Iran has struck radar systems, satellite communications and mission-critical aircraft at US bases across Bahrain, Qatar, Kuwait, Saudi Arabia and the UAE.
The KC-46 was to be the ideal candidate for a fixed-price development program. Instead, it has cost Boeing billions, and made industry wary of such deals.
Lockheed's tanker would have been a variation on Airbus's A330 Multi Role Tanker Transport. Airbus now plans to respond to the Air Force's tanker request.
A new restriction bars airmen from turning on the autopilot when flying at an altitude of less than 2,000 feet at night, or when flying in bad weather.