![]() ![]() GDC specializes in interiors of business jets and VIP aircraft in general. This supplier is likely GDC Technics, which Boeing sued (and who sued Boeing) about a year ago. This had to do in part with COVID-19 delays, but it also related to “ performance issues at a key supplier”. In any case, this new $660 million charge on the VC-25B program has to do with rising supplier costs, troublesome technical requirements and schedule delays, according to Dave Calhoun.īoeing recorded another $318 charge for the Air Force One program last year. He lost his position following Boeing’s 737 MAX crisis. The Boeing CEO making the “do-not-exceed-$4 billion” Air Force One agreement was Dennis Muilenburg. Now it needs more workers for the job Order Reprints Enlarge A photo of the current Air Force One, which the U.S. And we’re going to recognize the costs associated with it.” Manufacturing Boeing moved Air Force One overhauls from Wichita. But we are where we are, and we’re going to deliver great airplanes. “ 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. It now seems that Boeing’s CEO Dave Calhoun (who wasn’t CEO at the time) thinks this wasn’t a good idea. Boeing’s agreement at the time was that the contract would not exceed $4 billion. Marcus Weisgerber JIndustry Air Force Tim Keating, Boeing’s longtime top lobbyist. So we just got whacked in a number of different areas.In 2018, Boeing got a $3.9 billion contract for the two 747-8 aircraft that will become the next Air Force One. Business Boeing’s Top Lobbyist Leaves Company Tim Keating was close to CEO fired in 2019. ![]() “It has always been a tougher implication, and for the VC-25B, where the clearances are ultra high, it’s really tough. Johnson traveled on a Boeing 707 for most trips when he was president. “In the defense world, when a COVID line goes down, or a group of workers steps out, we don’t have a whole bunch of cleared people to step into their shoes,” Calhoun said. to as Air Force One-Half, although any plane that carries the president of. “But we are where we are, and we’re going to deliver great airplanes.”Ĭalhoun said pandemic-related inefficiencies were largely responsible for the cost overruns it experienced, and that they have been particularly acute for the Air Force One program. ![]() That contract represented “a very unique moment, a very unique negotiation, a very unique set of risks that Boeing probably shouldn’t have taken,” Calhoun said. The White House said that represented a dramatic price drop from the original proposal for the cost-plus contract, which it said was valued at $5.3 billion. In July 2018, the Air Force awarded Boeing a $3.9 billion contract for two new Air Force Ones. In December 2016, then-President-elect Donald Trump tweeted “costs are out of control” for the more than $4 billion price tag for the new Air Force One and that he wanted to cancel the order. Despite both programs having higher-than-anticipated development costs, Calhoun said, the military will be flying them both for a long time.īut he expressed regret over the path Boeing took on the new Air Force One during the Trump administration. He added that he expects the MQ-25 Stingray program, a Navy aerial refueling drone for which Boeing won the contract in 2018, will also turn out to be another good bet for the company. Supply chain constraints, complications from the COVID-19 pandemic and inflation complicated ongoing negotiations with suppliers, Boeing said.īoeing’s Securities and Exchange Commission filings also showed a $165 million charge for the KC-46A Pegasus tanker, driven mainly by higher supply chain costs, and a $78 million charge for the MQ-26 Stingray drone, stemming from additional testing requirements from the Navy as well as supplier quality problems.ĭuring the call, Calhoun said Boeing still has high confidence in the T-7′s future and that other programs have weathered similar pressures.
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