Boeing (NYSE: BA) made an official complaint with the Government Accountability Office about a $35 billion Air Force tanker deal which it did not get. The deal went to Northrop Grumman (NYSE: NOC) and French-based EADS.
All information out of the Air Force shows that the bidding process was reasonable and that the Northrop group got the deal on its merits. Boeing is hoping to sway Congress to reverse the contract because it would cause some of the jobs for the work to go abroad to Europe. In other words, it does not matter whether Boeing can do good work at a reasonable price. Legislators get to stay in their seats if they bring home the bacon to their districts. The most vocal complaints have come from law-makers who represent regions with big Boeing plants.
Congress needs to be careful. Boeing has tens of billions of dollars of contracts to deliver commercial jets to flag carriers in Europe. If the EU sees the decision on the tanker as one driven strictly by politics and Boeing gets the assignment, a lot of the purchase deals for Boeing products could be canceled by EU nations.
Douglas A. McIntyre
Smart Investors Are Quietly Loading Up on These “Dividend Legends” (Sponsored)
If you want your portfolio to pay you cash like clockwork, it’s time to stop blindly following conventional wisdom like relying on Dividend Aristocrats. There’s a better option, and we want to show you. We’re offering a brand-new report on 2 stocks we believe offer the rare combination of a high dividend yield and significant stock appreciation upside. If you’re tired of feeling one step behind in this market, this free report is a must-read for you.
Click here to download your FREE copy of “2 Dividend Legends to Hold Forever” and start improving your portfolio today.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
