GAO Agrees That Air Force Screwed Boeing (BA) Out of Contract, But Won't Help Stock

On Wednesday, The Government Accountability Office (GAO) agreed with Boeing’s (BA) protest of the U.S. Air Force’s decision to award a $35 billion tanker contract to a consortium of rivals including Northrop Grumman Systems (NOC) and Airbus. GAO:

Air Force had made a number of significant errors that could have affected the outcome of what was a close competition between Boeing and Northrop Grumman

However, AmTech only sees a mess and what little bump Boeing receives as temporary. The tanker “program is still very uncertain and the commercial airline market health is weakening.”

The Air Force has 60 days to respond to the GAO and AmTech sees no clear indication what’s going to happen. A re-compete is possible, but they still see the situation as a “net negative” for both BA and NOC.

AmTech maintains NEUTRAL for Boeing (BA).

See Also:
Boeing (BA): Too Much Pressure From High Fuel Prices
Boeing (BA) Socked By High Oil, Flailing Airlines; Lehman Says No Worries

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