Air Force Holds Back $336 Million on Flawed Boeing Tanker

  • Service is paying out funds gradually as problems resolved
  • A new tactic after years of frustration over the plane’s flaws
A U.S. Air Force KC-46 tanker aircraft.Source: Boeing Co./U.S. Air Force
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The U.S. Air Force has set aside $336 million in development payments for Boeing Co. and is doling out the funds over time as the contractor shows progress in fixing the flawed camera system on its KC-46 tanker plane.

It’s a new tactic after years of frustration at the Pentagon over persistent problems with the $44 billion tanker program that Boeing was awarded in 2011. So far, $135 million of the previously undisclosed set-aside has been released, according to the service.