The Air Force on Thursday awarded Boeing [BA] a $2.8 billion contract for KC-46 tanker low-rate initial production (LRIP), according to a company statement.

The award includes the first two production lots of seven and 12 aircraft, respectively, as well as spare parts. Including future options, Boeing plans to build a total of 179 of the 767-based refueling aircraft. The Air Force will use the KC-46 to replace its fleet of KC-135 tankers.

KC-46 refuels A-10 during testing on July 15. Photo: Air Force.
KC-46 refuels A-10 during testing on July 15. Photo: Air Force.

The Air Force recently had its Milestone C decision approved, allowing the contract to be awarded.