Air Force accepted the first flight delivery despite outstanding aircraft issues. Boeing has agreed to enter the bill for software and hardware upgrades for the camera system used for refueling and the Air Force will fund the redesign of the tanker used to deliver fuel to an aircraft.
The Air Force will also withhold 20 percent of its payment to Boeing until progress has been made on aircraft deficits.
"There are always technical issues when you take a new weapon system like this, and there are actually fewer technical issues than there are at most major purchases we make," said US Air Force Secretary Heather Wilson until Thursday in CNBC in an exclusive interview.
"But Boeing has a fixed-price agreement with which they have worked, and they have agreed with the Air Force to repair the things we have found to be problematic," she added. "Then we are ready to take the next step, which is operational test and evaluation, and get these aircraft into the hands of our airlines."
Boeing, the world's second largest defense company, has a significant number of Pentagon contracts in 201
The defense giant is scheduled to release its fourth quarter and 2018 financial results before the market opens on Jan 30.