Boeing's Delivery of New Aerial Tankers to Air Force Will Be Delayed
May 27 2016 - 3:28PM
Dow Jones News
By Doug Cameron
Boeing Co. said Friday that first deliveries of the new aerial
tanker it's building for the U.S. Air Force will be delayed by five
months, reflecting problems that have already forced it to take
around $1.5 billion in charges.
The aerospace company had maintained it could meet its
contractual commitment to deliver 18 of the KC-46 jets, modeled on
its 767 passenger plane, to the Air Force by August 2017, despite
delays in the plane's first flight and other design and technical
problems.
Boeing said Friday that the Air Force had pushed back its final
decision on buying the first batch of tankers until August, having
originally planned to approve a deal in June.
Boeing said the first jet will now be delivered to the Air Force
in August 2017 rather than March of next year, with the last of the
first batch arriving in January 2018.
The company plans to build an initial 179 of the aerial tankers
for the Air Force, but hopes it can sell around 400 world-wide.
Boeing didn't mention in its statement whether the latest delay
would trigger further charges.
Write to Doug Cameron at doug.cameron@wsj.com
(END) Dow Jones Newswires
May 27, 2016 15:13 ET (19:13 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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