Boeing and the USAF Tanker Program: The Plot Thickens!
Boeing (BA) apparently is considering proposing on the upcoming USAF Tanker Program re-bid with versions of two of its models — the 767 and the 777 — in the hopes that one of them will be selected over the single Northrop Grumman (NOC)/Airbus A330-based submittal. The following is provided for those of you interested in the specifications — and the differences — between the three aircraft (for the Boeing 777-based version, we have used data for the 777 Freighter as being probably closest to the final configuration):
In case you’ve forgotten, the current KC-767 has no cargo capacity, as it is solely an aerial-refueling tanker, which is what Boeing may have thought USAF wanted during the last tanker tussle. Instead, USAF picked a version of the A330 MRTT — an aircraft with cargo capability — which means it can also be configured as a troop carrier, which may be one of the reasons USAF doesn’t want any more C-17s.
It’s all becoming clearer now: if you’re not going to buy KC-767s and you’re not going to procure more C-17s, the least USAF can do is buy KC-777s. Not only that, but Boeing reportedly is thinking about producing the KC-777 aerial tanker in Everett, which would make most of us living in Western Washington State a bit happier than even the last thirty days without rain have done.
If you take a look at the specifications, you will notice that the A330 MRTT is sandwiched in between the KC-767 and KC-777. However, if USAF wants a multipurpose aircraft with the most capability, the KC-777 is quite possibly the aircraft of choice.
In any event, the re-bid is a happening thing, and we may soon know if U.S. commercial aircraft production will continue to be centered in the Pacific Northwest or will begin to shift to the Gulf Coast — for if the A330 MRTT wins, it will be completed in Mobile, Alabama…and once Airbus has a toe-hold in the USA, there’s no telling what comes next.
Incidentally, USAF’s version of the A330 MRTT was ultimately dubbed the KC-45, so as to not confuse it with anyone else’s A330 MRTT tankers.
Let the bidding begin!
Read the full analyst report on “BA”
Read the full analyst report on “NOC”
Zacks Investment Research
