Boeing Indicates It Will Stay in Tanker Race

WASHINGTON (AP) - Boeing indicated Tuesday it will remain in the competition for a disputed $35 billion Air Force tanker contract, saying talks with the Pentagon were the start of a "continuing dialogue" over the latest round of bidding on the aerial refueling plane.

Officials from both Boeing and rival Northrop Grumman met with Defense Department officials at Wright-Patterson Air Force Base in Dayton, Ohio.

Boeing said the meeting was used to understand changes in the criteria the Pentagon will use to pick a new winner.

The Air Force said a decision is expected by the end of the year on a new contract.

Northrop has said its tanker would provides thousands of new jobs in Mobile.

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