President Donald Trump hinted at the possibility of the government terminating its contract with Boeing for two new Air Force One jets due to chronic delays. The president expressed frustration at the slow progress of the project during a speech at the FII Priority Summit in Miami.
Delays in the production of the Air Force One jets were exacerbated by staffing limitations at the Texas facility where security features mandated by the Air Force were being installed on the 747 aircraft. Additionally, issues within Boeing's supply chain further contributed to the extended delivery timeline.
Boeing has already reported significant financial losses related to the Air Force One project, with $2.25 billion in losses identified in previous financial statements. Last month, the company incurred an additional $1.7 billion charge for military contracts, including the VC-25B program, without specifying the exact portion allocated to the Air Force One jets.
Entrepreneur Elon Musk visited Boeing in December to assess the ongoing delays. Boeing has acknowledged the need to expedite the delivery of the aircraft but has refrained from confirming a revised timeline, citing ongoing discussions with the Air Force.
Boeing CEO Kelly Ortberg disclosed that efforts were underway to accelerate the production schedule in collaboration with Musk and his team. While describing the discussions with Musk as positive, Ortberg cautioned investors in a recent call that there was no quick fix for the Air Force One program, officially designated as VC-25B.
Despite the pressure to hasten the delivery of the new Air Force One jets, Ortberg emphasized that achieving an expedited timeline posed significant challenges. The iconic Air Force One designation is reserved exclusively for flights carrying the President of the United States.
