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Boeing Receives US Air Force Contract to Build Next-Generation Refueling Tanker

ST. LOUIS, Feb. 24, 2011 — The Boeing Company [NYSE: BA] has received a contract from the U.S. Air Force to build the next-generation aerial refueling tanker aircraft that will replace 179 of the service’s 400 KC-135 tankers.
The contract calls for Boeing to design, develop, manufacture and deliver 18 initial combat-ready tankers by 2017.
“We’re honored to be given the opportunity to build the Air Force’s next tanker and provide a vital capability to the men and women of our armed forces,” said Jim McNerney, Boeing chairman, president and CEO. “Our team is ready now to apply our 60 years of tanker experience to develop and build an airplane that will serve the nation for decades to come.”

In selecting the Boeing NewGen Tanker after a lengthy and rigorous proposal process, the Air Force has chosen an American-built, multi-mission tanker that is based on the proven Boeing 767 commercial airplane and meets all requirements at the lowest risk for the warfighter and the best value for taxpayers. The Boeing proposal was created by an integrated “One Boeing” team from various sites across the company, including employees from the Commercial Airplanes; Defense, Space & Security; and Engineering, Operations & Technology organizations.
“This contract award would not have been possible without the hundreds of Boeing employees across the entire company, and the thousands of our industry teammates, who remained laser-focused on our commitment to offer a solution that is first in capability and best in value,” said Dennis Muilenburg, president and CEO of Boeing Defense, Space & Security. “This award is also a tribute to the Air Force and Defense Department officials who worked so tirelessly to make this procurement process fair, ultimately resulting in the selection of the right plane for the mission. We look forward to working with our Air Force customer to deliver this much needed capability to the servicemen and women we are honored to serve.”

The KC-46A tankers will be built using a low-risk approach to manufacturing by a trained and experienced U.S. work force at existing Boeing facilities. The KC-46A tanker also will fuel the economy as it supports approximately 50,000 total U.S. jobs with Boeing and more than 800 suppliers in more than 40 states.

“Boeing has always been committed to the integrity of the competitive process, and the men and women across our Boeing commercial and defense teams and our entire supplier network are ready to extend that commitment to delivering these tankers on time and on budget,” said Jim Albaugh, president and CEO of Boeing Commercial Airplanes.

Based on the proven Boeing 767 commercial airplane, the KC-46A Tanker is a widebody, multi-mission aircraft updated with the latest and most advanced technology and capable of meeting or exceeding the Air Force’s needs for transport of fuel, cargo, passengers and patients. It includes state-of-the-art systems to meet the demanding mission requirements of the future, including a digital flight deck featuring Boeing 787 Dreamliner electronic displays and a flight control design philosophy that places aircrews in command rather than allowing computer software to limit combat maneuverability. The NewGen Tanker also features an advanced KC-10 boom with an expanded refueling envelope, increased fuel offload rate and fly-by-wire control system.

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    Forward-Looking Statements
    Certain statements in this report may be “forward-looking” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “targets,” “anticipates,” and similar expressions are used to identify these forward-looking statements. Forward-looking statements are based upon assumptions about future events that may not prove to be accurate. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements. As a result, these statements speak to events only as of the date they are made and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by federal securities laws. Specific factors that could cause actual results to differ materially from forward-looking statements include, but are not limited to, statements we make regarding our guidance relating to future financial and operating performance, the effect of economic conditions in the United States and globally, and general industry conditions as they may impact us or our customers, as well as the other important factors disclosed previously and from time to time in our other filings with the Securities and Exchange Commission.

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