Boeing loses $1.1 billion from Trump’s Air Force One contract

Boeing CEO Dave Calhoun – Photo: REUTERS

According to Radio CNBCBoeing revealed it had spent a huge $1.1 billion on a deal with the Trump administration to repair two Boeing 747 planes as Air Force One.

Boeing warned there could be more losses from the Air Force One contract in the coming quarters.

Air Force One is the official name for any aircraft carrying the president of the United States.

In 2016, Trump asked then-Boeing CEO Dennis Muilenburg to promise that the cost of Air Force One would not exceed $4 billion.

Mr Trump had previously urged the government to cancel the purchase of a new Air Force One from Boeing, calling it “ridiculous” and too expensive.

Of the $1.1 billion loss related to Air Force One, Boeing recorded $660 million in delays and inflated costs.

In April 2021, Boeing recorded a fee of $318 million for the same program, with “most of it coming from the impact of COVID-19 and performance issues at a key supplier.”

Boeing CEO Dave Calhoun told investors he didn’t think Boeing should have taken the job developing Air Force One.

“But we’re still here, and we’re going to deliver great planes. We’re going to recoup the costs associated with this program,” Mr. Calhoun said.

Boeing 747-8s designed for the White House can fly in worst-case security scenarios, such as nuclear war. Boeing 747-8 modified with avionics, advanced communications and self-defense systems.

Boeing received a $3.9 billion contract in 2018 for two 747-8 planes to be delivered around 2024.

However, in April, the US Department of Defense announced that these planes are likely to be delivered around 2026.