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U.S. Air Force to accept KC-46 air tanker - source

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Reuters WASHINGTON
Last Updated : Jan 10 2019 | 10:21 PM IST

WASHINGTON (Reuters) - The U.S. Air Force is set to announce on Thursday that it will accept delivery of the long-delayed KC-46 air tanker, a source familiar with the matter told Reuters.

Delivery means Boeing could now begin to reverse what has been a steady stream of financial losses related to the KC-46 program, and a major public relations headache for the world's largest aircraft maker.

The Air Force currently plans to buy a total of 179 of the tankers, and could receive them at a pace of about three jets per month to McConnell Air Force base in Kansas.

The delays and fixes for the program has been costly for Boeing, which recorded $176 million in additional charges on the KC-46 tanker in the third quarter. This brought the total pre-tax cost of the program to more than $3 billion.

Boeing shares were up 0.9 percent premarket at $347.

(Reporting by Susan Heavey; additional reporting by Mike Stone; Writing by Nick Zieminski; Editing by Doina Chiacu and Chizu Nomiyama)

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First Published: Jan 10 2019 | 10:08 PM IST

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