Boeing inks contracts worth more than $4B for KC-46s, P-8s

WASHINGTON — The Pentagon this week awarded Boeing a pair of separate contracts for 15 KC-46A Pegasus tankers and seven P-8A Poseidon maritime surveillance aircraft, deals that are collectively worth more than $4 billion.

Although both contracts had been expected under existing plans, getting the deals signed is good news for Boeing, whose defense arm logged $2 billion in losses for its last fiscal quarter and which is facing company-wide layoffs.

The P-8A deal is valued at $1.67 billion and includes non-recurring engineering work for foreign military sales made to Canada and Germany. It will bring the number of P-8As on contract up to 207, 135 of which are for the US Navy. Australia, India, the United Kingdom, Norway, New Zealand, the Republic of Korea, Germany and Canada all fly the maritime surveillance aircraft, which has played an integral part in experimentation done at the behest of the AUKUS trilateral security pact.

“This $1.67 billion undefinitized contract for seven additional P-8A Poseidons not only reinforces the U.S. Navy’s commitment to maintaining a robust maritime presence but also highlights Boeing’s dedication to delivering safe, reliable platforms that enhance the Navy’s operational capabilities, readiness and effectiveness,” Tory Peterson, vice president and P-8 program manager at Boeing. “We look forward to delivering these additional P-8A maritime patrol aircraft to ensure the continued safety and security of our nation and allies.”

The KC-46A deal is valued at $2.38 billion and includes 15 additional planes for the US Air Force. The new deal brings the number of planes on contract up to 168, according to a Boeing statement. The company to date has delivered 89 KC-46As to the US Air Force as well as four to Japan.

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The State Department previously cleared Japan to purchase up to nine KC-46 tankers for its air force in a deal valued at a $4.1 billion. If the Japanese proceed with that deal, it would more than double its current fleet, which is currently set to eventually reach six planes. Israel is also under contract on the tanker, which has been plagued by delays and cost overruns over the last decade.