Boeing to offer Air Force a 767-based tanker

Published 1:18 pm Thursday, March 4, 2010

The Boeing Co. will offer the Air Force a tanker based on its Everett-built 767 commercial jet, the company announced today.

Boeing is competing against duo Northrop Grumman and EADS for a $35 billion contract replacing the Air Force’s KC-135 fleet of aerial refueling tankers. The Air Force released its final requirements for its tanker contest last week. After reviewing those requirements, Boeing has decided to offer its KC-767.

“We respect and understand the KC-X requirements, and appreciate the importance of this program for the United States and its warfighters,” said Dennis Muilenburg, president of Boeing’s defense, space and security division. “We intend to bid for the honor to work with our Air Force customer to replace the existing fleet of KC-135 aircraft with a new-generation, multi-role tanker in a fair and transparent acquisition process.”

Boeing’s selection of the 767 as its tanker platform isn’t a surprise although the company also had considered a tanker based off its larger 777 commercial jet. Defense analysts and members of Congress alike have suggested the Air Force’s final requirements are geared more toward a smaller tanker like Boeing’s KC-767 than a larger one like Northrop and EADS’ KC-30.

Boeing is calling its 767 tanker the “NewGen Tanker” noting its tanker meets all of the Air Force’s requirements. Boieng says its 767 tanker will offer a digital flight deck similar to the one it’s using for the 787 Dreamliner commercial jet.

In announcing its choice of the 767, Boeing highlighted its lengthy history of building tankers for the Air Force. Boeing released a new video emphasizing its tanker-building knowledge.

Northrop officials are still considering whether they will bid for the $35 billion deal. The company has expressed concerns previously that the contest favors Boeing. Northrop and EADS would assemble their tanker, which is based off an Airbus A330 plane, in Mobile, Ala. EADS is the parent company of Airbus.

A Boeing win would secure thousands of jobs on Boeing’s 767 production line here in Everett. Boeing’s 767 commercial jet had just 58 unfilled orders at the end of January — enough to keep workers here busy for about three years. But Boeing’s new 787 essentially will replace the 767.

Boeing has built 767-based tankers for Italy and Japan. The company offered the Air Force a 767-based tanker during the Air Force’s last attempt at replacing its aging KC-135 fleet. The Air Force picked Northrop’s KC-30 but halted the contract when government auditors found flaws in the competition. Boeing’s offering then pieced together several of its 767 models. This tanker is expected to be a simplified version, which reduces risk in the Air Force’s eyes.

This 767 tanker will save the Air Force roughly $10 billion in fuel cost over 40 years compared to Northrop’s larger tanker, Boeing said. The company also believes its tanker will support more American jobs.

Some supporters of Northrop have been lobbying the Obama administration to speed up its tanker procurement. The Air Force is expected to have three rounds: the KC-X, KC-Y and KC-Z. Northrop supporters say the KC-30 fits the Air Force’s expectations for the KC-Y competition and want to see that program accelerated.

Everett Mayor Ray Stephanson called Boeing’s selection of the 767 as its tanker platform “welcomed news.”

“The 767 is a proven plane, ready to be built immediately by our experienced workforce,” Stephanson said. “This highly skilled workforce, in place and ready to perform, offers a big plus to Boeing and a significant cost savings to taxpayers.”

Washington Gov. Chris Gregoire released a joint statement with the eight governors of her coalition that supports Boeing’s tanker efforts:

“The 767 is a proven model, built at facilities with the world’s best workforce, and is more efficient than any model that will be proposed by its competitors,” the governors said. “This announcement confirms what the members of the U.S. Tanker 2010 Coalition have been saying – the Boeing proposal will give our men and women in the military the best tankers at the fairest price to the taxpayer, and will create the most jobs here in America.”