Boeing weighs contract fight

Boeing Co. said Friday that it would seriously consider challenging a U.S. Air Force decision to give a $40-billion aerial tanker program to a team that includes its European archrival Airbus.

After receiving an Air Force briefing on the victory of Century City-based Northrop Grumman Corp. and its partner Airbus, Boeing executives said they were left with “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.”

Boeing added in a statement that it would take the next few days to evaluate the data presented and would give “serious consideration to filing a protest.”

Separately, some analysts said Friday that supply chain and production problems might force Boeing to further delay the first flight of its 787 jetliner.

Boeing said it was evaluating the schedule but its goal was still to power up the plane in early April and send it on its first flight by the end of June.

Worried investors sent shares of Chicago-based Boeing down $2.91, to $76.60.

In January, the aircraft maker announced a third major delay in the 787 program, pushing the delivery date for the first plane into early 2009 and saying it would assess its timeline for getting the aircraft off the ground.

Boeing isn’t expected to announce the outcome of its review until the end of the month, but analysts said Friday that they were hearing that another delay was in the cards.

“I definitely have been hearing that,” said Scott Hamilton, of aviation analyst group Leeham Cos. “Boeing was far too aggressive in its original production schedule and failed to take into account the groundbreaking technology of the airplane and the complexities of the production model.”

Hamilton said that he was confident that Boeing would work out the issues but that airlines and leasing companies waiting for their new planes wouldn’t be happy in the meantime.