Northrop Grumman has backed out of the bidding process for the $35 billion contract to supply the Air Force with the replacement aircraft for the venerable KC-135 tanker. The decision, announced March 8 by Northrop president Wes Bush, virtually assures that Boeing Co. will procure the tanker contract. The Air Force’s selection methodology "clearly favors Boeing’s smaller refueling tanker and does not provide adequate value recognition of the added capability of a larger tanker, precluding us from any competitive opportunity," Bush said in the statement. Northrop’s prototype tanker, which would have been built under a joint agreement with the European aircraft manufacturer EADS, would have been based on the A330 Airbus airframe. Boeing’s offering is based on the 767 commercial airliner.
