The KC-46A Pegasus tanker generated a $275 million loss for Boeing in the last quarter of 2020. According to Boeing CFO Greg Smith, the losses come from problems with production efficiency, "including the impacts of Covid-19".
Adding up the annual losses since 2014, the program has already brought in $5.1 billion in losses for the Seattle-based manufacturer. The loss of $1.32 billion in 2020 alone (not counting fees) was the biggest in the program's history.
David Calhoun, CEO of Boeing, said that “The tanker has been an obstacle for us for three or four years, in every way you can imagine, with respect to investors. But we are starting to get over the hurdle with our customer in of performance in their fleet and then the need for the aircraft.”
One of the biggest problems with the KC-46 is the remote vision system, a series of cameras designed to help the operator guide the in-flight refueling (REVO) boom to the receiving aircraft.
Cameras are producing distorted or washed out images, making REVO operation risky. In the first quarter of 2020, Boeing lost $827 million to cover the cost of redeg the refueling cameras.
Boeing delivered 14 KC-46A Pegasus to the US Air Force (USAF) last year, half the number of aircraft delivered in 2019. The company claims that production and design problems and delays due to the pandemic are mainly responsible.
The USAF is expected to acquire up to 179 KC-46s to replace aging KC-135 Stratotankers. Last week the institution closed another contract with Boeing, bringing the number of aircraft contracted to 94. Japan also acquired four planes.
With Flightglobal
