The Chicago-based aerospace giant said it filed a protest with the Government Accountability Office (GAO), asking the investigative arm of the US Congress to review the decision.

"Our analysis of the data presented by the Air Force shows that this competition was seriously flawed and resulted in the selection of the wrong airplane for the warfighter," Mark McGraw, vice president and program manager, Boeing Tanker Programs, said in a statement.

"We are exercising our right under the process for a GAO review of the decision to ensure that the process by which America's next refueling tanker is selected is fair and results in the best choice for the US warfighters and taxpayers."

With the filing of the protest, the contract is suspended until the GAO makes a decision on the matter.

On February 29, the air force awarded the contract to build up to 179 military refueling planes to Northrop Grumman Corporation and the European Aeronautic Defence and Space Company (EADS), parent of Airbus, Boeing's arch-rival in commercial aircraft.

The new air refueling tanker, dubbed the KC-45, will replace the air force's fleet of aging Boeing KC-135 tankers.

It was a stunning upset for Boeing, until now the sole supplier of air refueling planes to the US military.

The contract is for the initial phase of a fleet replacement project worth some 100 billion dollars over the next 30 years.

The awarding of the contract to Northrop Grumman and EADS raised a furor and a protectionist backlash among Boeing backers in the US Congress who charge that it will cost US jobs, and that the requirements were changed in a way that favored the larger Airbus aircraft built by EADS.

The Pentagon has defended the contract, saying it resulted from a fair competition that gave the American taxpayer the best value for the best price.

The air force briefed Boeing on Friday about why its bid was rejected. Northrop Grumman and EADS received a briefing on Monday.

Under the terms of the suspended US Air Force contract, Airbus will assemble commercial 330s in Alabama. Separately, Northrop Grumman will convert the planes into tankers using sensitive military technology that is not to be shared.

Reacting to Boeing's announcement that it will formally challenge the award of the contract to EADS and Northrop Grumman, EADS chief executive Louis Gallois said the process was "exceptionally transparent, professional and fair."

He added that prime contractor Northrop Grumman was in charge of the legal aspects of the matter.

Gallois spoke as EADS said it posted a full-year net loss of 446 million euros (683.1 million dollars) in 2007.

Airbus, struggling with cost overruns on its new A380 superjumbo aircraft and delays with its A400M military plane, reported an operating loss of 881 million euros (1.4 billion dollars).

"2007 was a tough year with many high-profile challenges to be overcome," said Gallois, reflecting on the worst ever results for Airbus.

Separately, Northrop Grumman announced it had doubled its estimate of the jobs the contract would directly or indirectly create in the United States.

The Los Angeles-based defense contractor said in a statement it was now forecasting the creation of 48,000 jobs, up from 25,000 initially predicted.

In May 2003, a similar tanker contract was awarded to Boeing, but it was annulled under allegations of procurement fraud, for which Boeing paid a record 615-million-dollar settlement to the US government.

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