If you haven't already read about it, the Air Force has been trying for seven years to replace its existing KC-135 aerial refueling tankers. The KC-135s have been in service since 1957, and are simply too old.

Since 2005, two groups have been competing for the contract to replace these tankers. The first group is, naturally, Boeing. The second group is a combined effort of two companies: Northrop Grumman and the European Aeronautic Defense System company (EADS).

The tanker desinged by Northrop and EADS was $3 billion dollars less expensive than the tanker built by Boeing. The Northrop and EADS tanker was also larger and could carry more fuel, and could even be produced faster than the Boeing Tanker.