Boeing said on 17 July it will take a USD536 million charge on the US Air Force (USAF) KC-46A Pegasus tanker development programme due to higher-than-anticipated engineering and manufacturing costs. The charge "reflects higher estimated engineering and manufacturing costs to complete development, certification, and initial production of the tanker aircraft", said the company. Boeing must absorb any development costs in excess of the USD4.9 billion allowed under a fixed-price contract with the Pentagon.
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