Friday, February 25, 2011

Boeing Continues with Fueling contract (Seeking Alpha)

Boeing wins Pentagon contract. The Pentagon surprised investors byawarding a $30B tanker program contract to Boeing (BA), continuing Boeing's streak as the sole supplier of Air Force refueling aircraft since 1948. Many analysts had expected the Pentagon to favor a bid by EADS North America (EADSY.PK), and several lawmakers had come out in support of the EADS bid as well. Boeing's victory will likely ease the sting from its endlessly delayed Dreamliner efforts, but could potentially re-open a trans-Atlantic political controversy over whether the U.S. defense market has largely closed itself off from European defense suppliers. In after-hours trading, BA +3.9%.

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