Aerospace Group:

Air Force Says Tanker Split Buy Would Nearly Double Program Cost

DDN

Friday, June 5th, 2009

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By Marina Malenic The Air Force has projected that splitting a procurement contract for new tanker aircraft between industry rivals Boeing [BA] and Northrop Grumman [NOC] would nearly double the program's $35 billion price tag, the service's top civilian official told lawmakers yesterday. "This would double, almost, the tanker piece of the Air Force's procurement program...and we think the dual award would not make sense," Air Force Secretary Michael Donley told the Senate appropriations defense subcommittee. Defense Secretary Robert Gates…

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