- Boeing (NYSE:BA) did not deliver the first KC-46 aerial refueling tanker to the U.S. Air Force by year-end 2018 as planned due to remaining problems with the plane, Investors Business Daily reports, citing an unnamed senior Department of Defense official.
- The DoD was not willing to accept the plane for delivery because of a number of hardware and software deficiencies, according to the report, adding that the delay was not due to the abrupt departure of James Mattis as defense secretary.
- With Mattis gone, the decision to sign off on the KC-46 likely will fall to Pentagon acquisition chief Ellen Lord rather than Air Force Secretary Wilson, the report says; Acting Defense Secretary Shanahan cannot sign off on the plane because of his 30-year career at Boeing.
- Boeing expects to build 179 of the tankers in a $40B-plus deal, but the program has been plagued by technical glitches and schedule delays that have cost Boeing more than $3B in pretax charges under its fixed-price contract.
- Now read: Boeing Shares Head Lower, Despite Enabling Investments
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