Air Force Boosts Ceiling on Boeing Tanker Deal to $19.1 Billion

The U.S. Air Force has increased the ceiling on its Foreign Military Sales contract for the Boeing KC-46A Pegasus tanker to $19.1 billion from $5.7 billion, with no new aircraft ordered.

This modification, worth $13.4 billion, allows the Air Force to process sales to additional countries under the same contract, in addition to Japan and Israel, which have already purchased KC-46As.

The increased ceiling means that if another country signs on later or if existing buyers want more aircraft, the Air Force can handle the business without starting from scratch each time.

The KC-46A is a modern aerial refueling tanker built on the frame of Boeing's 767 commercial airliner and will eventually replace the Air Force's KC-135 Stratotankers.