According to reporting, the CEO of Boeing is feeling quite a bit of regret these days, over an Air Force One deal the company made with now ex-President Donald Trump that has cost them a whopping $1.1 billion in costs, and counting, in connection to a contract they joined to modify two 747 jumbo jets to serve as Air Force One during his term.
NBC Chicago reports on a recent disclosure from the aircraft company, admitting that they’ve lost a staggering $1.1 billion in connection to the deal they made with Donald Trump to provide modifications to the two jumbo jets that would serve as Air Force One during Donald’s administration, and CEO Dave Calhoun even went so far as to personally admit that the company “probably” should have never struck the deal with the washed-up real estate mogul, to begin with.
Regulatory filings saw Boeing warning that more losses for the company were likely soon to come in connection to the Trump Air Force One contract.
During a call with analysts for the company, Calhoun said, “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 shouldn’t have taken.”
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“But we are where we are, and we’re going to deliver great airplanes,” the CEO stated, just on the heels of revealing that the aircraft company saw a net loss of $1.2 billion for the first quarter of 2022. At least $660 million of that was in direct correlation to charges, delays, and high costs for the Air Force One program. “And we’re going to recognize the costs associated with it.”
In a securities filing, the company says, “Risk remains that we may be required to record additional losses in future periods.”
The deal between the aircraft company and Donald Trump was struck in February of 2018, between the then-president and then-CEO Dennis Muilenburg.
The deal specifically notes that Boeing, not the federal government, is required to eat any overruns in the cost of modifying the two jumbo jets.
Trump bragged at the time, “Boeing gave us a good deal. And we were able to take that.”
The aircraft company also spoke highly of the deal at the time, tweeting in February 2018, “Boeing is proud to build the next generation of Air Force One, providing American Presidents with a flying White House at outstanding value to taxpayers. President Trump negotiated a good deal on behalf of the American people.”
Former CEO Muilenburg was fired from the company in December of 2019, over the way he handled two crashes of the company’s 737 Max jets that killed 346 people.
Read the full report from NBC Chicago here.
Featured image via Official White House Photos by D. Myles Cullen
