Boeing loses out on Air Force contract

February 29, 2008 4:10:47 PM PST
Chicago-based Boeing lost out in its bid for a huge contract with the United States Air Force.Northrop Grumman and the maker of Airbus planes were awarded the contract to build 179 tankers that refuel military planes in mid-flight.

The deal is worth $40 billion and is a major blow to Boeing, which has been supplying refueling tankers to the Air Force for nearly 50 years and had been expected to win the deal.