Boeing Co said late on Friday it would give "serious consideration" over the weekend to filing a formal protest of the US Air Force's decision to award a US$35 billion tanker contract to European Aeronautic Defence and Space Co (EADS) and Northrop Grumman Corp.
Following a debriefing by Air Force officials on Friday, Boeing said in a statement that reports of it losing the competition by a wide margin were inaccurate.
Mark McGraw, a Boeing vice president and program manager of the aerial refueling tanker program, also said company officials had "significant concerns about the process in several areas, including program requirements related to capabilities, cost and risk, evaluation of the bids and the ultimate decision."
The previous week, the Air Force had surprised most people paying attention to the high-stakes contract by announcing that EADS, the parent of Boeing rival Airbus, and Northrop Grumman of Los Angeles would replace the first 179 planes in its aging fleet of nearly 600 air-to-air refueling tankers.
The decision sparked a fierce backlash on Capitol Hill, led by lawmakers from states that would have gained jobs had Boeing won the contract.
If Boeing decides to appeal the decision, the protest would go to the Government Accountability Office.
Separately, supply chain troubles and production problems could force Boeing to further delay the first flight of its new 787 jetliner, analysts said on Friday.
Boeing said it was evaluating the schedule, but that its goal was still to power up the plane early next month and send it on its first flight by the end of June.
In January, the aircraft maker announced a third major delay in the 787 program, pushing the delivery date for the first plane into early next year and saying it would assess its timeline for getting the aircraft off the ground.
Goldman Sachs analyst Richard Safran wrote in a note to investors on Friday that he expected 787 deliveries to be delayed, possibly into the third quarter of next year.
"Boeing continues to underestimate the amount of work required on the 787," Safran wrote. The analyst cut his expectations for deliveries next year to 50 planes from 80.
Boeing spokeswoman Yvonne Leach said deliveries could happen early next year and that the assessment was incomplete.
The company has received orders for about 850 of the 787 from more than 50 customers.
BYPASSING CHINA TARIFFS: In the first five months of this year, Foxconn sent US$4.4bn of iPhones to the US from India, compared with US$3.7bn in the whole of last year Nearly all the iPhones exported by Foxconn Technology Group (富士康科技集團) from India went to the US between March and last month, customs data showed, far above last year’s average of 50 percent and a clear sign of Apple Inc’s efforts to bypass high US tariffs imposed on China. The numbers, being reported by Reuters for the first time, show that Apple has realigned its India exports to almost exclusively serve the US market, when previously the devices were more widely distributed to nations including the Netherlands and the Czech Republic. During March to last month, Foxconn, known as Hon Hai Precision Industry
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and the University of Tokyo (UTokyo) yesterday announced the launch of the TSMC-UTokyo Lab to promote advanced semiconductor research, education and talent development. The lab is TSMC’s first laboratory collaboration with a university outside Taiwan, the company said in a statement. The lab would leverage “the extensive knowledge, experience, and creativity” of both institutions, the company said. It is located in the Asano Section of UTokyo’s Hongo, Tokyo, campus and would be managed by UTokyo faculty, guided by directors from UTokyo and TSMC, the company said. TSMC began working with UTokyo in 2019, resulting in 21 research projects,
Taiwan’s property market is entering a freeze, with mortgage activity across the nation’s six largest cities plummeting in the first quarter, H&B Realty Co (住商不動產) said yesterday, citing mounting pressure on housing demand amid tighter lending rules and regulatory curbs. Mortgage applications in Taipei, New Taipei City, Taoyuan, Taichung, Tainan and Kaohsiung totaled 28,078 from January to March, a sharp 36.3 percent decline from 44,082 in the same period last year, the nation’s largest real-estate brokerage by franchise said, citing data from the Joint Credit Information Center (JCIC, 聯徵中心). “The simultaneous decline across all six cities reflects just how drastically the market
Ashton Hall’s morning routine involves dunking his head in iced Saratoga Spring Water. For the company that sells the bottled water — Hall’s brand of choice for drinking, brushing his teeth and submerging himself — that is fantastic news. “We’re so thankful to this incredible fitness influencer called Ashton Hall,” Saratoga owner Primo Brands Corp’s CEO Robbert Rietbroek said on an earnings call after Hall’s morning routine video went viral. “He really helped put our brand on the map.” Primo Brands, which was not affiliated with Hall when he made his video, is among the increasing number of companies benefiting from influencer