Boeing’s Air Force One project has sunk deeper into financial trouble, with the company losing over $3.1 billion on the deal. The project, which aims to deliver two presidential planes, has been plagued by cost overruns and delays.
Background
In 2018, former Boeing CEO Dave Calhoun signed a government contract to deliver the planes for $3.9 billion. However, the contract has since been modified to include spare parts and other items, bringing the total cost to around $4.5 billion.
Boeing has cited various reasons for the cost overruns, including engineering design changes, schedule delays, and performance issues at a key supplier. The company is now working to deliver the planes by 2028, with CEO Kelly Ortberg announcing that significant resources are being added to the project.
The existing presidential planes, which have been in service since 1990, have become costly to fly and repair. The government deemed them in need of replacement in 2015.
Impact
The losses tied to the Air Force One program have coincided with separate financial trouble for Boeing. The company posted a $428 million loss in the second quarter, on top of a $7 million loss in the first quarter.
Original reporting: El Paso News (HLL/CB) — read the source article.
