Boeing struggles to steer defence unit in another year of losses.....

Boeing's defence business is proving harder to turn around than executives initially predicted, with supplier errors and high manufacturing costs contributing to $1.7 billion in losses this year on programs like the next Air Force One and NASA's Starliner capsule, reports Valerie Insinna from Reuters.

Despite absorbing $4.4 billion in losses in 2022 – which executives said would lower the risk of future cost overruns – the unit has seen little improvement this year.  Excluding last year, losses on Boeing's defence programs in 2023 exceed those from all years since 2014, according to a Reuters review of Boeing’s regulatory filings.

Boeing is unique among its defence contractor peers, as companies like Lockheed Martin, General Dynamics and RTX are seeing higher revenues due to demand from the war in Ukraine.  Unlike those companies, however, Boeing is locked into a handful of contracts that force the planemaker to take a loss when technology development goes over budget. The defence unit's losses this year include $933 million in charges in the third quarter, mostly comprising a $ 482 million loss in building two Air Force One planes and a $315 million charge on an unidentified satellite program that had not previously lost money.

Boeing's executives said they are putting in place new training and deploying resources to suppliers to ensure the unit moves from negative margins to high-single-digit margins by 2025-2026, when its most troubled programs are slated to be past flight testing and on more stable footing.  

Israel to buy four KC-46 tankers from Boeing

A KC-46 in action  Photo Boeing

Israel will buy four Boeing KC-46A refuelling tankers for its air force, the Israeli government and the U.S. defence contractor said on Thursday, a $927 million deal with delivery of the first planes expected in 2025, writes Dan Williams from Reuters. 

The tankers would replace the decades-old, repurposed Boeing 707s that Israel currently uses for mid-air refuelling and may help it signal seriousness about the possibility of a long-threatened strike against Iran's nuclear facilities and aid Israel's growing agression to neighbouring states. 

Thanking the Pentagon for what he described as its expedited approval of the KC-46A purchase, Israeli Defence Minister Benny Gantz said the tankers would "enable the IDF (Israel Defence Forces) to face security challenges near and far".

A KC-46 in action  Photo Boeing

Writing by Dan Williams - Reuters. 

Boeing KC-46A Tanker for Japan Completes First Refueling Flight

First KC-46A for a non-US customer gives and receives fuel with another KC-46A

Boeing will deliver tanker to Japan Air Self-Defense Force this year

The first Boeing KC-46A tanker built for the Japan Air Self-Defense Force (JASDF) recently refuelled another KC-46A aircraft in the skies over Washington state. The Japan-bound tanker also successfully received fuel in return.

“Refueling with the first Japan KC-46A is an important milestone for the Japan Air Self-Defense Force,” said Jamie Burgess, KC-46 program manager. “KC-46A is the world’s most advanced air refuelling aircraft and has already transferred more than 42 million gallons of fuel to other aircraft globally through its boom and drogue systems.”

Japan is the KC-46 program’s first non-U.S. customer and is scheduled to receive its first aircraft this year.

12 more KC-46A tankers for U.S. Air Force

Last week the U.S. Air Force pushed forward an order for 12 KC-46A tanker aircraft from Boeing. With this sixth production lot, Boeing is now on contract for 79 KC-46A tankers. 

The company delivered the first KC-46A to the Air Force in January 2019. Since then, Boeing has delivered 42 tankers to four different bases. The next-generation KC-46 brings new capabilities and operational flexibility to the U.S. Air Force and international customers.

Japan to get two more KC-46 tankers.

The U.S. Air Force has exercised the option for the Japan Air Self-Defense Force’s (JASDF) third and fourth Boeing KC-46 tanker through the Foreign Military Sale (FMS) process.

 “Japan’s new tankers will play an invaluable role in the security alliance between our two countries,” said Col. Jason Lindsey, U.S. Air Force KC-46 System program manager.

Boeing’s KC-46 will be a force multiplier in the U.S.-Japanese defence alliance. It can refuel U.S., allied and coalition military aircraft compatible with international aerial refuelling procedures, any time, on any mission, and can carry passengers, cargo and patients whenever and wherever needed.

US KC-46 Completes Its First Aeromedical Evacuation Mission

U.S. Air Force photo by Airman 1st Class Nilsa Garcia

Airmen from the 931st Air Refueling Wing and 22nd Aircraft Maintenance Squadron participated in a Total Force mission to test capabilities of the KC-46A Pegasus during its first aeromedical evacuation on July 10, 2020.

Over the course of six flights and 17 hours, the mission, which originated at Joint Base Andrews, Maryland, transited five patients and two attendees to Naval Station Norfolk, Virginia; Patrick AFB, Florida; and Travis AFB, California. The mission was evaluated by the Air Force Operational Test and Evaluation Center.

“I don’t think most people realize the amount of training and dedication the team has when they come out and do a mission like this,” said Maj. Michael Murphy, 905th Air Refueling Squadron pilot. “Everyone really performed well and at a high level.”

Boeing begins assembling first KC-46A tanker for Japan

The Boeing KC-46 team on Friday began assembling Japan’s first next-generation tanker, loading a 82.4-foot (25 metres) long wing spar in the company’s 767 production facility.

“This is an exciting day for the program and we look forward to building and delivering these multi-role tankers to the Japan Air Self-Defense Force (JASDF),” said Jamie Burgess, Boeing vice president and KC-46 program manager. “From the enhanced flight deck to the modernized boom, this tanker will provide unmatched capabilities for Japan.”

Boeing was awarded a Foreign Military Sale contract for one KC-46A aircraft and logistics services in December 2017. The U.S. Air Force exercised an option for Japan’s second aircraft in December 2018.