Boeing May Offer 777 Tanker In New Contract Bid

The 777 tanker would be virtually the same size as the A330, but would carry 23 percent more fuel, 44 percent more cargo and 42 percent more passengers than the competing plane, Barksdale said.

If the Air Force does not want "a big, huge tanker," it could choose the 767, which remains a capable, agile widebody aircraft, he added. "We're just going to give that customer a lot to choose from."

A key technology developed for the 767 — a boom or tube that extends from under the plane's tail to refuel other jets in mid-air — can be transferred to the 777, Barksdale said.

"The challenge is going to be making sure we understand the requirements and matching up based on costs and schedule," he said.

Boeing and Airbus have been struggling with slumping orders for their planes as demand for air travel sags amid the recession. The company has announced plans to cut monthly 777 production to five planes from seven starting in June next year and delay plans to boost production of its 747-8 and 767 planes. Airlines began flying the twin-aisle 777 in 1995.