Air Force Lifts Boeing Suspension

The Air Force reinstated Boeing Co. as a “good corporate citizen” Friday, clearing it to vie for billions of dollars in government satellite-launching business and ending the longest suspension of a major defense contractor.

“We believe that Boeing has taken significant action over the past 20 months to rectify past improprieties and to develop long-lasting integrity standards that make them eligible to compete for government launch contracts again,” said Peter Teets, acting secretary of the Air Force.

Teets said Boeing and the Air Force had signed an interim pact under which the suspension could be reinstated if Boeing was indicted or convicted or new evidence of wrongdoing is found.

Three Boeing units were suspended in July 2003 after the Air Force said the company committed “serious and substantial violations of federal law” involving the illegal acquisition of Lockheed Martin Corp.’s documents.

As part of its punishment, Boeing also was stripped of $1 billion in government rocket business and seven of its launches were shifted to Lockheed, the nation’s largest defense contractor.

Shares of Chicago-based Boeing rose 96 cents Friday to $53.38 on the New York Stock Exchange.