The next generation of Air Force One aircraft, a pair of Boeing 747s, faces significant financial and scheduling challenges. These challenges include a budget overrun exceeding $2 billion and indefinite delivery delays. Boeing attributes these issues to a trifecta of design changes, labor constraints, and supply chain problems. The situation has resulted in the aerospace giant absorbing $1.7 billion in pretax charges within its defense and space unit, notably affecting the Air Force One program.
President Donald Trump initially negotiated the deal for these replacement aircraft during his first term. Before taking office in 2017, Trump voiced concerns over the program's high costs. In response to the current delays, Boeing has enlisted the help of Trump advisor Elon Musk to explore options for accelerating the delivery of the aircraft.
The Air Force One program is now under the leadership of CEO Kelly Ortberg, who assumed the role in August. Ortberg has since replaced the head of the defense and space unit with an interim internal leader, reflecting Boeing's commitment to addressing ongoing challenges within this sector. The company is expected to provide an updated delivery schedule in the spring, although it remains uncertain whether the aircraft will be completed before Trump's term concludes.
This project represents a significant endeavor for Boeing, aiming to furnish the US Air Force with two state-of-the-art aircraft. The new Air Force One aircraft will feature a distinctive paint scheme, first unveiled on a cake at Trump's inaugural ball. However, persistent delays and cost overruns have plagued the program, testing Boeing's ability to fulfill its contractual obligations.
Despite Musk's involvement, SpaceX—his company—competes directly with Boeing's space unit, which is integral to the Air Force One project. This rivalry adds another layer of complexity to the partnership aimed at overcoming operational hurdles.