Breaking News
Investing Pro 0
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

Exclusive: U.S. Air Force to take delivery of Boeing tanker by year end, sources

Stock Markets Dec 20, 2018 05:52PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. A Boeing Air Force KC-46 aerial refueling tanker is parked near Boeing Field in Seattle
 
BA
-0.73%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Mike Stone

WASHINGTON (Reuters) - The U.S. Air Force will take its first delivery this month of the long-delayed KC-46 aerial refueling tanker made by Boeing Co (N:BA), people familiar with the process said.

Final paperwork has been moving through the Pentagon's chain of command in recent days, signaling that government concerns about the problem-plagued jet have been addressed after a multi-year delay, the people said.

The delays and fixes for the program has been costly for Boeing, which recorded $176 million in additional charges on the KC-46 tanker in the third quarter alone. This brought the total pre-tax cost of the program to more than $3 billion.

Delivery means Boeing could now begin to reverse what has been a steady stream of financial losses related to the KC-46 program, and a major public relations headache for the world's largest aircraft maker. The acceptance will be final when Defense Secretary Jim Mattis signs off on the delivery.

The Air Force currently plans to buy a total of 179 of the tankers, and could receive them at a pace of about three jets per month to McConnell Air Force base in Kansas.

In September, Boeing said the KC-46 completed the U.S. Federal Aviation Administration certification, nearly three years after the planemaker commenced testing for the certification.

Boeing landed the $49 billion contract in 2011 to build the tankers based on 767 commercial jets.

"The KC-46 is a top priority for the Boeing Company, and we have the best of Boeing working to ensure the U.S. Air Force gets their tankers as quickly as possible," Boeing said.

An Air Force spokeswoman said "We are working with Boeing to resolve deficiencies and move towards acceptance and delivery."

Problems with the jet, which refuels other aircraft mid-air, revolved around the mechanism for delivering fuel and the operation of that device, known as a "boom".

Those issues have been mitigated in the eyes of the Air Force, the people said.

Boeing previously missed a forecast that the aircraft would be delivered last year, as the planemaker was trying to get airworthiness certifications and complete a flight test program.

Exclusive: U.S. Air Force to take delivery of Boeing tanker by year end, sources
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email