Should Boeing give up tanker fight?

Published 6:33 am Wednesday, March 5, 2008

Analysts say Boeing doesn’t stand much of a chance protesting its loss of a $35 billion tanker deal from the U.S. Air Force.

JSA Research’s Paul Nisbet suggests that Boeing’s loss to Northrop Grumman-EADS gives the Chicago-based Boeing the opportunity to focus on bringing its delayed 787 Dreamliner up to speed.

And one unnamed source tells BusinessWeek that Boeing may not want to “aggravate” the Air Force with a protest that creates a delay in answering the military’s needs.

The Pentagon snub means an eventual shutdown of Boeing’s 767 commercial production line in Everett.

The House Appropriations Defense subcommittee will hear from the Air Force this morning. And Boeing will get an expedited debriefing from the Air Force tomorrow.

In the meantime, what do you think Boeing should do? Why? Feel free to comment on this blog post.