WTO Airbus ruling could tilt $40 billion tanker deal to Boeing

Last Friday, the World Trade Organization (WTO) ruled that Europe provided illegal subsidies to Airbus. Now it looks like that ruling could actually have a practical benefit to Boeing (BA) -- by giving it a better shot at winning the $40 billion U.S. government contract for airborne refueling aircraft, known as tankers, that's likely to be rebid this fall.

A joint bid by EADS, the parent of Airbus, and Northrop Grumman (NOC), will compete with Boeing for this big deal that got caught up in last fall's presidential election. It still pits the American South -- particularly Northrop's operations in Alabama -- against the West, where Boeing has many facilities in Washington state.