Washington, DC, July 23 - The United States Air Force has made a pivotal decision to forgo a planned competition for its next round of aerial refueling tankers, opting instead to sole-source up to 75 additional KC-46A Pegasus aircraft from Boeing. This move, announced in July 2025, marks the end of more than a year of speculation regarding the Air Force’s strategy for a “bridge tanker” intended to fill the gap between the current KC-46 fleet and the future Next Generation Air Refueling System (NGAS), previously referred to as KC-Z. The decision reflects a strategic shift toward maintaining continuity in tanker recapitalization while addressing the urgent need to replace the aging KC-135 Stratotanker fleet, some of which date back to the Eisenhower era.
.gif)
The Air Force’s choice to extend KC-46 production stems from a desire to ensure uninterrupted replacement of the KC-135s, which have been in service since the 1950s and are increasingly difficult to maintain. The KC-46, based on Boeing’s 767 commercial airliner, has been the cornerstone of the Air Force’s tanker modernization efforts since Boeing won the KC-X competition in 2011. That contract initially called for 179 aircraft, with deliveries expected to conclude around 2028. The recent decision increases the program of record to 188 aircraft under the current contract, with the additional 75 aircraft forming a “KC-46A Production Extension” program. This extension will begin after the current contract’s final deliveries, ensuring a steady flow of new tankers into the 2030s.
The KC-46 program has not been without challenges. The aircraft has faced technical issues, including problems with its Remote Vision System (RVS), which aids boom operators in refueling, and a “stiff” boom telescope actuator that complicates refueling for certain aircraft, such as the A-10 Thunderbolt II. Additionally, leaks in the fuel system, cracks in some airframes, and issues with the auxiliary power unit have delayed progress. Despite these setbacks, the Air Force and Boeing have made strides in addressing deficiencies, with the KC-46 cleared for worldwide deployments in September 2022 and successfully participating in operations like Operation Midnight Hammer in June 2025, where it refueled B-2 stealth bombers striking Iranian nuclear sites. Air Force Chief of Staff Gen. Dave Allvin has expressed confidence in Boeing’s progress, noting that the aircraft performs well operationally despite ongoing fixes, with RVS improvements expected by summer 2027. The decision to bypass a competition, which would have pitted Boeing’s KC-46 against Airbus’s A330 Multi Role Tanker Transport (MRTT), follows Lockheed Martin’s withdrawal from the competition in 2023 and Airbus’s subsequent decision to compete alone. The Air Force’s fiscal 2026 budget, which includes $81.2 million for KC-46 upgrades and $23.8 million for the production extension, signaled a preference for leveraging the KC-46’s existing production line and capabilities.
This approach avoids the logistical complexities and costs of integrating a new aircraft type, such as the larger A330 MRTT, which would require different training pipelines and maintenance infrastructure. By sticking with the KC-46, the Air Force aims to streamline operations and capitalize on Boeing’s familiarity with U.S. maintenance practices. However, the sole-source decision has implications for the defense industry. Boeing, which has incurred over $7 billion in cost overruns on the fixed-price KC-46 contract, may benefit from a potential shift to a cost-plus contract for the additional aircraft, reducing financial risk. Meanwhile, the Air Force’s long-term vision for NGAS, a potentially stealthy tanker designed for contested environments, remains under development, with the 2026 budget allocating funds only for market research and simulation. This suggests a slower timeline for NGAS, reinforcing the need for the KC-46 as a reliable interim solution. As the Air Force balances modernization with budget constraints, the KC-46’s role as the backbone of its refueling fleet is solidified, ensuring operational capability for years to come.