Boeing Charged Japan 1,500% Markup on Part, Air Force Says
- Price for KC-46 navigation light questioned but deemed needed
- Boeing says it negotiated in ‘good faith’ during parts talks
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Boeing Co. charged the Japanese government an “excessive” price for some spare parts for its refueling tanker plane, as much as 16 times more than the U.S. Air Force paid for its latest versions, according to a service assessment.
In one example involving an April $79 million spare parts contract for the KC-46 tanker, Japan was billed for navigation lights made by subcontractor Honeywell Inc. “at a unit price more than 1,500% above the previous unit price,” according to the previously undisclosed Air Force summary prepared last month.