Boeing’s Air Force One Program Over Budget and Delayed

Boeing’s Air Force One program is facing significant challenges, being over budget by more than $2 billion and delayed for years. The two Boeing 747s that are set to replace the aging Air Force One aircraft were originally ordered during President Donald Trump’s first term, but the project has faced design changes, labor constraints, and supply chain issues that have hindered progress.

In an effort to address the delays and rising costs, Boeing CEO Kelly Ortberg revealed that the company is collaborating with Elon Musk, an advisor to President Trump, to expedite the delivery of the aircraft. “We’ve been engaged with Elon on the Air Force One program to eliminate costs and deliver the aircraft earlier,” Ortberg said in an interview with CNBC’s Phil Lebeau on “Squawk on the Street”. The company is working to revise the schedule and eliminate unnecessary costs, aiming to deliver the aircraft sooner.

President Trump had initially threatened to cancel the Air Force One deal during his campaign in 2017, citing high costs before striking an agreement for the replacement aircraft. However, the delays and budget overruns have raised concerns about the timely delivery of the aircraft. An Air Force spokesperson informed CNBC that an updated delivery schedule from Boeing is expected in the spring of 2025. It remains unclear whether the aircraft will be delivered before Trump’s current term ends.

The involvement of Elon Musk is noteworthy, as he is heading a commission aimed at reducing government spending and has worked closely with Trump in recent months. Musk’s SpaceX competes with Boeing’s space division, but the collaboration aims to streamline the production of the new Air Force One aircraft and accelerate the delivery schedule.

Despite the ongoing challenges, Boeing has continued its work on the Air Force One program. In the most recent quarter, the company took a $1.7 billion pretax charge in its defense and space unit, which includes costs related to the Air Force One program. In addition, Ortberg, who became CEO in August, made leadership changes within the defense division by appointing an interim leader in September.

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Sources: AirGuide Business airguide.info, bing.com, cnbc.com