There’s not much to say at this juncture; Boeing says the tanker process was flawed; the Air Force and Northrop say it wasn’t. Boeing’s statements over the last couple of days generally outline its grievances, so we won’t repeat them here.
One thing we can say: the Democratic response, and that of some labor leaders, blaming Sen. John McCain for this is, we think, out of place (and we’re no supporter of McCain in his presidential bid–on the GOP side we actually liked Ron Paul). McCain stopped the 2001 tanker award because he found evidence the Air Force and Boeing acted illegally. Two Boeing executives went to jail over this deal, and Phil Condit resigned as CEO. Political posturing against McCain over this is unfair.
We’ve previously gone on record as thinking the best solution for the Air Force all along was a split buy between Boeing and Northrop. In many ways, the two airplanes can accomplish different missions. We still think so. The Congress should double any allocation to double the production rate (which makes more sense in any case). Building just 12-18 tankers a year over 10-15 years to replace airplanes that are 45 years old is too skimpy. Boeing didn’t like the idea of a split buy before. But we still think this is the best solution for the war fighter.