A model of the next generation of Air Force One is on display next to President Donald Trump in the Oval Office of the White House, June 20, 2019. (Photo by Alex Wong/Getty Images)
WASHINGTON — Boeing has incurred a $280 million charge on the troubled VC-25B program, the company announced today during its second quarter results, pushing total losses the global aerospace manufacturer has suffered on the planned Air Force One replacement north of $3 billion for the first time.
Boeing attributed the charge to “an investment in additional production and certification resources,” which CEO Kelly Ortberg said would help mitigate potential risks as the aircraft moves into flight testing.
“While the charge is disappointing, we recognize how critical schedule performance is to our customer and we are investing accordingly to maintain our commitment to deliver the airplane in 2028,” Ortberg said. “This shouldn’t overshadow all the meaningful progress we’re making to reduce the risk across our defense portfolio, and we are in much better shape than we were two years ago.”
Boeing is financially responsible for covering all cost overruns on the program as part of the firm, fixed price deal agreed to by President Donald Trump in 2018, which set a $3.9 billion ceiling for the effort. However, the program has been mired in technical and workforce challenges that have set the program back from its original 2024 delivery date.
