The US Department of Defense has awarded Boeing contracts exceeding $7 billion for the production of AH-64E Apache helicopters for the US Army, along with additional KC-46A Pegasus aerial refueling and transport aircraft for the US Air Force. This significant investment underscores the Pentagon’s ongoing commitment to modernizing and expanding its military aviation capabilities.
The contracts include a $4.6 billion firm-fixed-price agreement with the US Army for new AH-64E Apaches, alongside crew trainers for the helicopter’s Longbow variant, and other necessary components and support. The work will take place in Mesa, Arizona, and is scheduled to continue until May 2032. Notably, approximately $2.2 billion of this funding will come through foreign military sales to allied nations such as Poland, Egypt, and Kuwait. The new contract will extend the Apache production line beyond its initial 2028 closure date.
The AH-64E version is the latest iteration of the well-established Apache attack helicopter platform, which has been in service since the 1980s and has accumulated over five million flight hours. This modern variant utilizes an open architecture system, enabling flexible updates to sensors, weapons, and software to effectively counter evolving threats.
In addition to the Army contracts, Boeing is set to receive a $2.4 billion contract modification from the US Air Force for the latest production run of KC-46A refueling tankers. This modification encompasses 15 aircraft and relevant mobility data system licenses, with production occurring in Seattle and expected to be completed by June 2029. This addition will bring the total global orders for the KC-46 to 183 units.
The KC-46, based on the Boeing 767 airframe, plays a vital role in replacing the aging KC-135 Stratotankers that have been in service since the Eisenhower administration. Despite facing ongoing design challenges with its Remote Vision System and refueling boom, the Air Force continues to focus on acquiring new tankers to ensure there are no gaps in production as part of broader modernization efforts.
Moreover, the US Air Force has designated McGhee Tyson Air National Guard Base in Knoxville, Tennessee, as the preferred location for the next KC-46A operating base. This installation was first announced in September 2024 as one of seven candidate sites. The base’s 134th Air Refueling Wing has undertaken significant facility upgrades, including the construction of a new 10,000-foot runway costing $134 million, along with a $32.4 million maintenance hangar specifically designed for KC-46 operations.
Maj. Gen. Duke Pirak, acting director of the Air National Guard, emphasized the significance of the KC-46’s advanced capabilities and reliability, stating that the 134th Air Refueling Wing is well-suited to take on this new responsibility, enhancing the operational reach of the Air Force amid evolving global challenges.
