UPDATE 3-Boeing to challenge US Air Force tanker decision

(updates with Air Force, EADS comment)

WASHINGTON, March 10 (Reuters) - Boeing Co (BA.N: Quote, Profile, Research) said on Monday it would formally challenge a decision by the U.S. Air Force to award a $35 billion aerial tanker program to a team led by Northrop Grumman Corp (NOC.N: Quote, Profile, Research) and Europe's EADS (EAD.PA: Quote, Profile, Research).

"This is an extraordinary step rarely taken by our company, and one we take very seriously," said Jim McNerney, Boeing chairman, president and chief executive officer, in a statement.

Boeing said it would ask the Government Accountability Office, the investigative arm of Congress, on Tuesday to review the Feb. 29 decision that has triggered outrage from some lawmakers sympathetic to Boeing and unhappy that a European company was selected over an American one.

Boeing said on Friday it had "significant concerns" about the decision following an Air Force briefing on why it lost the contract award. The company said it conducted a "rigorous analysis" of the Air Force evaluation.

McNerney said based on "what we have seen" the company continues to believe that Boeing had the "most capable, lowest risk" and most cost-competitive bid over the life of the program.

"We look forward to the GAO's review of the decision," he said.

Northrop completed its debriefing with the Air Force on Monday, and said the Air Force called its winning bid "more advantageous to the government" in the key areas of capability, past performance, cost and refueling performance.

Air Force officials said last week that the Northrop/EADS bid was superior in a number of areas.