Boeing likely to decide on tanker protest this weekend

WASHINGTON (Reuters) - Boeing Co (BA.N) likely will decide this weekend whether to challenge formally an Air Force decision awarding a $35 billion refueling aircraft program to arch-rival EADS (EAD.PA) and its partner, Northrop Grumman (NOC.N), a Boeing executive said on Thursday.

Mark McGraw, vice president of Boeing's aerial tanker program, also told CNBC television that Boeing offered its 767 aircraft based on what the Air Force identified as its requirements.

"To some extent, the requirements steered us to the 767," McGraw said. But the Air Force picked the bigger A330, built by EADS' Airbus unit, saying it offered greater capacity to carry fuel, passengers and cargo.

Last Friday the Air Force announced it would spend up to $35 billion for 179 modified A330 wide-bodied jets over the next 15 years. The tankers are used to refuel warplanes in flight. Chicago-based Boeing built the current KC-135 U.S. tanker fleet, with planes now averaging 47 years of age.

The Air Force is scheduled on Friday to explain to Boeing its decision to pick the Northrop/EADS tanker, starting a 10-day clock when Boeing can file a formal protest with the Government Accountability Office, Congress's investigative and audit arm.

"We want to listen tomorrow," McGraw said. "We do not protest often. We take that decision very seriously because it could have an impact on the men and women of our military."

But "if we think there was a problem with the process or some disconnect, we'll decide what we're going to do," he added. "And we'll probably do that over the weekend."

(Reporting by Julie Vorman and Jim Wolf; Editing by Tim Dobbyn)