COVID has made the project more difficult and expensive.
“Air Force One I’m just gonna call a very unique moment, a very unique negotiation, a very unique set of risks that Boeing probably shouldn’t have taken, but we are where we are and we’re going to deliver great airplanes. And we’re gonna recognize the cost associated with it,” says Calhoun.In 2018, Boeing came to an agreement with then-president Trump to develop and build two new Air Force One airplanes for a fixed price of $3.9 billion.
, a firm-fixed-price contract is where the contractor is paid the same for a project no matter what costs — and potentially, losses — it incurs.cancel the government’s previous Air Force One order as a cost-cutting measure in 2016. The original project was estimated to come in somewhere between $4 and $5 billion. The new agreement also shifted the timeline to build the plane — Trump apparently wanted it done by 2021, instead of 2024,Boeing didn’t meet that timeline, which isn’t terribly surprising. Since that deal was made, the company has been rocked by theCalhoun said during Wednesday’s call that COVID-19 had been especially rough for the company’s work on the new Air Force One.
He also noted that he didn’t want to take on any additional fixed price contracts, and had a “very different philosophy” about them compared to the company’s previous CEO. Calhoun says that, with regard to government contracts, Boeing had a “messy quarter” largely because of the Air Force One project. “You’ll recall it was a public negotiation that happened quite some time ago. We took some risks not knowing that COVID would arrive, and not knowing that an inflationary environment would take hold like it has.”
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Boeing CEO Dave Calhoun says company probably shouldn't have made Trump-era Air Force One dealThe company has already lost $660 million developing the two 747 jets for the fleet following a 2018 deal Trump made with the company that makes Boeing foot the bill for all cost changes in the development process.
Baca lebih lajut »
Boeing CEO talks China crash, 737 Max jet after 1Q lossBoeing reported an overall net loss of $1.2 billion during the quarter, or $2.75 per share. Total revenue came in at $13.99 billion
Baca lebih lajut »
Boeing CEO Regrets Deal With Trump For New Air Force One Jets That Will Cost Company $1 BillionBoeing has lost $660 million developing two Air Force One 747 jets following a “very unique” 2018 deal with then President Donald Trump. The company says it expects to lose $1.1 billion on the planes.
Baca lebih lajut »
New Morgan CEO is ex-Lamborghini projects boss | AutocarManagement changes as Massimo Fumarola named Morgan CEO while Steve Morris becomes executive chairman
Baca lebih lajut »
CBS President and CEO George Cheeks honored at Rosie's Theater Kids galaCBS2's Dick Brennan has the story.
Baca lebih lajut »
Former Twitter CEO Jack Dorsey responds to Musk takeover: 'Elon is the singular solution I trust'Former Twitter CEO Jack Dorsey responded to Tesla CEO Elon Musk's acquisition of Twitter on Monday, suggesting that he supports the move.
Baca lebih lajut »