Boeing said Wednesday it recorded a $660 million charge in its development of Air Force One as its chief executive questioned the planemaker's U.S. presidential aircraft deal, reports Reuters.
In December 2016, then U.S. President-elect 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 Boeing's new Air Force One saying it was "ridiculous" and too expensive.
Boeing on Wednesday recorded a $660-million 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 $318-million charge in April 2021 on the program "largely due to COVID-19 impacts and performance issues at a key supplier."
The Boeing 747-8s are designed to be an airborne White House able to fly in worst-case security scenarios, such as nuclear war, and are modified with military avionics, advanced communications and a self-defence system.
Boeing received a $3.9 billion contract in 2018 for two 747-8 aircraft to be delivered around 2024. The Pentagon said this month the planes are not likely to be delivered until 2026.
Reporting by David Shepardson and Eric M. Johnson
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