Boeing not aiming to underbid EADS on tanker-CEO

* Boeing likely to issue tanker bid-CEO

* But not aiming simply to underbid EADS

* Airbus could win on price-CEO

CHICAGO, June 3 (BestGrowthStock) – Boeing Co (BA.N: ) is likely to
bid in the U.S. Air Force refueling plane competition, but its
goal is not simply to underbid rival EADS (EAD.PA: ), which could
have an advantage because it receives government subsidies,
Boeing’s Chief Executive said on Thursday.

“This can be a dangerous situation for Boeing. We have to
bid responsibly,” James McNerney said on a webcast of an
analyst conference.

“Airbus could win this thing on price,” he said, referring
to the EADS unit.

At stake is a U.S. Air Force contract worth up to $50
billion to build 179 new aerial refueling planes. Boeing has
said it intends to bid despite concerns that EADS could have a
price advantage.

The two companies must submit bids by July 9 to replace the
Air Force’s aging fleet of KC-135 tankers.

Last month, the U.S. House of Representatives approved a
Boeing-backed bill that would force consideration of illegal
subsidies in the race to sell refueling aircraft to the U.S.
Air Force.

Also McNerney said the company still is considering whether
to replace its hot-selling 737 model with a new plane or outfit
its existing 737 with a new engine.

McNerney said that if Boeing could design a plane by 2020,
it may replace the old model. If it takes until 2025 to produce
a new plane, then the case builds for designing a new engine,
he said.

“I’d rather not put the backlog at risk twice unless we
have to,” McNerney said.

Shares of Boeing were down 0.26 percent at $64.08 on the
New York Stock Exchange.

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(Reporting by Kyle Peterson, editing by Leslie Gevirtz)

Boeing not aiming to underbid EADS on tanker-CEO