Boeing fails to land airplane contract

The United States Air Force decided Friday which aerospace company will build the military’s next refueling airplane — and the contract winner was not the one many expected.

Northrop Grumman and its partner, Airbus maker European Aeronautic Defence beat out Boeing Co. for the $40 billion contract to build 179 tankers for the military.

Many analysts predicted Boeing would win the KC-X competition — and build the plane that will eventually replace the KC-135.

Retired Lt. Gen. Dick Burpee said though Boeing has a long history with the Air Force and refueling tankers — the Chicago-based aerospace company built the KC-135 more than 50 years ago and has been on contract with the military to maintain the fleet for almost a decade — Northrop’s tanker proposition had features the Air Force could not ignore.

“I think Northrop Grumman’s airplane could carry 24 percent more fuel and it also could carry 21 percent more cargo,” Burpee said. “In other words, Northrop Grumman had more capabilities.”

Impact felt at Tinker? Boeing leaders were aware its KC-767, the tanker it proposed for the contract, was smaller and carried less fuel than Northrop’s tanker, and the company saw that as a positive aspect to its bid.

“We proposed the tanker that we think will do the better job of bringing the fuel to the fight, not just burning it,” Mark McGraw told The Oklahoman last month. McGraw is vice president of tanker programs for Boeing Integrated Defense Systems.

McGraw and other Boeing representatives feared losing the contract would have a negative impact on aviation jobs in Oklahoma, particularly at Tinker Air Force Base where about 500 employees support the KC-135 program.

Ben T. Robinson, Boeing’s KC-135 program director, said it was likely Boeing would base the KC-767 program in Oklahoma as well.

Nationwide, Boeing expected its KC-767 Advanced Tanker program to support 44,000 jobs in 40 states and 30 companies.

Burpee said Boeing’s loss does not mean jobs in Oklahoma will be lost.

“It won’t have any immediate impact on Tinker,” Burpee said. “I don’t see any job loss right now because Boeing is maintaining the current system.”

Burpee said once Northrop’s planes are built and in the system, Tinker still will sustain the airplanes, doing the same work they do on the KC-135, except it will be for Northrop Grumman instead of Boeing.

Burpee said he was glad to see the contract finally awarded so work can begin on building a new plane.

“It’s a great day for our Air Force and our country because we are flying 40-year-old airplanes and this new tanker is the Air Force’s No. 1 priority,” he said.

Northrop’s refueling airplane will be assembled in Mobile, Ala., and the project will employ 25,000 workers at 230 companies. Northrop Grumman spokesman Randy Belote said he didn’t know how many employees would be based in Oklahoma, but is confident it will be a healthy amount of jobs.

Although the Air Force has a winner, Burpee said the competition may not be over.

“There’s always the promise that this thing will be protested,” he said.

Ja’Rena Lunsford The Daily Oklahoman (MCT)- March 01, 2008