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October 19, 2018Loren B. Thompson, Ph.D

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The Latest Delay On Boeing’s $44 Billion Air Force Tanker Program Isn’t As Bad As It Seems (From Forbes)

October 19, 2018Loren B. Thompson, Ph.D

Bloomberg News reported this week that there will be yet another delay in delivery of the first Boeing KC-46 Pegasus tankers to the Air Force.  After so many delays on the program, you’d think Boeing execs would be upset.  But they aren’t, because this time the delay is being caused by a serpentine certification process within the government.  There are no new problems with the tanker.  In fact, tests have shown the system works well, and is ready to join the active fleet.  Boeing figures the program could eventually generate $100 billion in revenues, so although it has been a bit of a problem up to this point, it still looks like a valuable franchise over the long run — one not subject to the ups and downs of the commercial transport demand cycle.  I have written a commentary for Forbes here.

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