Boeing today reported it incurred $148 million in KC-46 tanker charges in 2019, which the company attributes to "higher manufacturing costs."
The company revealed the "forward-reaching loss" in a Securities and Exchange Commission filing.
Boeing has already absorbed more than $3 billion in extra charges on its fixed-price tanker contract due to development and design problems. Along with added costs, which are largely Boeing's to pay, the tanker is behind schedule, and continues to face development and testing delays.
The Air Force accepted initial KC-46 deliveries in January 2019, despite three open Category 1 deficiencies. Since then, multiple instances of foreign-object debris and a new deficiency that has since been closed have contributed to additional program slow-downs. The Air Force projects the program will not achieve required assets available -- originally scheduled for August 2017 -- until this summer, and officials have said the tanker will not be combat-ready sooner than 2022.
The commander of U.S. Transportation Command said this week at an Atlantic Council event tanker availability is one of his biggest concerns, and he’s working closely with the Air Force to mitigate the impact of the KC-46 delays.
"We've got to figure out a way to mitigate the delayed fielding of the KC-46," Gen. Stephen Lyons said this week. "It we're not careful, we're going to see a real dip, a bathtub in taskable tails for the joint force."
The Air Force and TRANSCOM have discussed delaying planned KC-135 and KC-10 retirements to help with tanker availability concerns. Lyons told lawmakers last March the plan was to retain 28 KC-135s beyond their intended service life.
Air Mobility Command spokeswoman 2nd Lt. Emma Quirk told Inside Defense this week the service will not change its current KC-10 retirement plan, which calls for the fleet to be divested by fiscal year 2024. She would not confirm current KC-135 retirement plans, but said "the total number of KC-135 reductions, by fiscal year, is fluid and expected to be announced next month when Air Force leaders brief the FY-21 budget."
As of Jan. 10, the Air Force has withheld $800 million on the 30 KC-46 aircraft Boeing has delivered due to the outstanding deficiencies. Those deficiencies include an issue with the aircraft’s remote visual system and two problems with the boom that make it difficult to refuel lighter aircraft.
The Pentagon's top weapons tester, Robert Behler, said this week in his annual report that early operational flight testing verified the RVS concerns, and he recommended the program "advocate for any changes necessary to ensure the RVS is mission capable under all air refueling conditions."