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Air Force

Overruns on KC-46A Climb to $6.9 Billion

Frank Wolfe Frank Wolfe
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Overruns on KC-46A Climb to $6.9 Billion
A CV-22 Osprey tiltroter aircraft assigned to the 20th Special Operations Squadron and a KC-46 Pegasus tanker aircraft assigned to the 349th Air Refueling Squadron conduct the first ever in-air refueling operation undertook between the two aircraft over Cannon AFB, N.M. on June 1, 2022. (U.S. Air Force Photo)

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…

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