US Air Force may halt Boeing C130 upgrades-analyst

Posted on: Feb. 24th, 2006 || Source: today.reuters.com | E-mail Article | Print Article

WASHINGTON, Feb 23 (Reuters) - The U.S. Air Force is considering halting a multibillion program to upgrade the cockpit electronics of the C-130 cargo aircraft, private defense analyst Loren Thompson said on Thursday.

Chicago-based Boeing Co. (BA.N: Quote, Profile, Research) has been designing upgrade kits for C-130 cockpits under a C-130 Avionics Modernization Program (C-130 AMP) accord valued at $1 billion through 2010.

Boeing had been slated to install and produce the kits as well, work valued at around $3.5 billion.

But the Air Force decided to launch a fresh competition for that portion of the contract in 2009 or 2010 after Darleen Druyun, a convicted former top Air Force arms buyer, admitted that she improperly steered the C-130 upgrade program to Boeing before taking a $250,000-a-year job with the company.

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