Business & Finance
24 October 2023, 5:39 pm 1 minute
Reuters was firs to report that Lockheed Martin Corp (LMT.N) has withdrawn from the U.S. Air Force’s competition to build at least 75 refueling tankers, giving Boeing’s (BA.N) KC-46 Pegasus a boost in the closely watched multibillion-dollar defense contract.
Market Impact
Lockheed’s pullback gives Boeing a boost, greatly increasing the chance it will win the program despite years of costly mistakes with the existing fleet of KC-46 tankers. Based on current prices, the total order could equal around $12 billion, but is likely to be higher. The KC-46, however, has been plagued by defects, including problems with an on-board video system and a refueling boom that fails to connect the tanker to aircraft seeking refueling. These errors have cost Boeing $7 billion in losses.
Article Tags
Topics of Interest: Business & Finance
Type: Reuters Best
Sectors: Aerospace & Defence
Regions: Americas
Countries: US
Win Types: Speed
Story Types: Exclusive / Scoop
Media Types: Text
Customer Impact: Important Regional Story
Credit
1: https://www.reutersagency.com/en/reutersbest/article/lockheed-exits-air-force-tanker-competition-lifting-boeings-kc-46/
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