WASHINGTON (Reuters) – The U.S. Air Force has recommended the release of up to $924 million in payments to Boeing that were held back due to flaws in KC-46 air refueling tanker, according to memo seen by Reuters and a source familiar with the situation.
The recommendation, which was sent to Air Force contracting officials, is aimed at maintaining the financial health of the suppliers to the Department of Defense, and will free up funding for numerous contractors, not just Boeing.
Boeing’s financial situation has become increasingly precarious as economic fallout from the coronavirus has frozen key lending markets and cut off demand for Boeing’s commercial aircraft.
(Reporting by Mike Stone; Editing by Chizu Nomiyama)
