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 ...
boeing’s worker union(s) are a big suck on the quality, timing and cost overruns associated with their product delivery.
“Left said a Trump was a poor businessman, well what does that make head of Boeing?”
The heads of Boeing are not very competent.
I'm not defending Boeing or gov contractors: BUT, having spent a career in the contract/construction management bidness, (multi-Billion $$ mine projects all over the world), one of the frustrating things that happens are change orders. Changes in specifications to the project are most often the reason for large cost overruns.
I know how this works...half way through the project someone decides they want another door here, or an upgrade to the avionics, or a complete remodel of the president's lounge area, and costs go through the roof.
Not always the way it works, but trust me, it is often the reason for large cost overruns.
Obviously should be standard in any government deal, but of course, it's hard to hide the grift without endless cost increases.
Boeing factory problems disrupt new Air Force One production: report
“Left said a Trump was a poor businessman, well what does that make head of Boeing?”
How do you make a $50 billion company? Let liberals manage a $100 billion company.
Yeah I didn’t think he was gonna be living in a refrigerator box under an overpass.
LOL...good one!
Boeing is typically large company where everyone has to be involved in taking credit but never accepting blame.
Change orders are ALWAYS paid for by the customer making the request. They should never be a debit to the vendor and wouldn’t be with this contract.
You need to negotiate the price of every change to the original plan.
$2 billion per plane? Is it gold plated with diamond studded rivets?
No, but the executive bonuses would be.
Sheesh, a CEO complaining sour grapes in public is very unbecoming. It’s not our fault that Boeing couldn’t negotiate a good contract!
By signing Fixed Price, not Cost Plus Fixed Fee.
Dave seems to do that thinking he is being honest.
That is how it works...and every price change goes to the overall project $$ commitment.
He is the CEO. Enjoy the suck. It’s on you. Bye Bye.
Yeah, we are all supposed to weep tears of sympathy for him?
Fat chance!
I imagine the Dems might, but they HATE corporations and HATE profits. Conversely, they must LOVE huge losses. So the Dems are probably happy about this.
Adn they had so many meetings that people could not get their work done.
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