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Dennis Muilenburg, president and CEO of Boeing's defense business, declined to say how much Boeing cut its anticipated profits with its final offer. "Clearly we've been focused on affordability," he said, adding that Boeing will be able to make the plane more cheaply because it will use the same production line as its civilian version. The award gives Boeing the initial $3.5 billion for engineering, manufacturing and development of the first four aircraft, with 18 planes to be delivered to the Air Force by 2017. The $35 billion contract for 179 planes could be a first installment on a $100 billion deal if the Air Force decides to buy more. Boeing will have to move fast to get the plane ready, at a time when its commercial aircraft division is still trying to deliver the new 787 and a new version of the 747. The company is completing a new 767 assembly line in Everett to provide more room to make the long-delayed 787, but also in hopes of a contract win. Boeing has 49 unfilled orders for 767s, the initial versions of which first flew in the early 1980s, and plans to be making two planes a month later this year. The contract will support about 50,000 total U.S. jobs with Boeing and some 800 suppliers in more than 40 states, the company says. For Washington state alone, Boeing has said it would mean 11,000 jobs and $693 million in annual economic benefits. It will bring 7,500 new jobs and an estimated $388 million to Kansas "at a time when the aviation industry and our nation needs them the most," said Sen. Pat Roberts, R-Kan. "I'm in the middle of a blizzard but it's all blue skies," he said. "This is good for America. This is good for our community. What more can we ask for?" said Wichita Mayor Carl Brewer, a former Boeing engineer. Dicks called Thursday "the happiest day of my professional life." Union leaders said the contract will mean long-term stability for aircraft workers. Redrup said it also means older workers will be able to pass along critical skills to a new generation. That knowledge, he said, "gives us a huge advantage." Over the years, efforts to award the contract have been thwarted by Pentagon bungling and the criminal conviction of a top Defense Department official. The Air Force at first planned to lease and buy Boeing planes for tankers, but that fell through. It later awarded a contract to Northrop Grumman Corp. and EADS, but in 2008 the Government Accountability Office upheld Boeing's protest. The Air Force reopened bidding last year, only to be embarrassed again as it mistakenly gave Boeing and EADS sensitive information that contained each other's confidential bids. Boeing promoted its "American-made" tanker, though both companies had planned to build their planes in the United States. EADS, which bases its tanker on its Airbus A330 passenger jet, has 11 of its tankers in production and 28 more on order for countries including Australia and Britain. The two companies have bickered over whether they received unfair subsidies from the governments in their home countries. Last month, the European Union said the World Trade Organization found U.S. aid to Boeing Co. violated international rules. Last year, the WTO ruled that trade rules were broken by Europe's "launch aid" to Airbus, including virtually risk-free loans as well as other support. Boeing's share price jumped $2.44, or about 2.5 percent, to $73.20 on the news.
[Associated
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