Big Number
$2.8 billion. That’s how much Boeing has likely lost on the Air Force One program since signing the government contract in 2018, Aviation Week reported.
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Why Is Boeing Losing Money On Its Air Force One Contract?
In 2018, Boeing agreed to build two new Air Force One jets for about $3.9 billion under a fixed-price contract, which means Boeing—not the U.S. government—absorbs most cost overruns. The presidential aircraft is more complex than any commercial jet, as it must be transformed into a flying White House with secure global communications, missile-defense systems, aerial refueling capability, hardened wiring systems and more. Several years later, Boeing’s then-CEO Dave Calhoun said the company “probably shouldn’t have taken” the fixed-price contract. On Tuesday, Boeing said this quarter’s $280 million overrun reflects “additional production and certification resources” as it works to keep the program on track for a 2028 delivery. But Boeing executives believe the costs will continue to spiral. “I do expect to see some cost growth there as we come through [final assembly] and we finish off the wiring and the structures, as well as finishing off with certification,” Steve Parker, the head of Boeing’s defense unit, told reporters at Farnborough Airshow this month. Back when the contract was awarded, the U.S. Air Force said the deal was “saving the taxpayers over $1.4 billion.”
Tangent
Last year, President Donald Trump accepted a Boeing 747 presidential aircraft worth $400 million from Qatar, whose prime minister insisted was not a bribe but a “normal thing between allies.” This month, Trump briefly ditched the Qatari jet to fly from Turkey to the U.K. on the old Air Force One due to security concerns—and then switched back to the Qatari plane on his return flight to Andrews Air Force base. Weeks later, Trump said the Qatari jet would get another security upgrade. All told, renovating the Qatari jet will cost taxpayers nearly $1 billion, according to recent estimates. After Trump leaves office, the jet will be transferred to his future presidential library.
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Further Reading
Trump Says Qatar-Gifted Air Force One Will Undergo Another Upgrade For ‘Maxed Out’ Security (Forbes)
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