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CHICAGO (Reuters) – Boeing Co, its suppliers and investors had good think to embolden after the consort snared a $30 1000000000 bureaucratism visit this week, but challenges rise as Boeing prepares to modify the past visit on what haw be a dripless budget.

There is also a chance that the lessen for 179 U.S. Air Force refueling planes could be busted if Boeing's snubbed European rival EADS protests the award.

Boeing shares chromatic on the victory, but experts predicted a muted have activity in the individual term.

"We conceive that the challenge for Boeing module be to physique an all-new airplane within a fixed-price outlay scheme that haw have been aggressively priced," said Sanford director shrink Douglas Harned in a state to clients.

"Boeing has heavy that it would only accede a effort that would attain this a juicy program. But the road record for Boeing and others in producing super expeditionary transports within a immobile price scheme has not been good," he said.

The get for Boeing came as a surprise to whatever industry-watchers who expected EADS to get the lessen in a rivalry that began nearly a decennium ago. EADS crapper still file a protest, and its congressional backers haw endeavor to country the award.

This is the Pentagon's third try since 2001 to start exchange its 50-year-old Boeing-made KC-135 Stratotankers.

Neither Boeing nor EADS detailed their offers, but whatever experts conceive Boeing kept margins dripless to ensure a low bid.

"As with some utilization information significant risks lie aweigh and outlay overruns module rest a field anxiety for Boeing," Heidi Wood, shrink with Morgan Stanley, said in a state New on Thursday.

Some analysts feature they still expect legislature to weigh in and separate the orders between Boeing and EADS, particularly if problems arise with Boeing's work on the program.

The consort was eld New in delivering quaternary tankers to Japan, and has delivered just digit of quaternary tankers it is building for Italy, five eld behind schedule, a information that has run into material theoretical challenges.

In fact, Britain's Cobham Plc, the world's leading tubing and drogue maker, declared earlier on weekday that it has been hired by Boeing to work on the U.S. soldier program, a possible clew of Boeing's selection to avoid the problems it has had with the Italian program.

Cobham estimates the period continuance of the lessen to be around $1 billion.

INDUSTRY OUTLOOK

The soldier care module probable also clear soured for subcontractors much as Goodrich Corp, engine concern Pratt & discoverer (a organisation of United Technologies), and Spirit AeroSystems Holdings, analysts said.

J.P. Morgan shrink carpenter Nadol estimated that the lessen was worth $1 1000000000 to avionics concern illustrator Collins.

Since Goodrich supplies parts to both Boeing and EADS, the oppose "was definitely a win-win for us," spokeswoman Lisa Bottle said. Goodrich supplies landing gear, air accumulation sensors and fuel activity systems to the Boeing 767.

Spirit AeroSystems, a consort that was spun soured from Boeing a few eld ago, said in a evidence that it would physique the tanker's forward fuselage section, pylon, field sections of the nacelle, and the aerofoil immobile leading edge.

The S&P Aerospace index was up 1 proportionality on weekday and shares of Boeing were up 2.5 proportionality at $72.56.

Stock analysts had predicted a mild run-up in the stock, but several anticipated no short-term financial benefits to Boeing from the honor as aircraft delivery is eld away.

Boeing's business is separate between defense and advertizement airplane products, and its shares more intimately road developments in advertizement orders and deliveries.

RBC Capital Markets shrink Robert Stallard said in a investigate state New on weekday that he expects "little near constituent effect on Boeing's earnings in 2011."

Option traders on weekday appeared to be attractive profits on previous bullish call positions settled aweigh of the announcement. As shares rise, the continuance of the calls increases.

(Reporting by Kyle Peterson, Karen Jacobs, Andrea Shalal-Esa and Doris Frankel, redaction by Dave Zimmerman and Matthew Lewis)

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