A better week for Boeing
The Pentagon this week awarded Boeing separate contracts for 15 KC-46A Pegasus tankers and seven P-8A Poseidon maritime surveillance aircraft. Both contracts had been widely expected, but nonetheless represented good…
November 24, 2024
The Pentagon this week awarded Boeing separate contracts for 15 KC-46A Pegasus tankers and seven P-8A Poseidon maritime surveillance aircraft. Both contracts had been widely expected, but nonetheless represented good news for Boeing, whose beleaguered Defense and Security business lost $2 Bn in its last quarterly report.
The so-called Lot 11 contract modification is a $2.38 billion agreement to produce 15 additional KC-46A Pegasus aerial refuelling tankers for the US Air Force, bringing the total number of aircraft on contract to 168, and ensuring ongoing production through to at least June 2028. The USAF requirement is for 179 aircraft in total. Boeing has delivered 89 KC-46As to the US Air Force to date, as well as four to the Japan Air Self-Defense Force.
The KC-46A fleet has now amassed more than 100,000 flying hours, offloading more than 200 million pounds of fuel to receivers globally.
The US Air Force Air Mobility Command approved the KC-46A for global combat operations in 2022, and the Pegasus multi-mission tanker made its inaugural full-scale operational deployment In October.
In July, Boeing was awarded a contract to upgrade the mission readiness and performance of the KC-46A tanker, building on the 2023 Block 1 upgrade, and aiming to further enhance the tanker’s advanced communications, data connectivity and situational awareness. It is intended that this will improve aircraft survivability and viability in contested environments providing a meaningful operational advantage.
US domestic orders mean that the KC-46 is notionally the world’s most successful new generation tanker, though the rival A330 MRTT has many more export customers, and is viewed by many as a superior tanker aircraft. The KC-46A has been ordered by Japan, with six on order, and by Israel, who are set to receive at least four (with approval given for eight).
Interestingly, Boeing issued a press release about the KC-46A contract but, at the time of writing, had not issued one about the new Lot 13 production P-8A contract. Tory Peterson, vice president and P-8 program manager at Boeing did tell Breaking Defense that: “This $1.67 billion undefinitized contract for seven additional P-8A Poseidons not only reinforces the U.S. Navy’s commitment to maintaining a robust maritime presence but also highlights Boeing’s dedication to delivering safe, reliable platforms that enhance the Navy’s operational capabilities, readiness and effectiveness. We look forward to delivering these additional P-8A maritime patrol aircraft to ensure the continued safety and security of our nation and allies.”
The P-8A contract includes non-recurring engineering services in support of the P-8A foreign military sales to Canada and Germany.
It will bring the number of P-8As on contract up to 135 for the US Navy and 207 overall.
