Given the Air Force’s wide-ranging needs and budget constraints, a dual buy of new tanker aircraft isn’t viable, Air Force Secretary Michael Donley told the House Armed Services Committee Tuesday. “This would be an expensive way to proceed,” he said. The Air Force plans to award a singled KC-X tanker contract later this year and then procure about 15 new airframes annually from that supplier until the 179-aircraft recapitalization is complete. If there were two suppliers, then “the minimum economic order for each line would probably be about 12 aircraft,” meaning the annual buy would jump to 24 tankers, Donley explained. Not only would that be “very inefficient,” it would also cause “a big bump” in the service’s budget and divert funds from other priorities. “We have to manage this procurement in the context of all other things that the Air Force is doing,” he said.
The Air Force and Boeing agreed to a nearly $2.4 billion contract for a new lot of KC-46 aerial tankers on Nov. 21. The deal, announced by the Pentagon, is for 15 new aircraft in Lot 11 at a cost of $2.389 billion—some $159 million per tail.