The Boeing Co. (NYSE: BA) Wins Controversial $35 Billion Contract for Refueling Tanker

In a deal expected to spark an economic boon of more than 50,000 jobs, The Boeing Co. (NYSE: BA ) last week was awarded a $35 billion contract to build a fleet of U.S. Air Force aerial refueling tankers. After 10 years of controversy and haggling in Washington, Boeing was declared the "clear winner" over European Aeronautic Defense & Space Co. (EADS), the company that builds Airbus planes. "We're honored to be given the opportunity to build the Air Force's next tanker and provide a vital capability to the men and women of our armed forces," Boeing CEO Jim McNerney said in a statement . Deputy Defense Secretary William Lynn told Politico that Boeing won the contract on the strength of its bid price, how well each of the planes would meet military needs and the cost to operate them. "This is one of the happiest days of my professional life," said Rep. Norm Dicks, D-WA, the ranking Democrat on the House Appropriations Committee. He added that a change he suggested to the method the Air Force used to evaluate the bids might have made the difference. The Pentagon considered the cost to operate the planes over 40 years rather than 25 years, he said, and since Boeing's NewGen Tanker will burn 24% less fuel than the EADS A330 plane, Boeing had a big edge.