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.”

 

Advertisements
Comments
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”

    http://everettwablog.com/?p=2216

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

  • Enter your email address to follow this blog and receive notifications of new posts by email.

%d bloggers like this: