Boeing has won a $2.1 billion contract to build more tanker planes for the U.S. Air Force, the manufacturer and the Pentagon announced today.
Under the deal, Boeing will build 15 KC-46A tanker aircraft, plus spare engines and wing air refueling pod kits. It’s the third low-rate initial production order for the company. The first two orders were for seven and 12 planes.
“This award is great news for the joint Boeing-Air Force team and reinforces the need for this highly efficient and capable tanker aircraft,” Mike Gibbons, Boeing’s KC-46A tanker vice president and program manager, said in a statement.
The Pentagon gave Boeing the initial contract to design and develop the next-generation tanker aircraft in 2011. Eventually, the Air Force intends to buy 179 KC-46 tankers to replace its current fleet. When follow-on orders and international sales are included, Boeing could sell as many as 400 of the tankers for as much as $80 billion.
“Placing an order for another 15 aircraft is another important milestone for the KC-46 program,” said Col. John Newberry, Air Force KC-46 System program manager. “I know the warfighter is excited about bringing this next generation capability into the inventory.”
The aircraft will be assembled at Boeing’s plant in Everett, Wash.
The tanker development project has suffered some setbacks along the way: In Wednesday’s fourth-quarter earnings report, Boeing announced it was taking $312 million in pre-tax charges on the program, primarily due to design modifications that had to be made in the course of flight tests. There are currently four test planes flying, including two that are configured as 767-2C jets and two as KC-46A aircraft.
In the long run, Boeing sees the tanker program as a “great long-term franchise program,” said Dennis Muilenburg, the company’s chairman, president and CEO.
