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WASHINGTON (AP) - Boeing Co. on Monday announced a newly designed KC-767 as its proposed aircraft for a $40 billion Air Force contract competition to replace 179 refueling planes. The Chicago-based company said at a press conference that it tweaked the design of its long-range 767 freighter plane to improve fuel efficiency and allow it to take off and land on shorter runways, giving it greater flexibility in combat situations.
Boeing is competing against Northrop Grumman Corp., which is expected to offer its KC-30, a modified Airbus A330, at a discounted price.
"They can afford to make improvement to the aircraft — by putting in a couple of bells and whistles — and still be well below the price competition," said Paul Nisbet, analyst for JSA Research Inc.
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