Boeing CEO laments deal with Trump for Air Force One planes
Boeing’s CEO is lamenting the deal that his company cut with former President Donald Trump to produce new Air Force One jets.
David Calhoun said “it was a public negotiation” and “we took some risks” in accepting a fixed-price contract that made Boeing responsible if it cost more than expected to convert two Boeing 747 jumbo jets into presidential planes.
“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 should not have taken,” Calhoun said on Wednesday, “but we are where we are, and we’re going to deliver great airplanes.”
Calhoun commented on the planes when an analyst asked him about the matter during a call to discuss Boeing’s first-quarter earnings results. The company lost $US1.2 billion ($1.7 billion) and took a $US660 million write-down for Air Force One.
Calhoun was on the board, but he was not CEO when Boeing agreed to the $US3.9 billion deal with the White House in 2018, and when it took a fixed-cost contract to build a new military training jet, which Boeing just wrote down by $US367 million.
‘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 should not have taken.’
Boeing CEO David Calhoun
“Yes, they were written off the day we took them, knowing that we would be investing a fair amount of our own money” in the planes, Calhoun said.
Back in 2018, Boeing tweeted that it was “proud to build the next generation of Air Force One, providing American presidents with a flying White House at outstanding value to taxpayers.” The Trump White House said the deal would save taxpayers more than $US1.4 billion.