Context:

Boeing is now planning to deliver new Air Force One jets by 2027, a timeline that aligns with former President Donald Trump's potential final year in office, though still years behind the original 2022 delivery date. The delay has been attributed to contract changes, costly refurbishments of previously built 747 jets, and disruptions caused by the COVID-19 pandemic. Trump has been vocal about his dissatisfaction with the delays, considering alternatives like buying a used jet for interim use. Boeing, facing significant financial losses and pressure to expedite delivery, has been working to meet Trump’s requirements with assistance from figures like Elon Musk. Despite the challenges, Boeing remains crucially dependent on US government contracts, which comprise 42% of its revenue, making it essential to satisfy both Trump and the Air Force.

Dive Deeper:

• Boeing has adjusted the delivery timeline of the new Air Force One jets to 2027, which is earlier than their most recent estimates but still significantly later than the original 2022 target. This change comes after the Air Force agreed to relax some contract requirements, such as top-clearance security for workers, which were contributing to delays.

• The financial impact on Boeing has been substantial, with the company reporting $2.5 billion in losses on the Air Force One project due to cost overruns. These issues have turned the $3.9 billion contract into a significant burden for Boeing, which is heavily reliant on US government contracts for a major portion of its revenue.

• The refurbishment of two 747 jets originally built for another customer, who went bankrupt, has been more complex and costly than anticipated. This process, coupled with the onset of the COVID-19 pandemic soon after work began, has led to substantial delays.

• President Trump, dissatisfied with the delays, has been exploring alternatives, including the purchase of a used 747 for interim use as Air Force One. His dissatisfaction has been public, with Trump expressing a need for faster delivery and considering other companies for refurbishment.

• Boeing CEO Kelly Ortberg has expressed commitment to expediting the delivery process, with notable input from Elon Musk to remove non-value-added constraints. This collaboration aims to streamline the project and meet the desired delivery timeline.

• The complexity of converting a standard Boeing 747 into a specialized Air Force One jet poses significant challenges. The aircraft must be equipped with advanced communications and protective systems to ensure it can function as a secure command post for the President of the United States.

• The government has reportedly commissioned L3Harris to overhaul a Boeing 747 previously used by the Qatari government to potentially serve as an Air Force One jet, although official confirmation of this contract has not been announced.