Boeing May Offer 777 Tanker In New Contract Bid

DANIEL LOVERING

Boeing Co. may offer a tanker version of its 777 jet in a new bid to win a $35 billion military contract to replace the Air Force's aging fleet of aerial refueling planes, a company spokesman said Wednesday.

Chicago-based Boeing and a team comprising rival Airbus' parent company, European Aeronautics Defense and Space Co., and Northrop Grumman Corp. are girding for a new round of competition for the contract to build 179 planes.

Defense Secretary Robert Gates canceled earlier bidding in September after the Government Accountability Office concluded the Air Force had unfairly penalized Boeing's smaller plane. Gates plans to restart the troubled process in the coming weeks.

Boeing spokesman William Barksdale said Wednesday the company may offer a tanker version of its popular 777 commercial jet along with the 767 it offered previously. The Northrop team's plane was based on Airbus' A330 passenger jet frame.

"It definitely is much more capable than the A330," Barksdale said in a telephone interview from Paris, where he is attending the Paris Air Show. "We've spent a lot of time not only listening to what the Air Force said to us, but also doing trade studies on what a bigger tanker would look like," he said. "If we need to offer a big tanker, then we're going to be ready to do that."