Boeing set to win US air tanker deal after Northrop pulls out

The US manufacturer has taken a lead over rivals after EADS' partner in the bid Northrop Grumman pulled out, and EADS stated it would not bid alone.

The contract is said to be worth $40 billion, with $100 possible over the length of the contract.

Meanwhile EADS, who also manufacturer Airbuses in competition with Boeing's airplanes, said that they had fallen to a £752 million euro loss from its superjumbo A380 project and A400M (military transport).

The company told shareholders last week that it would be forced to take a hit of 1.8 bn euros on the new A400 project, whilst its superjumbo is expected to 'weigh heavily' for a number of years.

Boeing on the other hand will bolster its position as number one in the aerospace and defence sector, after posting full year operating margins of 9.4 percent, compared with EADS' -2 percent margins posted today.

Boeing also has the advantage of being 'lightweight' with operating cash flows increased, while its commercial order book remains unhampered by any loss-making planes - it's 777 continues to be profitable.

Meanwhile orders for the 'Dreamliner' 787 are strong (851) with its delivery expected 4Q 2010, along with the 747-8.

Boeing's share price is up around 50 cents in premarketing trading whilst EADS is down 0.73 euros in Paris.

Britain also, is expected to lose £4.6 billion from the loss of the EADS deal as the UK's Airbus staff will not need to be increased at the Broughton factory where EADS operates.