It's typically not a surprise when large projects come in behind schedule and over budget.
However, the 'new' modified Boeing 747-8i Air Force One aircraft (designated VC-25Bs) takes this trend to another level.
Responsible for seeing the project to completion for the United States Air Force (USAF), Boeing recently reported further losses on this fixed-cost contract.
As highlighted by CNN on October 25th, Boeing posted further losses on the work to provide the US President's future flagship aircraft.
The company reported further expenditures totaling $482 million on the contract.
In fact, the deal to modify two jumbo jets (initially built for commercial airlines) has now lost Boeing a total of $2 billion - $1 billion for each aircraft.
Boeing's chief says it's due to engineering changes, labor instability, as well as a resolution of negotiations with a supplier.
You may recall that in 2018, Boeing agreed to provide the Air Force One jets at a cost of $3.9 billion.
Facing pressure from then President Trump, Boeing agreed to lower its price for the contract.
A White House spokesperson stated at the time: "President Trump has reached an informal deal with Boeing on a fixed price contract for the new Air Force One Program... Thanks to the President's negotiations, the contract will save the taxpayers more than $1.4 billion." In 2022, Boeing's CEO expressed regret that his company had agreed to a fixed-price contract.
