A U.S. Air Force Boeing KC-46A Pegasus refuelling aircraft is pictured upon take off on Lajes Portuguese Air Force Base, on the Portuguese Azores island, on June 21, 2025. (Photo by Antonio Araujo / AFP) (Photo by ANTONIO ARAUJO/AFP via Getty Images)
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A day after NASA announced it had slashed the number of astronaut missions involving the Boeing Starliner and reduced the scope of the spacecraft program, the Department of Defense awarded the aerospace giant two contracts valued at more than $7 billion.
That included $4.69 billion for additional Apache helicopters for the United States Army and $2.47 billion for Lot 12, a contract for 15 more KC-46 Pegasus aerial refuelers for the United States Air Force.
Boeing’s Mesa, Arizona, facilities will perform work on the new-build Apache AH-64E attack helicopters. The company will also provide Longbow crew trainers, associated components, spare parts, accessories, and support. The Army Contracting Command at the Redstone Arsenal, Alabama, was the contracting activity. The estimated completion date is May 30, 2032. Nearly half of the contract, roughly $2.3 billion, was covered by the Foreign Military Sales, with the helicopters destined for U.S. allies Poland, Egypt, and Kuwait.
The KC-46 tankers contract, issued by the Air Force Life Cycle Management Center at Wright-Patterson Air Force Base, Ohio, is scheduled to be completed by June 30, 2029. Work on the aircraft will be performed in Seattle, Washington.
Advanced And Proven Attack Helicopter
The AH-64E Apache is the latest variant of the Boeing helicopter, which first entered service in 1984. More than 1,280 of the rotary wing aircraft are now in service, accumulating over five million flight hours, including 1.3 million in combat operations.
The Apache has been widely deployed to global hotspots, first seeing combat in December 1989 during Operation Just Cause in Panama. It gained international recognition during the Gulf War in 1991, where it was used to attack Iraqi radar and armored formations.
More than a dozen U.S. partners have adopted the AH-64. NATO member Poland is the second-largest operator after the United States Army, with approximately 750 in service as of this year.
The AH-64E was previously slated to remain in production until at least 2028, but this contract will extend the program and keep the manufacturing lines running into the early 2030s. The Apache is also likely to remain in service with the U.S. Army and foreign partners until the 2060s and beyond. Its Modular Open Systems Architecture allows for it to be upgraded as new technology is introduced.
The Air Force Wants Another Lot Of Tankers
Development of the KC-46A Pegasus, based on the Boeing 767 jet airliner, began in 2011. It was subsequently selected by the U.S. Air Force as the winner of the KC-X tanker competition to replace the aging Boeing KC-135 Stratotankers, and the first Pegasus was delivered to the service in January 2019.
The new Lot 12 contract for the additional 15 KC-46As won’t exceed the 183-aircraft cap imposed by Congressional lawmakers earlier this year. The limit remains in place until the Pentagon confirms that a corrective action plan is in place to address design deficiencies in the aircraft, notably the Remote Vision System (RVS) and the refueling boom. Lawmakers have forced the Air Force to maintain its aging fleet of Stratotankers while the issue is resolved.
There has been speculation that once the kinks are worked out with the Pegasus, the Air Force may cancel its Next Generation Aerial Refueler (NGAS) and stick with the KC-46.
Earlier this month, McGhee Tyson Air National Guard Base near Knoxville, TN, was selected as the preferred location for the future KC-46A Pegasus Main Operating Base 7.
“As the global environment evolves, so must we,” said U.S. Air Force Maj. Gen. Duke Pirak, acting director, Air National Guard. “The KC-46’s advanced capabilities, increased reliability, and enhanced operational reach make us better able to meet this critical moment and the demands of tomorrow. The 134th ARW is a great fit for this responsibility.”