Well, folks, I almost spilled my coffee reading this one. Boeing’s Air Force One project is still sinking, and I mean, really sinking – we’re talking billions of dollars deeper than initially promised. The company said it’s making a substantial effort to get the first of two presidential planes out the door, but it’s now four years later and billions of dollars more than they initially thought. I guess that’s what happens when you’re building a plane for the President – everything has to be just right, and that comes at a cost.
The CEO, Kelly Ortberg, told employees via an internal email that they’re adding “significant resources” to deliver the heavily modified 747-8 jets by 2028. I’m not sure what that means, but I’m guessing it means they’re throwing a lot of money and manpower at the problem. And, boy, are they throwing money at it – an additional $280 million last quarter, to be exact. That’s a lot of cash, even for a company like Boeing.
The program’s cost overruns have now surpassed $3.1 billion, and Boeing has agreed to foot that bill. I’m not sure how they’re going to make that back, but I’m sure they’ll figure something out. Maybe they can just add it to the cost of the next plane they sell. President Donald Trump has taken a particular interest in the new Air Force One planes, and who can blame him? I mean, who wouldn’t want a fancy new plane to fly around in?
The contract for the new jets was signed in 2018, and it capped the cost to the American taxpayer at $3.9 billion. But, of course, that contract has since been modified, growing the price tag to around $4.5 billion. Because, why not, right? It’s not like it’s coming out of our pockets or anything. Over the past six years, the planes have proven significantly more expensive than Boeing had anticipated, and the company has cited various reasons for the massive cost overruns, including engineering design changes and schedule delays.
Apparently, the existing presidential planes have been in service since 1990, and they’ve become so costly to fly and repair that the government deemed in 2015 they were in need of replacement. But, you know, it’s not like they’re just going to magic up a new plane out of thin air. Trump became personally involved in the contract for the new jets before his first term, and he even threatened to cancel the order for the planes because of the high cost of designing them. I guess that’s one way to negotiate – just threaten to walk away and see what happens.
Former CEO Dave Calhoun called the planes and the negotiation with Trump “unique,” but he said the deal was risky and Boeing shouldn’t have signed it. Well, that’s easy to say now, but I’m sure it seemed like a good idea at the time. The massive losses tied to the Air Force One program have coincided with separate and significant financial trouble for the airplane manufacturer. Boeing posted a $428 million loss in the second quarter, on top of a $7 million loss in the first quarter. Yikes, that’s a lot of red ink.
In conclusion, the Air Force One project is a money pit, and Boeing is still trying to dig its way out. With cost overruns surpassing $3.1 billion and a predicted delivery date of 2028, it’s clear that this project has been a challenge. And, as I always say, you can’t make this stuff up – only in America can we spend billions of dollars on a plane and still manage to be late and over budget. I guess that’s just the way the cookie crumbles, folks.
Armchair patriot. Believes in the free market, cold beer, and that there’s always a guy named George behind every CNN segment.
Former remote-throwing champion turned #1 couch commentator on liberal panic in the media. Born in Texas (or so his mug says), he earned a degree in Fake Newsology & Beer Philosophy from YouTube University.
