The Air Force One program went $ 660 million over its expected budget in the past few months. In a financial filing, Boeing reports that it’s now lost $ 1.1 billion on the contract.
‘we’re going to deliver great airplanes,’ says Calhoun. The Air Force One says it’s a very unique moment.
In 2018, Boeing came to an agreement with then-President Trump to develop and build two new air force one airplanes for a fixed price of $ 3.9 billion. The contract is where the contractor is paid the same for a project no matter what costs – and potentially, losses – it incursurs.
The original Air Force One order was estimated to come in somewhere between $ 4 and $ 5 billion. Trump apparently wanted the plane done by 2021, instead of 2024. The new agreement also shifted the timeline to build the plane.
Boeing did n’t meet that timeline, which is n’t terribly surprising. Since that deal was made, the company has been rocked by the 737 Max scandal.
During Wednesday’s call, covid-19 had been especially rough for the company’s work on the new air force one.’in the defense world when a covid line goes down or a group of workers steps out, we do n’t have a whole bunch of cleared people to step into their shoes,’ he said.
He did n’t want to take on any additional fixed price contracts, and had a’very different philosophy’ about them compared to the company’s previous CEO.
Boeing had a’messy quarter’ because of the Air Force One project.’we took some risks not knowing that covid would arrive,’ said Calhoun.
Boeing now plans to deliver the first air force one in 2024, and the second plane the year after. The Boeing financial statement says it may continue to lose money on the project.
Boeing’s Tweet calls the project an’outstanding value to taxpayers’. The Tweet also says that’president Trump negotiated a good deal on behalf of the American people’.
Boeing is proud to build the next generation of Air Force one. President Trump negotiated a good deal on behalf of the American people.
The F-35 is famous for being obscenely over budget, with the final price tag expected to be around $ 1.6 trillion. So far, Lockheed says it’s made around 800 of those planes.