Boeing Deciding Whether To Appeal Air Force Tanker Contract

SEATTLE (AP) — Boeing may decide this week whether to appeal the Air Force decision to spend a $35 billion air tanker contract on Airbus planes.

Boeing was briefed Friday on the decision and an appeal would go to the Government Accountability Office.

The contract for 179 planes was won by EADS, the European Aeronautic Defence and Space company in a venture with Northrop Grumman. The Airbus plane will be modified at a new factory in Alabama. Including General Electric engines, about 60 percent of the plane will be built in the United States.

Boeing wanted to use its 767, assembled in Everett and modified in Wichita. Major parts come from Japan and Italy. Boeing estimates that about 85 percent of its tanker would have been made in the USA.