Report: Air Force tanker program $1B over budget

Boeing’s new refueling tanker program will cost $1.1 billion more than initially planned, according to a new Air Force estimate.

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Reuters reports that the latest estimate of the cost of the KC-46A tanker program was $5.85 billion, an increase of $250 million over last year’s projection.

But under the terms of the Air Force’s contract, Boeing will have to pay for the additional costs over the cap of $4.9 billion.

“Despite this estimated increase, the government liability remains capped at the contract ceiling price of $4.9 billion, and Boeing continues to meet all contractual milestones, including the development and delivery of the four EMD aircraft," Air Force spokesman Ed Gulick said.