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. ...