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 ...
But... how much has Boeing made from the 14 billion the taxpayers have spent on the proxy war in Ukraine.
“How the hell do you lose money on a government contract??? “
When you negotiated with a great America First president.
“What he’s saying is Trump made a great deal for the taxpayers.”
So when is Liz Warren going to thank President Trump for sticking it to one of the country’s wealthiest corporations?
Crickets...
Back when bambie has his boney ass in our WH Sikorsky Aircraft was up for a new contract for the Presidential helo program and wanted millions more than the last.
Surprisingly enough the fed gov told them they could just get a military depot level aircraft rework facility to do the work instead. Turns out my facility was selected.
Sikorsky thought it was a bluff and called for an audit of our capabilities assuming we’d fail the audit.
However the audit revealed our facility did indeed have all the capabilities needed to service the Presidential helo...much to Sikorskys surprise I would imagine.
What resulted was sikorsky agreeing to a contract that IIRC was 10 million less they they initially wanted.
As I look back on that, my facility was more than likely nothing more than a pawn for negotiating a better contract.
Whoever pulled that off was pretty sharp.
Exactly.
If they didn’t make a sh*t plane in the 737 max and cover it up, they’d be in a much better place now and wouldn’t be complaining about this.
At the same time, go through your existing stuff and sell off things you don’t need anymore that are taking up space.
Its pretty nice feeling like your place just got bigger because its not crammed with stuff you might not need, but can make money from because they have value.
Should have bought and retrofitted a couple of used A380s from Air France. Would have served Boeing right. :)
Expect production over-runs with these vindictive jerks.
Two years minimum…
and amenities that allow the president to work as if he were at the White House
______________________________
I would be worried if Bill Clinton was POTUS. At least now it is still illegal for putting little girls in various closets to be brought out when needed. Oh, I forgot Brandon is POTUS, so. . .
“The company revealed that it has lost $660 million outfitting the next presidential jets—so far.”
For all the money you make on all the other stuff we purchase and you complain you ate it on one purchase?
Perhaps it was a good deal, until Biden inflation showed its ugly head?
All of us have just traded in our old gas powered cars and trucks and swapped them for new $70,000 electric vehicles and now we don't have to buy gas anymore! The savings are immense! So now I can pay for my children's college education in underwater basket weaving and buy a houseboat for pleasure!
Of course, the $1400 monthly car payment is a b***h and filling it up takes about two hours. But I feel good about helping President Biden save the environment and fight racism and homophobia. (do I need a tag here?)
LOL, LOL, I definitely needed the laugh today!!!
“Trump made a great deal. Boeing sucks at managing their company.”
I’d say that’s likely because Boeing deals mainly with Gov. bureaucrats with lots of taxpayer money who will pay them whatever they ask for. Then they had to deal with a business man.
Blame your sales Rep’s Boeing... they are, I am so sure are used to just being able to sign an T&M contract, and promise the world, like most sales folks.
Change orders are changes to the original request... cost overruns are not change orders.
And they will have the great Trumpian paint job that will forever make them reminiscent of Trump Force One.
Understood. But a change order requires an amendment to the original contract — which means it is also an opportunity for the contractor to recover some of its earlier losses.
Trump was always claiming he was a great negotiator.
I guess he was.
Hey, you signed the contract.
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