Posted on May 1, 2022
Boeing CEO regrets Air Force One deal amid big quarterly losses
502
41
5
14
14
0
AIR FORCE READ OF THE DAY
Boeing CEO regrets Air Force One deal amid big quarterly losses
By Stephen Losey
Wednesday, Apr 27
A VC-25A Air Force One aircraft sits on a ramp at Offutt Air Force Base, Nebraska during a brief stop Jan. 22. The aircraft is one of two modified Boeing 747 Airliners that serve as a transport aircraft for the President of the United States. (Josh Plueger/Air Force)
WASHINGTON — Boeing reported $1.3 billion in cost overrun charges among some of its major defense programs in its most recent quarter, lowering its defense unit’s sales in what its chief executive called a “messier quarter.”
Much of those charges — a little more than $1 billion — came from development of the new Air Force One and the Air Force’s T-7A Red Hawk trainer, the company said in its quarterly earnings statement Wednesday.
PO1 William "Chip" Nagel Lt Col Charlie Brown SSG Michael Noll Lt Col John (Jack) Christensen Cpl Vic Burk MAJ Dale E. Wilson, Ph.D. SGT (Join to see) PO2 Marco Monsalve SGT David A. 'Cowboy' Groth ] SSG William Jones Sgt (Join to see) 1SG Dan Capri SGT Steve McFarland SrA John Monette SFC (Join to see) GySgt Jack Wallace SPC Michael Terrell SMSgt Anil Heendeniya CPL Douglas Chrysler CPL Pat Rasmusson
Boeing CEO regrets Air Force One deal amid big quarterly losses
By Stephen Losey
Wednesday, Apr 27
A VC-25A Air Force One aircraft sits on a ramp at Offutt Air Force Base, Nebraska during a brief stop Jan. 22. The aircraft is one of two modified Boeing 747 Airliners that serve as a transport aircraft for the President of the United States. (Josh Plueger/Air Force)
WASHINGTON — Boeing reported $1.3 billion in cost overrun charges among some of its major defense programs in its most recent quarter, lowering its defense unit’s sales in what its chief executive called a “messier quarter.”
Much of those charges — a little more than $1 billion — came from development of the new Air Force One and the Air Force’s T-7A Red Hawk trainer, the company said in its quarterly earnings statement Wednesday.
PO1 William "Chip" Nagel Lt Col Charlie Brown SSG Michael Noll Lt Col John (Jack) Christensen Cpl Vic Burk MAJ Dale E. Wilson, Ph.D. SGT (Join to see) PO2 Marco Monsalve SGT David A. 'Cowboy' Groth ] SSG William Jones Sgt (Join to see) 1SG Dan Capri SGT Steve McFarland SrA John Monette SFC (Join to see) GySgt Jack Wallace SPC Michael Terrell SMSgt Anil Heendeniya CPL Douglas Chrysler CPL Pat Rasmusson
Boeing CEO regrets Air Force One deal amid big quarterly losses
Posted from airforcetimes.comPosted in these groups: 
Boeing
Boeing
Posted 2 y ago
Responses: 5
10
10
0
8
8
0
SFC Joe S. Davis Jr., MSM, DSL
..."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. In July 2018, the Air Force awarded Boeing a $3.9 billion contract for two new Air Force Ones. 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.
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. “But we are where we are, and we’re going to deliver great airplanes.”
Calhoun said COVID-related inefficiencies were largely responsible for the cost overruns it experienced, and that they have been particularly acute for the Air Force One program.
“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. “It has always been a tougher implication, and for the VC-25B where the clearances are ultra high, it’s really tough. So we just got whacked in a number of different areas.”
..."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. In July 2018, the Air Force awarded Boeing a $3.9 billion contract for two new Air Force Ones. 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.
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. “But we are where we are, and we’re going to deliver great airplanes.”
Calhoun said COVID-related inefficiencies were largely responsible for the cost overruns it experienced, and that they have been particularly acute for the Air Force One program.
“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. “It has always been a tougher implication, and for the VC-25B where the clearances are ultra high, it’s really tough. So we just got whacked in a number of different areas.”
(8)
(0)
6
6
0
I have no sympathy for Boeing...having many years of acquisition experience they always bid low to get contracts then cry hard when they have cost overruns and want a govt bailout...sorry...own your own mistakes and move on.
(6)
(0)
Read This Next
Continue with Facebook 
Continue with Google