Air Force and Boeing’s signed $3.9 billion fixed-price contracts for Air Force One are at least two years late and over budget at $1.1 billion.

Reasons for the Delay

The US Air Force awarded the contract to The Boeing Company to design, modify, test, certify and deliver two mission-ready presidential aircraft. President Trump and Boeing Chairman, President, and CEO Dennis Muilenburg reached an agreement on the above-mentioned fixed price on February 20, 2018, and the two VC-25B, commonly known as Air Force One, were expected to be delivered by 2024.

Boeing VC-25A. Tomás Del Coro from Las Vegas, Nevada, USACC BY-SA 2.0, via Wikimedia Commons

These terms and agreements were thrown out the window when there were delivery delays. 

Boeing pointed out two reasons for the delay: The COVID-19 pandemic and the problem it had with its contractor that was supposed to complete the interior work on the two planes. Last year, reports said that Boeing canceled the contract and sued the Texas-based supplier over the delays that “have resulted in millions of dollars in damages to Boeing and threaten to jeopardize work that is of critical importance to the (US Air Force) and the president of the United States.”