Posted on 04/27/2022 12:41:02 PM PDT by CodeToad
The company revealed that it has lost $660 million outfitting the next presidential jets—so far.
Boeing should have rejected then-President Donald Trump’s proposed terms to build two new Air Force One aircraft, the company’s CEO said Wednesday.
Dave Calhoun spoke Wednesday on the company’s quarterly earnings call, just hours after Boeing disclosed that it has lost $660 million transforming two 747 airliners into flying White Houses.
“Air Force One I'm just going to call a very unique moment, a very unique negotiation, a very unique set of risks that Boeing probably shouldn't have taken,” Calhoun said. “But we are where we are, and we're going to deliver great airplanes.”
Then-President Trump, an aviation enthusiast, took a keen interest in the new presidential jets, involving himself in everything from contract negotiations to the plane’s color scheme. As part of the deal, Boeing signed a fixed-price contract that required the company, not taxpayers, to pay for any cost overruns during the complicated conversion of the two airliners.
In February 2018, the Air Force signed a nearly $4 billion deal with Boeing to convert two 747-8 airliners into a VIP configuration with conference rooms, sleeping quarters, communications gear, and amenities that allow the president to work as if he were at the White House. Along with other costs related to building the planes—for instance, a new hangar complex at Joint Base Andrews just outside of Washington—the Air Force One program is expected to cost taxpayers $5.3 billion.
When the deal was finalized, the White House claimed Trump’s negotiations saved taxpayers $1.4 billion. Boeing’s struggles to build the new planes might in fact save taxpayers more than that when the planes are finally delivered.
(Excerpt) Read more at defenseone.com ...
Gee, Bad Man Orange not so bad after all. Left said a Trump was a poor businessman, well what does that make head of Boeing?
That’s what happens when hiring people because of race and sex.
As if Boeing hasn’t made much off of the American government.
They report this like its a bad thing. I worked for a defense/aerospace contractor through the 80’s. They have been ripping the taxpayers off and funneling money to corrupt politicians for years. It’s about time they get locked into fixed cost contracts. The private sector has to do it.
Over all the decades, how much has Boeing profited from US contracts ?
betcha’ more than a trillion.
I swear I read somewhere the other day that Boeing was manipulating one of these planes on a jack that was not highly rated and bad things happened.
Strange I cannot find now.
I am quite certain that the COST of the materials has skyrocketed due to the inflation under the Biden admin, under Trump I felt very confident retiring, NOW I have had to take on a part time job I honestly can’t believe how expensive EVERYTHING has become!! I don’t know how in the hell people with kids are surviving!!
“Trump made a great deal. Boeing sucks at managing their company.”
Yes, Boeing did not pad the deal enough up front, knowing the history of the industry and of their own company, where cost overruns are nearly inevitable; they should have asked for more and held out for it. The only way to win with DJT is tit-for-tat, otherwise you will get the short end of the stick. Good for DJT, not good for you. Just ask the many banks he dealt with in his real estate deals.
The art of the deal!
Give the CEO a bonus. Isn’t that how it works for woke CEO’s that lose money?
He left Boeing with $60 million in stock options and pension benefits then went on to become CEO of a SPAC in the aerospace industry.
CEO sounds like some kind of eunuch.
Taxpayers matter. WE got a great deal. If they were dumb enough to sign a fixed price well.... when in doubt read the contract.
Fixed price. Extremely rare unless its a product with many repeatable units (think F-16). NEVER on two units and really NEVER when its the first time product.
Of course they wanted to reject it, they were stopped from stealing hundreds of millions from taxpayers.
I was planning on retiring next year, now I don’t know...............
LOL - Boeing is saying they had a deep-state troll, like Austin, next to someone like Biden, they would be getting cost-plus-plus-plus deal
The defense industry is accustomed to billing the government for incompetence that results in huge cost overruns. When incompetence is rewarded, incompetence flourishes and grows.
Boeing is used to cost overruns (they often cause) they get Defense to pay for. Trump wasn’t going to have any of that.
I had an office at Boeing in El Segundo, CA for several years when my company was teamed with them on two different satellite pursuits. They were super woke on gay issues. They could probably have made a profit on the Air Force One contract if they did not have so many employees hanging out at the urinals.
“naaa... they need to finished by 2025 so Trump can take deliver upon re-entering the white house :)”
That would be awesome!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.