Boeing seems to have really screwed the pooch on this one. And it wasn't the USAF's original choice.
"WASHINGTON — Boeing reported a $245 million charge on the KC-46A Pegasus tanker in the first quarter of 2023, due to a supplier’s quality issues.
The penalty means the KC-46 has now racked up more than $7 billion in charges, and follow a $1.2 billion hit the company took on the Air Force tanker in the third quarter of 2022.
The KC-46′s charge brought Boeing Defense, Space and Security into the red for the quarter, with the unit reporting a loss of $212 million, the company said Wednesday. Boeing said ongoing labor and supply chain disruptions also hindered the company’s results.
Boeing said the charge was largely driven by a previously disclosed quality issue due to a supplier, but did not offer further details in a call with analysts. The aviation news website the Air Current reported in March a subcontractor had not followed proper painting and priming procedures on the center fuel tanks of some KC-46s and 767s, on which the KC-46 is based, which has held up deliveries. That quality issue could risk contamination of the aircrafts’ fuel systems, Air Current reported.
Brian West, Boeing’s chief financial officer, confirmed the quality issue with the 767 center fuel tanks later that month at a Bank of America conference.
David Calhoun, Boeing’s chief executive, said on Wednesday’s call work is progressing on fixing that problem. But the company warned investors more losses on the KC-46 could come during the remainder of the year."
https://www.defensenews.com/air/2023...top-7-billion/
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