Aerospace giant Boeing said today it was confident it could hold onto to a multi-billion dollar US Air Force contract even if the Pentagon seeks new bids for the lucrative tanker deal.
Mr James Albaugh, president and chief executive of Boeing's Integrated Defense Systems, also said the aircraft manufacturer still expected to boost revenue at its key military and space unit by 10 per cent in 2004 despite pressure on Pentagon spending.
Last week, the Defense Department said it was putting off until at least November a decision on whether it would reopen talks on a $23.5 billion plan to lease 20 and buy as many as 80 modified tankers based on Boeing's 767 airliner.
The defense division generates around 60 per cent of Chicago-based Boeing's $50.5 billion annual revenue.
The Pentagon has said the stalled plan could still be concluded, but arch-rival Airbus's parent, EADS, whose own tanker-refueling programme is months behind schedule, has said it is ready to compete if new bids are sought.
"We're very hopeful that once the 767 will be the obvious candidate, based on the analysis of alternatives, or if there's a competition, that we will able to win the competition," Mr Albaugh said.
"Based on what we know and what we've seen, we still feel pretty confident that when all is said and done, the 767 will be the tanker of choice," he added.
Lockheed Martin quietly proposed an all-new aerial refueling tanker in 2002 before the Air Force pursued a Boeing deal, and it has left open the possibility of reviving its pitch to replace the aging KC-135 fleet if the military calls for a new contest.
Last week, the Pentagon put off a decision until an Air Force analysis of the alternatives, a major look at other refueling options and a mobility capability study were done by November.