Boeing CEO knocks planemakers deal with Trump on Air Force One

div classBodysc17zpet90 cdBBJodivpBy David Shepardson and Eric M. Johnsonp

pWASHINGTONSEATTLE Reuters – Boeing said Wednesday it recorded a 660 million charge in its development of Air Force One as its chief executive questioned the planemakers U.S. presidential aircraft deal.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pIn December 2016, then U.S. Presidentelect Donald Trump extracted a promise from then Boeing CEO Dennis Muilenburg that the cost of replacing Air Force One would not exceed 4 billion. Trump had earlier urged the government to cancel purchase of Boeings new Air Force One saying it was “ridiculous” and too expensive.p

pBoeing on Wednesday recorded a 660million charge on the Air Force One program, “primarily driven by higher supplier costs, higher costs to finalize technical requirements and schedule delays.” It recorded a 318million charge in April 2021 on the program “largely due to COVID19 impacts and performance issues at a key supplier.”p

p“Air Force One — I‘m just going to call a very unique moment, a very unique negotiation, a very unique set of risks that Boeing probably shouldn’t have taken,” Boeing Chief Executive Dave Calhoun told investors. “But we are where we are, and we‘re going to deliver great airplanes. And we’re going to recognize the costs associated with it.”p

pThe Boeing 7478s are designed to be an airborne White House able to fly in worstcase security scenarios, such as nuclear war, and are modified with military avionics, advanced communications and a selfdefense system. p

pBoeing received a 3.9 billion contract in 2018 for two 7478 aircraft to be delivered around 2024. The Pentagon said this month the planes are not likely to be delivered until 2026.p

pSeparately, Boeing is facing an increasingly highstakes battle to win certification of the largest variant of the 737 MAX before a new safety standard on cockpit alerts takes effect at yearend and is hoping Congress will step in.p

pThe deadline for changes was introduced as part of broader regulatory reforms at the Federal Aviation Administration following fatal 737 MAX crashes in 2018 and 2019.p

p“The intent of that legislation was never to stop the derivative product line with respect to the MAX,” Calhoun said. “So I believe our chances are good with respect to getting legislative relief. It doesn‘t mean we’ll get them. And if we don‘t, it’s a problem.”p

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pp Reporting by David Shepardson and Eric M. Johnson Editing by Nick Zieminskip

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