Boeing may have strong case, analysts say

CHICAGO, March 12 (UPI) -- Chicago aerospace giant Boeing may have a case that the U.S Air Force awarded a $40 billion contract to the wrong company, analysts said Wednesday.

The contract went to the Northrop Grumman and the European Aeronautic Defense and Space Co. in February.

Boeing filed a formal protest Tuesday.

Industry analysts said the larger Northrop-EADS aircraft would require new infrastructure at Air Force facilities.

Boeing contends an earlier war-games simulation should have disqualified Northrop-EADS, since ramps were added to make room for the bigger plane.

The Air Force also based their decision on extra cargo the rival Airbus plane could carry, although that was not discussed previously as a determining factor, Boeing contends.

Northrop-EADS has ramped up its public relations battle, declaring the four assembly plants they will build in the United States will create 48,000 U.S. jobs if construction jobs are counted, the Chicago Tribune reported.

It had previously claimed 25,000 jobs would be created, while Boeing said they would create 44,000 jobs.

Boeing has "a really compelling argument about the Air Force infrastructure and all the knock-on costs" said Howard Rubel, an aerospace analyst with Jefferies & Co.

"Welcome to the great debate season," another industry analyst said.