Northrop/Airbus to Boeing: Here's why you lost tanker deal

Boeing Co. lost the competition to build a new U.S. Air Force tanker because the competing bid was superior, according to Northrop Grumman Corp. and Airbus, which won the bid to build the new aerial refueling plane.

The U.S Air Force chose the KC-45 tanker based on the Airbus A330in February, and in March, Boeingofficially filed a formal protestwith the U.S. Government Accountability Office (GAO) regarding the Air Force's decision.

Los Angeles-based Northrop Grumman (NYSE: NOC) said the Air Force chose its bid because it was "superior to Boeing's in four of the five most important selection criteria."

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"The KC-45 provided superior operational performance in realistic combat scenarios. The Air Force concluded that Northrop Grumman's ability to fulfill future mission needs using fewer aircraft -- at lower cost -- 'Was a discriminator' in the Air Force's ultimate decision that Northrop Grumman's bid provided better value than Boeing's offering," Northrop Grumman wrote in a statement.