Boeing Wins a $251M Contract for KC-135 Refueling Tanker Aircraft

Zacks Equity Research
4 min read

In This Article:

The Boeing Company BA recently secured a modification contract worth $251.4 million for the production of fan duct transactional spares for KC-135 aerial refueling tanker aircraft. The award has been offered by the Defense Logistics Agency Aviation, Tinker Air Force Base, OK.

Significance of BA’s KC-135

Boeing’s KC-135 Stratotanker is an aerial refueling aircraft that provides core aerial refueling capability for the U.S. Air Force and has excelled in this role for more than 60 years.

The KC-135 is also capable of transporting litter and ambulatory patients using patient support pallets during aeromedical evacuations. Over the years, this aircraft has been altered to perform a variety of operations ranging from flying command post missions to reconnaissance.

BA’s Place in Military Aviation Market

Apart from holding a lion's share of the commercial aviation industry along with Airbus, Boeing is a renowned manufacturer of combat aircraft. Its Defense, Space & Security business segment engages in the research, development, production and modification of manned and unmanned military aircraft as well as commercial derivative aircraft, including anti-submarine and tanker aircraft.

Some of its renowned combat-proven jets are the C-17 Globemaster III, F/A-18 Super Hornet, EA-18G Growler, P-8 and F-15EX. The dominant position that Boeing enjoys in the aerial defense space, particularly in the United States, can be gauged from the fact that it has always been the primary aircraft supplier for the nation’s Air Force One program. Impressively, once Boeing 747-8 takes flight as the next Air Force One, its airplanes will mark more than half a century of U.S. presidential service.

Growth Prospects for BA Stock

In recent times, rapidly increasing hostilities worldwide, especially the unrest witnessed in different parts of the Middles East, along with the rising complexity of warfare as well as technological advancements in arms and ammunition, have prompted nations across the globe to significantly boost their defense structure in the form of increased investments in military products. Since aerial security plays a critical role in defending a nation’s border from unprecedented attacks, demand for state-of-the-art, agile, combat-proven aircraft has been on the rise.

As modern military strategies emphasize rapid deployment, long-range strike capabilities and sustained air patrols, advanced refueling support offered by multi-role refueling tanker jets like KC-135 remains the need of the hour. The latest contract win by Boeing is a bright example of that.

Recommended Stories