Video: What's next for Boeing after lost tanker contract?

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EVERETT, Wash. – Roughly 24 hours after Boeing lost a $40 billion Air Force tanker contract to Northrop Grumman and a European parent company of Airbus, many still find it hard to believe.

Chicago-based Boeing, which has been supplying refueling tankers to the Air Force for nearly 50 years and had been widely expected to hang onto that monopoly, could protest the decision, though the company said no decision has been made.

In its first official response, the company said: "Obviously we are very disappointed with this outcome -- we believe we offered the Air Force the best value and lowest risk tanker for its mission … Our next step is to request a debrief with the Air Force. Once we have reviewed the details we will make a decision concerning our options."

Washington Senator Patty Murray said Saturday she's looking for answers from the military.

"The first thing that has to happen is we need to have the Air Force show Boeing exactly why their decision was made. We need to understand that," she said. "There will be a number of hearings coming up this month where the Air Force will have to talk to Congress as well and tell us why this decision was made. We will look at those facts very carefully."

In addition to the impact to the local economy, she said the decision will impact the entire country.

"If we give away our military infrastructure to be built overseas, I think that has security risks for us as well and we ought to be thinking about that, talking about it – making it part of what we do," she said.

In recent reports, analysts have said that the price and size may have been a factor for Airbus.

Boeing will find that out soon. It has 100 days to appeal the decision.

Shock, anger felt by many

A spokesman for the Society of Professional Engineering Employees in Aerospace, the union that represents about 24,000 engineers and technical workers at Boeing, said the union is disappointed.

Tom Wroblewski, president of Machinists Union District 751, was outraged at the decision, which he called ill-considered.

"Airbus does not even currently build a tanker. It is a paper airplane only, and they do not even have a factory built in the U.S. at this time," Wroblewski said. "Our members could have started building the tanker today, and we have a superior product that has already been delivered to customers."

Because of the Air Force decision, "America has to rely on a foreign country to defend our nation. This is wrong. And we will not stand silent on this issue," he said.

The Air Force said the larger size of the Northrop-EADS aircraft, based on the Airbus A330 jetliner, tipped the balance in its favor.

"The American taxpayers should be outraged. The American worker should be outraged that we're going to spend American tax dollars to buy a French-built airplane," said Larry Brown, political director for Local 751

"This is ridiculous. This is a travesty of justice and is against the American citizens. Why should we pay taxes if its going to support France," said Charlie Greser, Boeing Machinist, who works on the 767 line and was once an active duty Marine.

A few dozen workers protested outside a Machinists Union hall in Everett Friday. They had signs made up to celebrate getting the contract, but instead made up new ones, saying "American workers equal best tankers" and "Our military deserves the best."

Stosh Tomala, a flight line mechanic who has worked for Boeing for 20 years, said the workers are upset because they believe the contract should have been theirs.

Boeing initially won the contract, then lost it in 2004 in a procurement scandal that sent two top Boeing officials to prison.

"This was a locked-down deal. We're being penalized for something that wasn't our fault," Tomala said. "We have a factory, we're ready to build, we have the people, and we're going to lose jobs over this."

Boeing, the state's largest private employer, would have built the tankers, based on its 767 jetliners, at Everett, Wash.

The Air Force's decision means Boeing will eventually phase out its 767 line at the factory in Everett.

Lawmakers want answers

Senator Murray isn't the only lawmaker who is disappointed by the Air Force's decision.

"It's just a disaster," said Rep. Norm Dicks, D-Wash., one of Boeing's biggest supporters in Congress.

"I'm extremely disappointed," Dicks said. "It's just one of the worst things in my whole life. I am just shocked over this."

Gov. Chris Gregoire called the Air Force decision unfortunate for Boeing and the state of Washington.

"Boeing and its workers build the best planes in the world. They will continue to enjoy great success with their 787 Dreamliner and other innovative products still to come," she said, calling the Chicago-based company a valued corporate citizen of her state.

In a joint statement, the state's two senators and six of its nine House members said they were outraged by the choice of a European company "and its foreign workers" to provide a tanker to the U.S. military.

"This is a blow to the American aerospace industry, American workers and America's men and women in uniform," said the statement, which was issued by Dicks, Sens. Patty Murray and Maria Cantwell, and Reps. Rick Larsen, Jay Inslee, Adam Smith, Jim McDermott and Dave Reichert. All but Reichert are Democrats.