Boeing Air Force One

Boeing's CEO on Wednesday called the unusual deal his predecessor negotiated with then-President Donald Trump for the next generation of Air Force One a ...

The former President, with his deal-making persona, took an unusually hands-on approach to the Air Force One deal. "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," CEO David Calhoun said.

David Calhoun was on the board but he was not CEO when Boeing agreed to the $3.9 billion deal with the White House in 2018.

Boeing sued a subcontractor that it blamed for delays last year. The company lost $1.2 billion and took a $660 million write-down for Air Force One. The work is taking place in San Antonio, Texas.

CEO Dave Calhoun said Boeing "probably shouldn't have taken" risks from the deal for the planes, which was negotiated with then-President Donald Trump in 2018.

"Air Force One is going to be incredible," Trump said at the time. "Boeing is proud to build the next generation of Air Force One, providing American Presidents with a flying White House at outstanding value to taxpayers," it tweeted in February 2018. Under that fixed-price contract, Boeing is being paid about $4 billion for the work. Boeing on Wednesday disclosed a net loss of $1.2 billion for the first quarter, with a charge of $660 million associated with delays and higher costs for the Air Force One program. - Boeing reported a net loss of $1.2 billion for the first quarter of 2022, with a charge of $660 million associated with delays and higher costs for the Air Force One program. "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," Calhoun said on a call with analysts.

The company was trying to figure out the incoming Commander-in-Chief, then-President-elect Donald Trump. His hardline on trade with China and a seeming (albeit ...

Within hours of Trump mentioning Air Force One and its price tag ( widely reported as inaccurate) on Twitter – threatening to cancel the program – then Boeing Chief Executive Dennis Muilenburg was on the phone with him. Capping the taxpayer costs at $3.9 billion, rather than design a newly-built 747-8 airframe from scratch, Boeing offered a pair of stored 747-8s that had been destined for defunct Russian airline Transaero. Access to China was at stake and America First was going to become policy.

Boeing expects to lose $1.1 billion making a pair of new Air Force One jets for the White House, CEO Dave Calhoun reportedly said Wednesday.

In 1962, the first custom-built presidential jet, a Boeing 707, was introduced. The aircraft currently designated to serve as Air Force One include two Boeing 747-200 planes capable of midair refueling and customized to resist electromagnetic attacks, according to the White House. The pair of modified 747-8s currently under development will offer a longer travel range and will emit 16 tons less carbon dioxide per trip than the current 747-200s, Boeing said. The Air Force One deal was personally negotiated with Trump by then Boeing CEO Dennis Muilenburg, who was removed from the company in 2019 after being accused of mismanaging the company’s response to two deadly 737 MAX plane crashes.

Chief Executive David Calhoun looks back on 'a very unique negotiation' with the administration of then–U.S. President Donald Trump.

Just when Boeing will be cleared to resume deliveries of 787s is up to the FAA, but Calhoun said “We will be back in the air sooner rather than later.” The “core” loss was $2.75 a share on revenue of $13.99 billion. Those deliveries have been halted for more than a year by production issues that Boeing previously said would add about $2 billion in costs, of which $312 million was recorded in the first quarter. Calhoun alluded to the episode on Wednesday, noting that it had been “a very unique moment, a very unique negotiation.” Airlines are expecting a boom summer, with travelers returning in huge numbers after two years of pandemic. The move was widely expected, as Boeing adapts to certification standards that have been tightened since regulators approved the Max, then were forced to ground the planes after two deadly crashes.

Boeing CEO Dave Calhoun, who was not CEO at the time of the 2018 deal, called Air Force One a "very unique moment."

Calhoun told investors during a first quarter performance review call the company "probably shouldn't have taken" the $3.9 billion fixed-price contract, but called the situation unique and said they'll still deliver great planes. After that, Boeing's then-chief executive Dennis Muilenburg met multiple times with Trump to discuss the Air Force One contract. And we're going to recognize the costs associated with it," Calhoun said.