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Airbus | Boeing | Industry & Trends | Northrop-Grumman | Specialty Aircraft | USA

USAF to Boeing, NGC: “Don’t Make Us Come Back There”

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(click to view full) Reuters reports that the USAF met last week with Boeing and Northrop Grumman’s CEOs “to voice concern about the “vitriolic” tone of public statements over a $35 billion refueling aircraft program.” Particular concern was expressed regarding Boeing’s allegations of irregularities in the USAF’s KC-X competition process. Defense analyst Loren Thompson, of the Virginia-based Lexington Institute went so far as to say that: “The tone of the tanker debate has turned so negative that Air Force leaders are concerned that it could damage their long-term relationship with Boeing.” Analysis: The effect of this meeting, if any, will depend on Boeing’s assessment of a straightforward question: If the potential prize is nearly $20 billion in work over 20 years, how much strain on their long-term relationship with the USAF becomes an acceptable risk in the current environment? Industry trends are also playing a role… Irregularities in the process are a key facet of Boeing’s GAO appeal, and also of the parallel political campaign required to change the decision. Which is why it features in the ad example displayed with this article. Without that element, Boeing’s complaint amounts to criticism of the customer’s decision criteria. True to recent trends, […]

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