Northrop “Grounds” Work On Tanker

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Northrop Grumman updated analysts with a conference call on the KC-45 tanker program–the $35 billion contract Northrop and EADS beat out Boeing to win, CNBC reports.

Boeing Boeing Co. said it has completely stopped work on the tanker until a review of the protest is completed by the Government Accounting Office. That review should be done by June 23rd, and if the deal still stands, Northrop will get back to work.


Northrop executives were blunt: Boeing is a poor loser. “Did you want an open and fair competition?” said Gaston Kent, VP of Investor Relations. “We got that, and we won.” He said an earlier attempt by the Air Force to strike a tanker deal with Boeing (the one that ended in scandal) wasn’t a competition, “and it failed.”


The company also took on the political assault its suffered for partnering with a European company accused of unfair government subsidies. Northrop says all the uproar about French involvement in the new tanker is overblown. The French are putting in “about 13 percent” of the content in the new tanker.


Read the full CNBC story

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