Analyst: Boeing more likely to offer KC-767

While Boeing officially is offering the Air Force two tanker choices, Leeham Co. analyst Scott Hamilton says the Company would really prefer to offer it just one, the KC-767.

Among the reasons: Boeing has lost billions due to cost over-runs on the 787 and 747-8, he says. The Company also must consider big-ticket upgrades — or outright replacesments — for the 777 and 737 in the next decade. And while he didn’t say it, we will: Boeing has also committed itself to sinking as much as $2.5 billion into South Carolina, in its attempt to duplicate facilities it already has here on Puget Sound. That’s money that should have been invested in ventures that will earn actual profits, like the $35 billion tanker contract, which is likely to be the largest Pentagon procurement contract ever.

Given all that, spending a few billion more to take the KC-777 from paper airplane to reality isn’t feasible, Hamilton says, and that makes the KC-767 the only viable choice. “Boeing simply cannot afford another new airplane program right now,” Hamilton writes. “Financially, it makes far more sense to offer this airplane to the Air Force.”


One Response to “Analyst: Boeing more likely to offer KC-767”
  1. Trader Vic says:

    Have you seen the cartoon from South Carolina that called Boeing workers “whiney, unionized, know-it-all, Yankees”

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