Northrop/EADS to pitch new tanker, too?

Even as Boeing lobbies the Pentagon for more time to design a bigger plane to offer as the Air Force’s new aerial refueling tanker, there are reports today that its rivals may do the same.

A report on Business Week’s website this morning cites Northrop Grumman “insiders” saying the company may propose a modified Airbus A330-200 freighter for its version of the tanker, instead of the converted A330 passenger jet it proposed last year, and that the Air Force chose in February.

That choice was withdrawn after a successful Boeing protest of the selection process, and the Air Force has re-defined its guidelines in ways that analysts say favor a larger plane. So Boeing is reconsidering its offer of a converted 767 cargo plane, but says it needs six months to complete a re-designed proposal, so it can’t meet the Air Force’s proposed October deadline. Boeing has threatened to quit the contest if it doesn’t get more time.

Boeing might be careful what they wish for, though.

Northrop and its partner, Airbus parent European Aeronautic Defence & Space Co., didn’t propose the A330-200 freighter last year because the plane wasn’t ready yet. It is now, and EADS has said, if it wins the tanker contract, it would build those freighters at the same Alabama assembly plant where it would build the tankers. If Northrop and EADS actually propose using the freighter airframe for the tanker, they would be able to do that more efficiently, and likely offer both planes at a lower price.

All this further raises the stakes on Boeing’s upcoming decision, which we wrote about earlier this week, whether to bow out of this high-profile contract fight or keep going. The first signs will likely come next week, when the Pentagon is expected to release its updated requirements for the plane, and a timeline for Boeing and Northrop to submit their proposals.