Berliner Boersenzeitung - Progress, further delay risk for Boeing Air Force One: report

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Progress, further delay risk for Boeing Air Force One: report
Progress, further delay risk for Boeing Air Force One: report / Photo: SAUL LOEB - AFP

Progress, further delay risk for Boeing Air Force One: report

Boeing has made progress on its much-delayed new planes for the US president -- dubbed Air Force One when the leader is on board -- but the project remains vulnerable to potential further postponement, a government report said Thursday.

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The order for two new specially equipped Boeing 747-8 aircraft, known as the VC-25B, are currently scheduled for delivery in mid-2028 and mid-2029. The planes were originally targeted for delivery by the end of 2024.

"Boeing made progress on some of the schedule risks that we previously reported" including the completion of the engineering design for the environmental control system and hiring and Boeing's hiring of "more qualified mechanics," according to an annual weapons report from the US Government Accountability Office.

"Other schedule risks remain, including the detailed designs for the aircraft interiors, fabrication of the wire bundles, and rework to correct defects in structural modifications," the report said.

Signed in 2018 during President Donald Trump's first term, the contract aimed for initial delivery of a plane by the end of 2024.

The famed aircraft has been back in the news this week when Trump, now back in office, took his first flight aboard a new Air Force One plane -- a Boeing 747-800 gifted to him by Qatar last year and rapidly retrofitted.

Trump used the plane to fly to North Dakota to attend an event at the Theodore Roosevelt Presidential Library as part of celebrations for the 250th anniversary of American independence.

- 'Exceptional' planes -

Critics have raised a host of ethical, constitutional and security concerns about the gifting of an aircraft worth hundreds of millions of dollars by a foreign power like Qatar.

The Qatar plane is expected to serve as a stopgap until the Boeing planes are delivered.

Boeing deferred questions about the timeframe to the Air Force but said it is an "honor to be entrusted" with the contract.

"We continue to make steady progress on the VC-25B program," a Boeing spokesperson said. "Our focus is on delivering two exceptional Air Force One airplanes for the country."

In its most recent quarterly securities filing, Boeing described the work as a $4 billion fixed price contract "to develop and modify two 747-8 commercial aircraft." The company in 2025 increased its projected loss from the contract by $60 million.

"We expect finalization of the contract terms to reset the schedule and adjust the requirements in 2026," Boeing said in the filing. "Risk remains that we may record additional losses in future periods."

In its analysis, GAO said that the program could benefit from "leading product development practices" such as conducting digital engineering and developing a digital twin. The report also called for formal documentation in some areas.

"Even though the VC-25B is well into development, the adoption of modern tools and methods could help ensure the system works as intended throughout operations and increase future agility so that the system remains relevant and effective," the report said.

(U.Gruber--BBZ)