The Air Force accused Eaton Corp. of...

The Air Force accused Eaton Corp. of defaulting on a key electronics contract, saying it was canceling the order and that it would demand repayment of $39 million in progress payments. It also vowed to force the company to cover any extra costs the government incurred in finding a new contractor. The Air Force said it was terminating an $81.5-million contract awarded four years ago to Eaton’s AIL Division in Deer Park, N.Y., for development of a jet plane tactical jamming system, because Eaton’s latest estimate was that the project would cost $153 million--an overrun of $71.5 million.