Skip to comments.Boeing reveals its losses on contract for new Air Force One hit $1.9BILLION with deal Trump negotiated
Posted on 10/26/2022 5:11:53 PM PDT by algore
Boeing revealed on Wednesday that its losses on its contract to build two new planes to act as Air Force One have hit $1.9 billion.
Then-President Donald Trump negotiated a fixed price of $3.9 billion for the presidential planes, leaving Boeing to foot the bill for anything over that amount.
'We didn't get enough price,' Boeing Chief Executive Dave Calhoun told CNBC, adding the 'biggest mistake' on the Air Force One 'was the fixed price nature' of the contract.
He said the defense company would take a $766 million loss this year on the contract. Boeing previously booked about $1.1 billion in losses - bringing its total cost to $1.9 billion for constructing the planes.
The contract is also three years behind schedule.
The new Boeing 747-8s, which are being modified into flying White Houses, aren't expected to fly until 2026 and 2027.
There needs to be two planes as there is always a backup for any presidential travel. The distinct blue-and-white Air Force Plane carries the call sign 'Air Force One' when the president is on board.
Boeing said the losses on the contract were 'driven by higher costs to incorporate certain technical requirements, increases to factory modification labor and support engineering, schedule delays and higher supplier costs
(Excerpt) Read more at dailymail.co.uk ...
I guess Boeing should figure out how to build planes more cheaply. The scab Indian workforce is delivering expensive, crap products.
The Art of the Deal, baby.
In other words, bidenflation caused the overrun.
They didn’t realize they’d actually have to negotiate with Trump. They got schlonged.
Yeah, because everyone who picks up a loaf of bread that says $4.99 expects it will be $8.99 by the time they get to the cash register.
Good. Boeing has ripped off the government plenty to more than make up for this loss.
Maybe they need to revamp their project management team so they can bring a project in on time and under budget?
it’s normal for government. bid low and get what you want with cost overruns.
All Boeing needs to do is to give a call to Joe Biden, suggest they can build a new Marine helicopter for him, price it at 30 Billion. They'll get the funding, enough to cover the planes as well. Biden loves to throw our money away.
The current Air Force One 747s are getting old being delivered during the first Reagan term. Compared to other 747w of the same age, they have low hours but they are 40 years old. I suppose that when they are retired, they will be stripped of all classified equipment and then put on display at two Air Force Museums.
“...schedule delays ...”
What up wid dat?
I must say that $1.95 billion for an airplane is a bit much.
I worked for a company that was so scared of FFP it forbid them. Even though the team I worked on had a 20 year history of returning 10-20% profit on them. These were smaller contracts. They had gotten hammered on big ones. Bad idea when you swing for the fences, but we hit ground balls one after another.
Wah-Wah... Boeing should be able to do a fixed price project just like a bazillion businesses in America and across the world. We need more fixed price contracts in government contracting. It’s too bad if you don’t know your business well enough to accurately offer a fixed price. Not the taxpayers problem...
They hate the fact that someone wanted to get a good deal. Government contracts are nothing but wealth redistribution to the already wealthy and connected.
Boeing did a pretty good job of screwing about 350 people out of their lives so they can cry me a river.
Spot On! Boeing and other OEMs constantly low ball the bid, then make ALL their profit through change orders. They conveniently leave out requirements from their low bid.
KC46 went over budget right after Boeing won the bid. Seemed all kinds of improvements were needed.
Ha, ha. Trump still winning. You’re working for the government, consider that your fine for missing the deadline.
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