Boeing Anticipates Production Approval For KC-46 Tanker Following Milestone C Testing

Boeing has completed all necessary Milestone C testing to receive customer approval to enter production for the KC-46 tanker.

The airborne tanker recently refuelled F-16, A-10 and C-17 aircraft to signal the end of  Milestone C testing, a Boeing statement said.

The company recognize a $393 million after-tax charge ($0.62 per share) on the KC-46 Tanker program. This charge reflects higher costs associated with previously announced program schedule and technical challenges, including implementation of the hardware solution to resolve the refueling boom axial load issue identified during flight testing, delays in the certification process and concurrency between late-stage development testing and initial production.

"This additional investment in the KC-46 supports the delivery timeline for the initial production aircraft and our transition to full-rate production," said Boeing Chairman, President and CEO Dennis Muilenburg.

"With the aircraft recently refueling an F-16, A-10 and C-17, we have now completed all necessary Milestone C testing to receive customer approval to enter production - a major step forward for this multi-decade production and support program. We remain confident in the long-term value of the KC-46 for our customers and our shareholders, he added.