Northrop drops out

So much for another showdown with Boeing for the massive contract to replace the Air Force fleet of refueling tankers. The L.A.-based aerospace company has decided to drop out after executives had complained that the odds were stacked against their bid. From the Washington Post:

One source briefed on the decision said that Northrop executives decided that the Pentagon's insistence on a firm, fixed-price contract would have made it hard for the company to profit from producing the new aircraft. Northrop had put in a bid to build the tanker with its partner Airbus, which is owned by Paris-based defense giant European Aeronautic Defence & Space.