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Air Force

Cobham Accepts $206 Million Charge to End KC-46 Dispute

By Vivienne Machi

Tuesday, February 19th, 2019

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Cobham Accepts $206 Million Charge to End KC-46 Dispute

A KC-46A tanker takes off from Boeing Field outside Seattle en route to McConnell Air Force Base, Kansas, Jan. 31, 2019. The program suffered $275 million in charges in the fourth quarter of 2020. Photo: Boeing

Cobham said Feb. 19 it has accepted about $206 million in new charges from Boeing [BA] to end an ongoing dispute related to the Air Force’s new KC-46A Pegasus aerial refueler. Over $112 million of that sum will settle the dispute between the two companies, where Boeing has been withholding payments to the British contractor due to delays in the Wing Aerial Refueling Pod (WARP) system development. The companies have signed an agreement that settles all disputed matters up to…

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