The Air Force says it reached two agreements with Boeing today, aimed at making the final fixes in camera systems for Boeing-bult KC-46A Pegasus tankers and releasing $882 million in payments that were held back due to problems with the tankers.

  • The first agreement obliges Boeing to upgrade the remote vision systems that operators use to monitor in-flight refueling operations. The systems that were originally installed on the tankers didn’t measure up to the Air Force’s standards, due to image distortions, but installation of the new systems should result in the planes being fielded in 2023.
  • A separate agreement provides Boeing with payments that were held back for previous non-compliance in 33 KC-46 deliveries. The Air Force said the decision is in line with “policies to maximize cash flow, where prudent, to combat coronavirus impacts on the industry base.” Within 120 days, the Air Force and Boeing will conduct an expedited process to determine compliance or non-compliance with final specifications.
  • Leanne Caret, the president and CEO of Boeing Defense, Space & Security, praised the agreement on the remote vision systems, saying it “takes advantage of new remote vision systems technologies that are orders of magnitude better than what was available when the program started.”
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