army out of France and quit Nato. Gave refuge to the Iatola komeni who went back to Iran and began this outlaw regime. Refused to let us over fly when we bombed Kadafi. Worked hand in glove with Saddam to help him build an atom bomb. Refused to join us in Iraq. Still working with Iran. Made the mess in Vietnam then left it to us to try to clean up. Did not send One soldier to Iraq to help us. Will not let US companies compete in Europe as they are too good. Europe (france) fines us for even trying to compete. Treats the Muslims in France badly so they have rioted several times. French have no babies so within 20 years all France will be Muslim. We will have Muslims building our aircraft as the planes last for years. Will France repair the planes? Will France sell us the repair parts if they get mad at us again? Are we nuts? Well the Guys that might have had jobs from this contract can thank McCain for this as he made us bring in Air Bus to compete.
2-29-2008 @ 6:01PM
MAL said...
THIS IS NO LONGER A WORLD OF NATIONS IT IS WORLD OF CORPORATIONS WITH LOYALTY TO THE PROFITABILITY OF THE CORPORATE NATION. INDIVIDUALS CAN BE CITIZENS BY INVESTING IN THIS NATION. YOUR STANDING IS PROPORTIONAL TO YOUR INVESTMENT. NON INVESTORS ARE THE IMMIGRANT WORK FORCE . LEADERS OF "FORMER NATIONS" ARE THE MANAGERS OFTHE NON INVESTORS
2-29-2008 @ 6:04PM
Ed said...
"French Under ground is a Hollywood Myth."
The French resistance smuggled downed Allied pilots to safety and cut German supply lines after D-Day, whack job.
2-29-2008 @ 11:02PM
Robert Houston said...
If congress lets this airforce contract with EADS go thru we should replacce every one of them.Boeing is an American company ,EADs is French-German.
I guess the airforce i people who desided to award the contract overlooked the fact that taxpayer money should should stay with an American company certainly not a french company.
2-29-2008 @ 11:29PM
johnclrdsprn said...
I do not understand this government! They complain that American companies out source too much, yet U.S. business pays the second highest corporate tax in the world. We pay enough taxes for these idiots to waste, now they erode the middle class even more by willingly employing foreign workers and companies. Who is the real enemy here? Is it terrorism and the U.S. government? Why is this government so against the people, they proclaim to serve? I do not understand!
3-01-2008 @ 7:35AM
waca107 said...
always the losers and liberals in here whine
3-01-2008 @ 9:58AM
Sam said...
vice_president@whitehouse.gov
comments@whitehouse.gov.
TELL THEM WHAT WE THINK!! PLEASE!
3-01-2008 @ 10:41AM
gary blair said...
Every American worker should walk off thier jobs in protest.Our own government has sold us out !
3-01-2008 @ 8:20PM
sjr said...
I am the proud wife of a veteran. Generations of my family have served this country. I never thought I'd see the day when "American Pride" would be sold out to the lowest bidder!!! Every American should cry out against this! Whether you are employed by Boeing or not. Thousands of lives have been sacrificed proudly, over 20 thousand have been injured, half of those life altering losses. They deserve the best equipment, gear, and aircraft not the cheapest! Of all things to say "they are tring to save "the American taxpayer" money. Every military person now currently serving is serving multiple tours. French soldiers should have been standing by our side. No loyalty, no honor, and worst of all, no allegiance! Some of our sacrifices could have been lessened, even if it was only one American life or one arm or leg gained, had they stood with us. I am disgusted! Dissappointed by the Air Forces choice! A few thousand jobs will be created in Senator Jeff Session's state (Mobile, Alabama). The majority of the plane will be built overseas and final assembly will supposedly be built here. Oh, after the infrastructure is built, which was already here and no further impact on the environment would occur. A FOREIGN plane for our American Airforce, with SOME American assembly. Look up in the sky, for it is NOT an "AMERICAN" plane. Thank you Congress, for selling our jobs out yet again to foreign workers, but worst of all, this time, for putting a price tag on American pride! For all the ridiculous earmarks you support this is the expenditure you decide to save us money on? You're all hypocrites. Senator Mcain's derision with Boeing has been duly noted.Boeing is a great company. Boeing employs over 160,000 American's and gives us the benefit to take careof our families with pride. With a"slowing economy" this certainly is no surprise for Congress to add to the problem. But maybe, they think another "rebate" will help!!!!
3-01-2008 @ 9:04PM
AML said...
I'AM DISGUSTED THAT WE ARE SETTING OURSELVES UP FOR TOTAL FOREIGN DEPENDENCE. WE DO NOT HAVE TO BE CONCERNED HOW CHINA OR RUSSIA CAN EFFECT OUR ECONOMY. WE HAVE OUR OWN COUNTRYMEN WHO WOULD SELL OUT OUR COUNTRY. AMERICAN TAXPAYERS NEED TO WAKE UP AND STOP LETTING PEOPLE CONTROL TAXPAYER DOLLARS. WE SHOULD HAVE MORE OF A SAY SO ON WHERE OUR HARD EARNED DOLLARS ARE GOING. TO ME NOTHING SHOULD BE MADE OUTSIDE OF THE UNITED STATES THAT PERTAIN TO OUR SECURITY. THIS COUNTRY SHOULD NOT BE SENDING OUR TAXPAYERS DOLLARS TO HELP A FOREIGN COMPANY GET RICHER ESPECIALLY WHEN THIS COUNTRY IS HAVING ITS OWN FINANCIAL DIFFICULTIES. I PUT A BET THAT CHINA OR RUSSIA WOULD NEVER MAKE SUCH A STUPID DECISION WHICH IS WHY THEY ARE GETTING STRONGER WHILE THE UNITED STATES IS GETTING WEAKER ECONOMICALLY AND MILITARILY. IN SOME WAYS IT IS ALSO THE FAULT OF THE AMERICAN PEOPLE, BECAUSE WE SIT BACK AND LET THINGS LIKE THIS HAPPEN.
3-02-2008 @ 8:18PM
jill said...
Why should the government buy a product that is second rate? Why would taxpayers want their tax money to buy junky Boeing products?
It is obvious that most Boeing employees are liabilities to their company and their country. It is time for these Boeing employees to go find another job, since they haven't been doing their jobs--seemingly, for a couple of years now.
The market determines business. Good products are purchased because they serve a function for the buyer. Products are not bought because the lame employees wrap themselves in American Flags and demand welfare.
Since the people at Boeing have failed in their endeavors to build a cost effective plane; now maybe it is time for these crybaby employees to shuffle off to Starbucks to see if they can make a decent cup of coffee. Or maybe Mcdonald's needs someone to sprinkle onions on hamburgers.
But please stop whining about it. People lose their jobs everyday in this country. Nobody is guaranteed anything. In case you people haven't noticed, the economy is tough on everybody, and I don't recall the government promising anybody anything.