Boeing Unveils 14 KC-46A Tankers in 2020, Secures Order for 12 Additional Aircraft
Boeing supplied 14 KC-46A in-flight refueling tankers to the US Air Force (USAF) in 2020, which is precisely half of what was provided the previous year.
The company faced challenges in 2020, resulting in delays in tanker deliveries to its primary client due to design flaws, manufacturing difficulties, and production disruptions caused by the coronavirus pandemic.
In spite of these setbacks, the USAF awarded Boeing a contract worth $1.7 billion for an additional 12 KC-46A tankers, as announced on January 12. Since January 2019, the manufacturer has successfully delivered 42 tankers to four different bases.
Boeing currently maintains a contract for 79 KC-46A tankers, along with an agreement for four tankers intended for Japan, the first of which is being constructed at its Everett, Washington facility.
In October, the manufacturer recorded a $67 million loss related to the KC-46A program, leading to total losses of approximately $5 billion. The aircraft has encountered ongoing manufacturing and design challenges, particularly with a refueling boom camera that generates distorted or unclear images. This camera system is undergoing redesign at a cost of $551 million – entirely at Boeing’s expense, as the program is financed through fixed-price contracts.
Nevertheless, Boeing expressed optimism in October, indicating that the program was making significant progress.
“The tanker has affected us negatively for around three or four years in every conceivable way regarding our investors. However, we are starting to overcome the obstacles with our customer related to its performance in their fleet and their requirements for that tanker,” stated David Calhoun, Boeing’s chief executive, during a third-quarter earnings call. “I believe that this relationship will start to evolve next year. Instead of being a burden on our franchise, as it has been, I anticipate it will transform into a strength for us.”
