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  • Saturday, April 20, 2024

Boeing Gets $2B Air Force Funds for Lot 3 KC-46 Tanker, Spare Engine Production


The U.S. Air Force has awarded Boeing (NYSE: BA) a $2.12 billion contract modification to produce 15 KC-46 multirole tankers and supply two spare engines, five wing refueling pod kits and data.

Boeing will perform work on the lot 3 KC-46s at a company facility in Washington through July 30, 2019, the Defense Department said Friday.

DoD noted the full obligated amount of the modification is from the military branch’s fiscal 2017 aircraft procurement funds.

The award comes five months after the department granted Milestone C approval to the program and subsequently announced $2.81 billion in contract funds for Boeing to manufacture and deliver a total of 19 KC-46 aircraft to the Air Force under lots 1 and 2.

Boeing said Friday it aims to build 179 planes to replace the service branch’s current tanker fleet under the program and is scheduled to begin deliveries later this year.

The KC-46A aircraft is designed to refuel military aircraft platforms that comply with international aerial refueling standards as well as facilitate transport of passengers, cargo and patients.

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