
Cost overruns on the U.S. Air Force's KC-46A Pegasus tanker have climbed to $6.9 billion from more than $5 billion last December. Under the terms of Air Force's February 2011 contract with Boeing [BA] for the tanker, the company has been responsible for picking up development costs exceeding $4.9 billion for the first four planes and any overruns thereafter in production lots (Defense Daily, Dec. 3, 2021). Boeing has delivered 62 KC-46As to the Air Force thus far out of…