Air Force One delays push Boeing's losses past $3B
What's the story
Boeing has announced a massive financial blow in the form of an additional $280 million loss related to its long-delayed Air Force One project. The company's CEO Kelly Ortberg confirmed during an earnings call that the total cost overruns for the project have now exceeded a staggering $3 billion. The loss is attributed to Boeing's decision to "add significant resources" to support the build and test schedule of two military versions of the Boeing 747.
Delivery timeline
Boeing is on the hook for cost overruns
Ortberg emphasized the importance of schedule performance to their customer, and said Boeing is investing accordingly.
The company remains committed to delivering the new Air Force One airplane by 2028.
Under a $3.9 billion contract signed in 2018, Boeing is responsible for all cost overruns on this project.
The Government Accountability Office recently reported that Boeing is "almost three years behind its current baseline schedule."
Jet status
The current fleet of Air Force One
Currently, the US has two old Boeing 747-200 jumbo jets serving as Air Force One. These planes have been in operation since the 1990s.
A luxurious $400 million jet donated by Qatar was also used as a temporary presidential plane but was taken out of service earlier this month for anti-missile defense upgrades.
The development of these advanced jets with state-of-the-art communications and defensive systems is both expensive and complicated.