Boeing shares fall on tanker report

WASHINGTON -- Shares of Boeing Company fell nearly two percent after reports that it's considering not bidding in the next round for the Pentagon's $35 billion airborne refueling tanker contract.

Chicago-based Boeing's shares fell $1.24 or 1.83 percent to $66.62 in late morning trading.

Aviation Week today reported that the company is "strongly considering" not submitting a bid for the Air Force tanker after the Pentagon issued new guidelines last week for the plane.

The report cited unnamed sources familiar with Boeing's internal strategy.

Boeing's Capitol Hill supporters have complained that the new rules favor Northrop's larger plane and give Boeing little time to make any changes to its original proposal.

Boeing spokesman Dan Beck wouldn't comment on the report, saying the company doesn't talk about its internal discussions.