AIRSHOW-UPDATE 1-Boeing studying 767, 777 for tanker bid
* Commercial sector supporting 777 study
* High stakes in third round of competition (Adds details, quotes and byline)
PARIS, June 16 (Reuters) - Boeing Co (BA.N) on Tuesday said it had carefully studied both its 767 and larger 777 aircraft for use in a new U.S. aerial refueling competition, but would not decide which plane to bid until the Pentagon released the terms of the competition.
Dave Bowman, Boeing vice president and general manager of tanker programs, said the company had done "a lot of work" on possible tanker variants since the Pentagon cancelled a $35 billion contract with Northrop Grumman Corp (NOC.N) and its partner, Airbus parent EADS (EAD.PA), last year.
Bowman said Boeing's commercial wing was cooperating closely on the tanker proposal, and was ready to support either the 767 or 777, depending on what Boeing decided to offer.
"Whether it's a 767 base or a 777 base or something in between, they're 100 percent on board," Bowman told reporters at the Paris Air Show.
Northrop and Boeing executives have used the Paris Air Show to breathe new life into a competition that will soon enter a third round.
Boeing had considered the 777 as a possible tanker offering during the last competition, but opted for the 767 because it was convinced the Air Force did not want such a large aircraft.
After Northrop and EADS won with their A330, Boeing officials began to question if they should have offered the 777 after all. But analysts said the commercial side of the house was not that supportive last time.
Bowman declined to give any details of Boeing's possible plans, but said every possible variant had been studied.
He acknowledged that Boeing could be at a disadvantage if the Air Force opted for a large tanker, and wanted it done quickly.
EADS, already building an A330-based tanker for Australia, would have a leg up in that case, he said, but he noted that it was unclear what the Air Force's priorities would be.
The Air Force's first bid to replace its aging fleet of KC-135 refueling aircraft centred on a lease/buy deal with Boeing for 1,000 767s, but that collapsed in 2004 amid a major procurement scandal that sent a former Air Force official and Boeing's former chief financial officer to federal prison.
Northrop won the second competition, which was carefully monitored by Pentagon officials, but governnent auditors still upheld 8 of over 100 protest points raised by Boeing in its protest.
Lawmakers weighed in, as did the companies with scores of full-page newspaper advertisements, elevating the issue to such an extent that Defense Secretary Robert Gates ultimately said the only solution was to start over --- again. Continued...
