KC-X Delays Force Boeing to Reduce Workforce

(MoneyWatch)  Business Week is reporting that due to the delays in awarding the KC-X replacement tanker contract Boeing will have to reduce its work force in Wichita by 800. The job cuts will be across the board affecting white and blue collar alike. Wichita, KS is where Boeing does its military modifications and upgrades to its civil airliners. The KC-X contract was awarded to EADS last Summer. The Government Accountability Office (GAO) overturned that award after Boeing's protest and directed a new competition be held.
The Department of Defense and Air Force decided to delay any further efforts on the contract until the new administration takes over in January. Boeing still had not guarantee of winning the new competition, especially as the Air Force was looking at a larger aircraft then the 767 originally proposed by Boeing. This contract has been in the works since 2001 but had a major delay after Congress through out a lease deal originally planned by the Air Force when it came to light that Air Force and Boeing officials were colluding on awarding that contract.