The US Air Force will release $882 million in payments to Boeing that were held back due to flaws in the KC-46 air refueling tanker, said a Pentagon official.
The release of the payment to Boeing is part of a broader recommendation sent to Air Force contracting officials, according to a memo seen by Reuters, aimed at maintaining the financial health of suppliers to the Department of Defense.
The KC-46A Pegasus in-flight refuelling tanker has been plagued with problems and is years behind schedule. The Air Force had the right to hold back about $28 million of the cost of each of the first 52 KC-46 Pegasus jets on order to ensure Boeing delivers fully functional tankers. With 33 jets delivered thus far, the Air Force could have withheld up to $924 million.
However, in order to ensure a fix to an especially difficult problem with the tanker’s Remote Vision System (RVS) – a camera used to guide the tanker’s refuelling boom – the service believes it would be productive to release the withheld funds. The additional cash should help improve Boeing’s financial position and thus speed up the resolution of the problem.
“Cash flow is everything right now. Liquidity is everything. We have created policies in the Department of the Air Force to get as much cash out of our hands and into industry as possible where prudent. The KC-46 is no exception,” says Will Roper, assistant secretary of the USAF for acquisition, technology and logistics on 2 April. “As we’ve changed cash flow policies, we took a hard look at our withholds for KC-46. Given the need to get an RVS 2.0 design nailed down, we asked ourselves, given Covid-19, is this withhold doing the job for us that we need it to do? We thought it was much better to go ahead and try to tie this up.”
The result is two memoranda of understanding with Boeing. One agreement is to the specifications and process to certify the RVS. The other agreement is for releasing the withheld funds.
The new camera design is jointly developed by the USAF and Boeing . The service plans to initially field the new RVS in 2023.
The Air Force plans to buy 179 of the aircraft, which refuel other aircraft mid-air, but the program has been plagued with problems, including foreign object debris found onboard the planes and issues with a camera system used during the refueling process.
Boeing Defense, Space & Security chief executive Leanne Caret said the “takes advantage of new remote vision systems technologies that are orders of magnitude better than what was available when the program started.”
Boeing has temporarily shut several production lines in Washington state due to the spread of the coronavirus.
On Monday, the Air Force announced an additional major technical issue with the KC-46 Pegasus related to fuel leaks that could endanger the aircrew and aircraft.
Mayman Aerospace is set to unveil a full-scale model of its high-speed Air Utility Vehicle (AUV), Razor, during SOF Week…
TEKEVER, a provider of unmanned aerial systems (UAS) in Europe, introduced its newest drone the ARX in San Diego, U.S.…
Viasat and uAvionix have teamed up to enhance global communication services for Uncrewed Aerial Vehicles (UAVs), with uAvionix joining Viasat’s…
Korean Air and WestJet have extended their codeshare agreement to provide additional transpacific travel options for passengers on Monday (Apr.…
China Eastern Airlines has reached an agreement with Amadeus concerning international NDC distribution, marking a significant development for both parties.…
Singaporean officials have launched an Invincible-class submarine for the Republic of Singapore Navy (RSN) at thyssenKrupp Marine Systems (tKMS) shipyard…
Ten died following a midair collision between an AW139 helicopter and a Fennec helicopter belonging to the Royal Malaysian Navy…
Integrated Surveillance and Defense (ISD) has been awarded a contract by the U.S. Naval Air Warfare Center Aircraft Division (NAWCAD),…
ST Engineering AirX (AirX), a joint venture between ST Engineering and Peluca (formerly known as Wigetworks), have announced a strategic…
WestJet Cargo is strengthening its flights between Calgary and Paris Charles de Gaulle (CDG). The route will operate 5-7 times…
Embraer delivered 25 jets in 1Q24, an increase of 67% compared to the 15 aircraft delivered in 1Q23. Executive Aviation…
Harbour Air, North America's largest seaplane airline, has signed a Letter of Intent (LOI) to purchase 50 magni650 electric engines,…
Emirates President Sir Tim Clark has apologised to customers for the disruptions caused by the severe weather that battered Dubai…
The Indonesian Navy (TNI Angkatan Laut - TNI AL) aims to enhance its operational capabilities between 2025 and 2044 with…
The Philippine Armed Forces (PAF) took delivery of the first India-made BrahMos land-based anti-ship missile system at Clark Air Base…
The UK Ministry of Defence (MoD) ordered six Airbus H145 helicopters as part of its efforts to update its rotary…
The Brazilian aerospace company, Embraer, signed a Memorandum of Understanding (MoU) with AICAT (Austrian Industrial Cooperation & Aviation Technology) to…
Qatar’s Hamad International Airport (DOH) announced that it has reclaimed the title of the "World’s Best Airport" at the prestigious…
Israel Aerospace Industries (IAI) joined the Sharp Technics K (STK) and Incheon International Airport Corporation for a ceremony heralding the…
Curtiss-Wright Defense Solutions division has forged a strategic alliance and reseller agreement with Rancher Government Solutions (RGS), a provider of…
Saudia, the national airline of Saudi Arabia, has experienced a significant surge in brand value, as indicated by the latest…
The ongoing eruption of Mount Ruang in the Siau Islands regency, North Sulawesi, Indonesia has caused significant disruptions to air…
Scoot, the low-cost arm of Singapore Airlines, recently received the first Embraer E190-E2 aircraft at Changi Airport. "We are excited…
The first of two Fincantieri-built PPA (Pattugliatore Polivalente d'Altura - offshore multi-purpose patrol vessel) for the Indonesian Navy is expected…
Thailand’s DTI (Defence Technology Institute) and the Royal Thai Army recently conducted a successful test of the DTI-STD-003 bridge layer…
Eve Air Mobility has signed a letter of intent with AirX, Japan’s largest public helicopter air charter service, for up…
L3Harris Technologies has received a US$256 million order from the U.S. Army for continued production of the Enhanced Night Vision…
The Missile Defense Agency has selected Lockheed Martin to deliver the nation's new homeland missile defense capability, the Next Generation…
Collins Aerospace will introduce two major upgrades to the Ascentia software platform. Ascentia is a software solution for aircraft reliability management that…
Pratt & Whitney Canada's PT6A engine recently surpassed 25 million flight hours and 40 years of powering the Cessna Caravan…
Headquartered in Singapore with reporters spread across all major regions, GBP Aerospace & Defence is a leading media house that publishes three publications that serve the aerospace and defence sector - Asian Defence Technology, Asian Airlines & Aerospace and Daily News. Known industry-wide for quality journalism, GBP Aerospace & Defence is present at more international tradeshows and exhibitions than any other competing publication in the region.
For over three decades, our award-winning team of reporters has been producing top-notch content to help readers stay abreast of the latest developements in the field of commercial aviation, MRO, defence, and Space.
Copyright 2024. GBP. All Rights Reserved.
Home Defence & Security Space Commercial Aviation Maintence Repair & Overhaul Daily News Events About Us
2024 GBP all rights reserved.