Boeing Considers Tanker Bid Bailout - WSFA.com Montgomery Alabama news.

Boeing Considers Tanker Bid Bailout

WASHINGTON (AP) - Boeing is considering bailing out of the politically-charged bidding for a $35 billion contract to build aerial refueling tankers for the Air Force, if it does not receive an additional four months by the Pentagon to put together a competitive offer.

The aerospace manufacturer said today it also weighing filing a protest on the final bids request - expected to be released early next week - which could even further delay an award by the Defense Department.

A Boeing spokesman said no final decision will be made until Boeing has a chance to review the final bids request.

 Boeing lost the initial contract in February to Northrop Grumman and its partner European Aeronautic Defense and Space Co.

The companies previously said the aircraft would be assembled in Mobile.

A Pentagon spokesman said the department is still on track to submit its final request for bids early next week.

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

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