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CEO: Boeing Should Have Rejected Trump’s Air Force One Deal
Defense One ^ | Wednesday, 27 April 2022 | Marcus Weisgerber

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 ...


TOPICS: Business/Economy; Government
KEYWORDS: boeing; chat; chatforum; trump
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To: Telepathic Intruder

boeing’s worker union(s) are a big suck on the quality, timing and cost overruns associated with their product delivery.


41 posted on 04/27/2022 1:05:36 PM PDT by waicool
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To: Lockbox

“Left said a Trump was a poor businessman, well what does that make head of Boeing?”

The heads of Boeing are not very competent.


42 posted on 04/27/2022 1:06:13 PM PDT by CodeToad (Arm up! They Have!)
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To: JoSixChip
It’s about time they get locked into fixed cost contracts. The private sector has to do it.

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.

43 posted on 04/27/2022 1:06:30 PM PDT by Cuttnhorse
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To: CodeToad
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.

Obviously should be standard in any government deal, but of course, it's hard to hide the grift without endless cost increases.

44 posted on 04/27/2022 1:06:36 PM PDT by dead (https://www.youtube.com/watch?v=D_vFiUUcBkc)
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To: algore
Strange I cannot find now.

Boeing factory problems disrupt new Air Force One production: report

45 posted on 04/27/2022 1:06:55 PM PDT by TangoLimaSierra (⭐⭐Public hangings will wake 'em up.⭐⭐)
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To: Lockbox

“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.


46 posted on 04/27/2022 1:06:56 PM PDT by CodeToad (Arm up! They Have!)
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To: Starboard

Yeah I didn’t think he was gonna be living in a refrigerator box under an overpass.


47 posted on 04/27/2022 1:07:33 PM PDT by V_TWIN (America...so great even the people that hate it refuse to leave)
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To: MtnClimber
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.

LOL...good one!

48 posted on 04/27/2022 1:08:07 PM PDT by Cuttnhorse
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To: MtnClimber

Boeing is typically large company where everyone has to be involved in taking credit but never accepting blame.


49 posted on 04/27/2022 1:08:52 PM PDT by CodeToad (Arm up! They Have!)
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To: Cuttnhorse

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.


50 posted on 04/27/2022 1:10:11 PM PDT by CodeToad (Arm up! They Have!)
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To: Cuttnhorse

You need to negotiate the price of every change to the original plan.


51 posted on 04/27/2022 1:10:14 PM PDT by dead (https://www.youtube.com/watch?v=D_vFiUUcBkc)
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To: CodeToad

$2 billion per plane? Is it gold plated with diamond studded rivets?


52 posted on 04/27/2022 1:13:15 PM PDT by Rebelbase
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To: Rebelbase

No, but the executive bonuses would be.


53 posted on 04/27/2022 1:18:11 PM PDT by CodeToad (Arm up! They Have!)
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To: CodeToad

Sheesh, a CEO complaining sour grapes in public is very unbecoming. It’s not our fault that Boeing couldn’t negotiate a good contract!


54 posted on 04/27/2022 1:18:11 PM PDT by ProtectOurFreedom (Instead of criminalizing guns, we need to criminalize criminals.)
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To: Magnatron

By signing Fixed Price, not Cost Plus Fixed Fee.


55 posted on 04/27/2022 1:19:10 PM PDT by ProtectOurFreedom (Instead of criminalizing guns, we need to criminalize criminals.)
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To: ProtectOurFreedom

Dave seems to do that thinking he is being honest.


56 posted on 04/27/2022 1:19:37 PM PDT by CodeToad (Arm up! They Have!)
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To: dead
You need to negotiate the price of every change to the original plan.

That is how it works...and every price change goes to the overall project $$ commitment.

57 posted on 04/27/2022 1:20:39 PM PDT by Cuttnhorse
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To: CodeToad

He is the CEO. Enjoy the suck. It’s on you. Bye Bye.


58 posted on 04/27/2022 1:21:32 PM PDT by Hyman Roth
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To: CodeToad

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.


59 posted on 04/27/2022 1:21:33 PM PDT by ProtectOurFreedom (Instead of criminalizing guns, we need to criminalize criminals.)
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To: CodeToad

Adn they had so many meetings that people could not get their work done.


60 posted on 04/27/2022 1:21:58 PM PDT by MtnClimber (For photos of Colorado scenery and wildlife, click on my screen name for my FR home page.)
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