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Report: Boeing May Not Bid on Tanker Contract

By Associated Press

Washington, DC – Shares of Boeing fell nearly 2 percent today after reports that the company is considering not bidding in the next round for the Pentagon's $35 billion airborne refueling tanker contract.

Chicago-based Boeing's shares fell $1.24 or 1.83 percent to $66.62 in late morning trading.

Aviation Week reported today that the company is ''strongly considering'' not submitting a bid for the Air Force tanker after the Pentagon issued new guidelines last week for the plane.

Boeing spokesman Dan Beck would not comment on the report, saying the company does not talk about its internal discussions.

Boeing lost the first round of bidding to rival Northrop Grumman earlier this year. But the Pentagon reopened the bidding and hopes to award a new contract by the end of the year.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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