Northrop drops out

So much for another showdown with Boeing for the massive contract to replace the Air Force fleet of refueling tankers. The L.A.-based aerospace company has decided to drop out after executives had complained that the odds were stacked against their bid. From the Washington Post:

One source briefed on the decision said that Northrop executives decided that the Pentagon's insistence on a firm, fixed-price contract would have made it hard for the company to profit from producing the new aircraft. Northrop had put in a bid to build the tanker with its partner Airbus, which is owned by Paris-based defense giant European Aeronautic Defence & Space.


More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAX
Socal housing market going nowhere fast
Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
Recent stories:
Letter from Down Under: Welcome to the Homogenocene
One last Florida photo
Signs of Saturday: No refund
'I Am Woman,' hear them roar
Bobcat crossing

New at LA Observed
On the Media Page
Go to Media

On the Politics Page
Go to Politics
Arts and culture

Sign up for daily email from LA Observed

Enter your email address:

Delivered by FeedBurner


Advertisement
Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
LA Observed on Twitter and Facebook