Tuesday, February 28, 2012

Termination fee still unsettled

Four years after Northrop Grumman and EADS won a contract to build tankers for the Air Force -- a contract canceled 11 days later -- a termination fee is still unsettled, according to Air Force Times. Under the 2008 award, EADS planned to assemble the planes in Mobile, Ala. It also started work on the airframes. But the contract was overturned and Boeing eventually won the new competition. The Air Force still partly owns two Airbus A330 airframes built as part of the original contract. One is in storage in Spain and the other in France. Air Force officials said they expect the contract termination issues to be settled soon. (Source: Air Force Times, 02/28/12)