U.S. Air Force To Remain Cautious In Dealing With Boeing (NOC, BA)

Northrop Grumman (NYSE: NOC) has withdrawn its candidature for a US aerial refueling aircraft contract. The contract is worth approximately $50 billion.

The defense contractor has accused the United States Air Force of favoring Boeing (NYSE: BA), which is now a leading contender for the contract. However, Airbus, which was earlier collaborating with Northrop, may still compete for the contract.

US Defense Secretary Robert Gates said, “"We will certainly be sharpening our pencil when it comes to negotiating with Boeing." Gates also said that he does not expect any delays in conclusion of the deal.