Boeing has taken another hit on the KC-46 tanker development program, announcing $334 million in after-tax cost growth during its second-quarter earnings report today.
The company said in a July 25 press release the most recent charge is due to unanticipated costs related to updating its six flight-test aircraft as well as two of its early production aircraft. The cost of final testing and certification also contributed to the charge.
"While tanker's had its challenges, we've learned a lot," Dennis Muilenburg, Boeing's chief executive, said during the call Wednesday. "Tanker was especially complex because of multiple certifications required, both commercial and military."
One lesson the company learned, according to Muilenburg, is the importance of early investment in systems integration labs, which can help reduce development risk. He also mentioned the need for detailed, digitized engineering processes.
The Air Force and Boeing have had varying degrees of schedule alignment throughout the program, but the service and the company announced in June they expect initial tanker deliveries in October. Muilenburg said the program is well-positioned to meet that milestone on time.
"We have a known configuration, flight testing's completed, now we need to finish the work to get to delivery," he said.
The program's original schedule called for the first 18 tankers to be delivered by August 2017, fulfilling the required assets available milestone. The Air Force now expects the company to achieve RAA by April 2019.