Boeing to File Protest of U.S. Air Force Tanker Contract Award

Wow! What a surprise: :-)

The Boeing Company
http://www.boeing.com/news/releases/index.html
Boeing to File Protest of U.S. Air Force Tanker Contract Award

CHICAGO, March 10, 2008 -- The Boeing Company [NYSE: BA] will file
a formal protest on Tuesday asking the Government Accountability
Office (GAO) to review the decision by the U.S. Air Force to award
a contract to a team of Northrop Grumman and European Aeronautic
Defence and Space Company (EADS) to replace aerial refueling
tankers.

"Our team has taken a very close look at the tanker decision and
found serious flaws in the process that we believe warrant
appeal," said Jim McNerney, Boeing chairman, president and chief
executive officer. "This is an extraordinary step rarely taken by
our company, and one we take very seriously."

Following a debriefing on the decision by the Air Force on March
7, Boeing officials spent three days reviewing the Air Force case
for its tanker award. A rigorous analysis of the Air Force
evaluation that resulted in the Northrop/EADS contract led Boeing
to the conclusion that a protest was necessary.

"Based upon what we have seen, we continue to believe we submitted
the most capable, lowest risk, lowest Most Probable Life Cycle
Cost airplane as measured against the Air Force's Request for
Proposal," McNerney said. "We look forward to the GAO's review of
the decision."

Boeing said it would provide additional details of its case in
conjunction with the protest filing on Tuesday.