Alabama Firm Wins Challenge of Air Force Award of KC-135 Maintenance Contract

BIRMINGHAM, Ala. (AP) - Alabama Aircraft Industries Inc., which maintains and modifies military aircraft, said Wednesday that a subsidiary has succeeded in its challenge of an aircraft maintenance contract that had been awarded to Boeing.

AAII-Birmingham filed a federal legal action on June 26 challenging the Air Force's selection of Boeing for a $1.1 billion contract to perform PDM, or programmed depot maintenance, services on KC-135 refueling tanker aircraft. Alabama Aircraft Industries said the court has set aside the award and told the Air Force it must re-solicit the procurement and take steps to address the role of an aging KC-135 fleet on the maintenance to be performed.

A Boeing spokesman Forrest said the company will review the court's decision. In midday trading, shares of Alabama Aircraft Industries jumped $1.02, or 52 percent, to $2.99.

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