US Air Force Has Withheld $360M — and Counting — for Boeing’s Tanker Woes (excerpt)
(Source: Defense One; posted July 24, 2019)
The U.S. Air Force has withheld $360 million from Boeing due to problems with the company’s KC-46 tanker, according to a service official. It’s the first time the Air Force has disclosed the total amount being held back until Boeing fixes various problems with the planes.

Service officials previously said they could withhold up to $28 million per plane, roughly 20 percent of its delivery cost. Wednesday’s disclosure shows that the Air Force is following through with that pledge. To date, Boeing has delivered 13 tankers to the Air Force, meaning the firm has been shorted nearly $27.7 million per plane.

“The Air Force is withholding payments to protect our interests and incentivize Boeing to deliver KC-46s that meet all specification requirements in the contract,” Capt. Cara Bousie, an Air Force spokeswoman, said in an email Wednesday. “To date, the Air Force has withheld approximately $360 [million] from Boeing for KC-46s delivered so far.” (end of excerpt)


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