Boeing has a 777 tanker ready in case the Air Force wants a bigger refueling plane

Published 8:26 pm Monday, June 15, 2009

EVERETT — The Boeing Co. isn’t banking solely on a 767-based tanker offering for the U.S. Air Force.

Instead, Boeing also is looking to pitch a tanker derived from its larger 777 widebody jet, assembled here in Everett, for the ­multibillion-dollar contract, Boeing’s Jim Albaugh told reporters Monday. Albaugh and other Boeing executives are at the Paris Air Show. Albaugh’s comments were available via a podcast on the company’s Web site.

“We don’t know if there’s going to be a requirement for a larger airplane or a smaller airplane,” Albaugh said.

The Air Force is expected to release its requirements this summer. Last year, the Air Force selected Northrop Grumman and EADS’ KC-30 tanker over Boeing’s KC-767. But the Pentagon eventually called the award off after finding problems with the competition.

The KC-30 is based on the Airbus A330 commercial jet. EADS is the parent company of Airbus. The A330 is more similarly sized with Boeing’s 777 than the smaller 767. Final assembly on the KC-30 would take place in Mobile, Ala.

Depending on the Air Force’s requirements, Boeing is ready to put forth either the 777 or 767, Albaugh said. If the Air Force seeks a smaller, capable flexible airplane, Boeing will offer the KC-767, he said.

“If they want a larger airplane with maximum fuel off-load, then we’ve got the 777,” Albaugh said.

Boeing has re-dubbed its tanker program the KC-7A7.

Northrop officials also held a briefing on the KC-30. Although company executives have said they believe Northrop will win the contract again, they also say Northrop is willing to split the $35 billion deal with Boeing.

The Los Angeles-based Northrop, in fact, has researched the costs to taxpayers of a split buy. In the long run, the company says a dual award would save American taxpayers several billions of dollars. A dual award allows the Air Force to retire earlier its aging KC-135 fleet, which requires extensive maintenance costs to keep the nearly 50-year-old tankers in the air.

Defense Secretary Robert Gates, however, has said he doesn’t like the idea of splitting the award between Boeing and Northrop. Gates, and Air Force Secretary Michael Donley, reiterated their opposition to a split contract during a congressional hearing in early June.

“This would double, almost, the tanker piece of the Air Force’s procurement program … and we think the dual award would not make sense,” Donley said.

Michelle Dunlop: 425-339-3454, mdunlop@heraldnet.com.