European Aeronautic Defence and Space Co. (EADS), the parent of Airbus, said it would put production of the Northrop Grumman KC-30 Tanker platform and the Airbus A330 civilian freighter aircraft at its Mobile, Alabama, aerospace center if it wins the massive contract.

Both the KC-30 Tanker and A330 commercial freighter are based on the Airbus A330 twin-engine jetliner.

Boeing Co., which is locked in a fierce battle with EADS and its US partner Northrop Grumman for the contract which could be worth up to 200 billion dollars, said meanwhile that its proposed aircraft, based on a Boeing 767, was "substantially more fuel efficient" than the larger Airbus 330.

The US aerospace giant said a Boeing-funded study found the 767 fleet burned 24 percent less fuel than the A330s and would save approximately 14.6 billion dollars in fuel costs over 40 years of service.

EADS said in a statement that the projects in the southern US state would result "in a robust final assembly line that ensures low risk, high efficiency and increased capacity for both military and commercial customers."

"This decision ... is dependent on US Air Force selection of Northrop Grumman's KC-30 Tanker as its new aerial refueling platform," the European company said.

Thomas Enders, Airbus president and chief executive, said the commitment by EADS and Airbus would be positive for the US aerospace market.

"For many years the production of large commercial aircraft has been a monopoly business in the US. An expanded Mobile final assembly facility would re-introduce competition back into the US commercial aircraft sector," Enders said at a speech in the Alabama city.

"Airbus will further gain by expanding our operations in the dollar-denominated US economy and through access to the superb workforce and supplier base that exists in the US."

Airbus and Boeing have been waging a subsidy war at the World Trade Organization in recent years, with each company accusing the other of getting government aid.

EADS is struggling with costly delivery delays at Airbus, notably in the A380 superjumbo program, as well as the negative impact of a steadily appreciating euro against the dollar.

The Alabama project is "in line with my company's strategy to further internationalize. This is in line with my company's strategy to put more work into the dollar-denominated area," Enders said in an interview on the CNBC business television network.

It would be the second time Airbus has offshored production outside Europe: the first was in mid-May, with the launch of construction of an assembly plant for the medium-range A320 in China that riled European labor unions.

The loss-making Airbus is undergoing a vast industrial reorganization and cost-cutting drive that will eliminate some 10,000 jobs, mainly at Airbus sites in France and Germany.

The US Air Force is expected to announce the winner of the aerial refueling tanker contract around January 31, according to Northrop Grumman.

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