Lockheed Martin Exits U.S. Air Force Tanker Competition, leaving Boeing KC-46 as Sole Contender

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Lockheed Martin Corp has withdrawn from the U.S. Air Force’s competition to build at least 75 refueling tankers, enhancing Boeing’s KC-46 Pegasus prospects in the multi-billion dollar Air Force contract.

«Lockheed Martin has decided not to respond to the U.S. Air Force’s KC-135 fleet recapitalization Request for Information (RFI)», said the company in a statement.

«We are transitioning Lockheed Martin’s LMXT team and resources to new opportunities and priority programs within Lockheed Martin, including development of aerial refueling solutions in support of the U.S. Air Force’s Next-Generation Air-Refueling System (NGAS) initiative. We remain committed to the accelerated delivery of advanced capabilities that strengthen the U.S. Air Force’s aerial refueling missions», they conclude.

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The withdrawal is a major blow to Airbus’ attempt to deepen its presence in the always profitable US Defense market. So far, the European manufacturer has secured several helicopters and some small to medium transport/ multipurpose aircraft deals, supplying the US Army and US Coast Guard, among other agencies.

Airbus collaborated with Lockheed in 2018 to propose its A330 multi-role tanker transport. Now, the question arises: will the French aerospace titan continue in the competition without Lockheed’s support?

«Airbus remains committed to providing the U.S. Air Force and our warfighters with the most modern and capable tanker on the market,» stated an Airbus spokesperson. The company had plans to set up an A330 production line for the LXMT in Mobile, Alabama, while Lockheed Martin aimed to perform the conversion to tanker in Marietta, Georgia.

USAF’s new tanker: Airbus to manufacture A330s in Alabama, Lockheed Martin to convert to LXMT in Georgia

The Air Force has been on a mission to replace several old KC-135 tankers in three phases. Boeing’s KC-46 Pegasus, despite its challenges like defects in its on-board video system and the refueling boom, won the contract for the first phase.

Following Boeing’s contract for 179 KC-46 Pegasus planes, the Air Force initiated a contest for its second batch of 140 to 160 jets in 2022.

Historic Win for Boeing

In 2011, Boeing secured the first phase of the three-step procurement process with a contract for 179 KC-46s. This program has subsequently faced over $7 billion in losses.

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