Boeing likely to propose its 767 tanker

  • By Michelle Dunlop / Herald Writer
  • Wednesday, January 31, 2007 9:00pm
  • Business

EVERETT -When the Boeing Co. bids on a multimillion dollar aerial refueling tanker contract, it likely will offer up a version of its commercial 767 jet.

“It’s headed in that direction,” said Jim McNerney, Boeing’s chief executive.

Just a day after the Air Force released its requirements for replacing the agency’s aging KC-135 fleet, similar to Boeing’s long-retired 707 line, McNerney seemed to indicate that the company would stick with its initial 767 offering. Last fall, Boeing officials suggested they might put forth a tanker based on the 777 if the government wanted a bigger platform.

Winning the Air Force contract would breathe new life into the dwindling 767 commercial production line in Everett.

“By and large, we feel pretty well positioned,” McNerney said.

Several analysts have speculated that Boeing’s 767 fits the Air Force’s demands best. Boeing competitor Northrop Grumman recently threatened to bow out of the bidding process if the Air Force’s final specifications seemed to favor Boeing. Air Force officials say they made minor adjustments to answer Northrop’s concerns.

Boeing originally won a similar contract a few years ago with its KC-767. The deal fell apart when it was discovered that Boeing offered a Pentagon weapons buyer jobs for her and her family in exchange for steering the bid Boeing’s way. In the meantime, demand for the 767 commercial jet has dropped off.

Although the company still has to finish reviewing the Air Force’s final specifications, McNerney didn’t foresee that it would require a significant amount of work for Boeing to complete the bid package. The company has said that it would need about three years to develop the 777 tanker.

Boeing wasn’t the only bidder with tanker news Wednesday.

Northrop’s partner for the tanker bid, European Aeronautic Defence and Space Co., said its refueling equipment recently reached several milestones. EADS also indicated that it was ready for the Air Force bid.

The EADS Air Refueling Boom System will be integrated into the Northrop Grumman KC-30 Tanker aircraft proposed for the Air Force tanker competition. It also will soon equip the fleet of five EADS KC-30B tanker aircraft ordered by the Royal Australian Air Force.

“The pace and success of our boom development and test activities are well on schedule to meet the requirements of the Northrop Grumman-led KC-30 team bid for the U.S. Air Force KC-135 replacement competition, as well as the Royal Australian Air Force KC-30B program,” said Ralph Crosby Jr., EADS North America chief executive officer, in a prepared statement.

Both Boeing and the Northrop-EADS consortium have 60 days to inform the Air Force of their intent to compete.

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