Boeing CEO Says He Won't Bid Too Low on Tanker - Spokane, North Idaho News & Weather KHQ.com

Boeing CEO Says He Won't Bid Too Low on Tanker

SEATTLE, Wash. - The CEO of Boeing says the chances are "very high" that his company will bid to make a new tanker plane for the Air Force. He also wants to be sure Boeing doesn't bid too low and put its financial performance at risk.

Bids are expected by July 9 from both Boeing and European Aeronautic Defence and Space Company, parent of Airbus. Boeing Co. CEO Jim McNerney said Thursday that he won't bid too
low just to win the deal. He told analysts that it's possible Boeing could lose because it won't bid low enough.

The Air Force wants 179 new tankers, under a contract that could be worth roughly $35 billion. It's a fixed-price contract, meaning the contractor absorbs much of the risk if costs are higher than
expected.

 

(Copyright 2010 by The Associated Press.  All Rights Reserved.)
    

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