.jpg "Loren Thompson, an analyst with the Virginia-based Lexington Institute, said Boeing knowingly underestimated its KC-46 development costs to prevent Airbus from winning the deal, but the losses were larger than the company initially expected")
Boeing Co. said on Friday it will take a $536 million after-tax charge in its second-quarter results to deal with problems in the fuel system on the KC-46A aerial refueling tanker it is developing for the U.S. Air Force.The Chicago-based company said the charge, which amounts to 77 cents per share, would result in lower earnings for the full year. It said added funds were needed to cover higher costs for development, certification and initial production of the tanker aircraft, while keeping the $49 billion, 179-aircraft program on track for initial deliveries of 18 tankers by August 2017.
This is the second charge Boeing has taken on the KC-46 tanker, one of its biggest defense development efforts, bringing the total after-tax charges to just over $800 million, with the pre-tax bill reaching nearly $1.3 billion.
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A programme riddled with allegations of corruption, and protectionism on behalf of the US government.
ReplyDeleteIf the US had gone with the original choice of the Airbus based A330 MRTT, they would have got it on price and on target. It would now be flying in USAF colours.
Instead Boeing are reaping the rewards of their machinations, and paying the price,and they deserve it. Another overpriced offering foisted on the USAF.