Latest news with #VC-25B
Yahoo
25-06-2025
- Business
- Yahoo
Boeing hires former Northrop executive to lead Air Force One program, sources say
(Reuters) -Boeing has hired a former Northrop Grumman executive, Steve Sullivan, to lead its Air Force One program, according to two people briefed on the matter. Sullivan, who previously worked on key Northrop programs including the B-21 bomber, replaces Gregg Coffey, who is moving to another role at the U.S. planemaker. Boeing did not immediately respond to a Reuters request for a comment. The Air Force One program, which involves converting two 747-8 aircraft into VC-25B jets equipped with advanced communications and defense systems to serve as the next generation of U.S. presidential air transport, has faced chronic delays over the last decade. Delivery of the two new 747-8s is three years behind schedule and now expected in 2027. The news of the appointment comes after the U.S. military in May accepted a 747 jetliner as a gift from Qatar. The Air Force was tasked with evaluating options to quickly upgrade it for presidential use.
Yahoo
13-06-2025
- Business
- Yahoo
Boeing's Air Force One Overhaul Delayed Again As Workforce Woes, Design Failures And Security Bottlenecks Mount, GAO Reports
The Boeing Co. (NYSE:BA) Air Force One replacement program remains years behind schedule and billions over budget as workforce challenges and design complications continue plaguing production, a new report states. What Happened: The Government Accountability Office shared on Wednesday that 'ongoing design issues, modification rework, and workforce challenges' are still delaying Boeing's VC-25B presidential aircraft program, Fortune reported . The Pentagon confirmed to congressional auditors that Boeing continues struggling to hire and retain qualified mechanics due to competitive market conditions and security clearance approval bottlenecks, according to the GAO report. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Boeing signed a $3.9 billion contract in 2018 to deliver two modified 747-8 aircraft by 2024, but persistent delays have pushed completion to December 2029 or potentially 'years beyond,' Boeing officials told Reuters in February. The program now faces projected costs of nearly $6.2 billion, representing at least $2 billion in cost overruns from the original contract. Progress has stalled due to decompression system issues, environmental control design problems, and incomplete certification plans. Trump has eliminated requirements for air-to-air refueling capabilities to expedite delivery. Boeing CEO Kelly Ortberg revealed at a Barclays conference that the company is working with Elon Musk to resolve production bottlenecks, with Musk visiting Boeing's San Antonio facility in December 2024. Why It Matters: The extended delays have forced Trump to secure alternative transportation through a controversial $400 million Boeing 747 from Qatar's royal family. Aviation experts warn the Qatari jet conversion could cost taxpayers up to $1 billion and take years to complete, potentially extending into the 2030s before meeting presidential security standards. Boeing's workforce challenges reflect broader industry labor shortages despite the company announcing plans to cut 10% of its workforce last fall. The VC-25B program requires mechanics with stringent security clearances, creating additional hiring constraints. Program officials noted that 'approval rates for mechanics to acquire necessary clearances remain a workforce limitation.' The Air Force One delays add to Boeing's operational challenges amid ongoing quality control issues across its commercial aircraft programs. The company faces FAA scrutiny over safety concerns while competing with Airbus SE (OTC:EADSF), which recently confirmed confidence in meeting its 2025 delivery targets of 820 aircraft despite supply chain Next: Are you rich? Here's what Americans think you need to be considered wealthy. If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it? UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Boeing's Air Force One Overhaul Delayed Again As Workforce Woes, Design Failures And Security Bottlenecks Mount, GAO Reports originally appeared on
Yahoo
13-06-2025
- Business
- Yahoo
Boeing's Air Force One production is facing continued delays because the manufacturer can't consistently hire and retain mechanics
Boeing's Air Force One project has fallen years behind schedule and billions of dollars over budget amid continued labor and design hiccups. The Government Accountability Office said in a report this week 'ongoing design issues, modification rework, and workforce challenges' are still plaguing the manufacturer. The Trump administration has resorted to procuring a $400 million jet from Qatar to serve as the interim Air Force One. Boeing is continuing to battle production issues plaguing the jets that will serve as Air Force One, according to the Government Accountability Office (GAO). The Pentagon told the congressional auditors that 'ongoing design issues, modification rework, and workforce challenges slowed the progress toward modifying two Boeing 747-8 aircraft into presidential aircraft,' a report released Wednesday said. The United States, under President Donald Trump, signed a $3.9 billion contract with Boeing in 2018 to have two planes designed, modified, and tested to serve as Air Force One by 2024, but persistent delays have pushed the project past its delivery date. In order for the aircraft to meet Air Force One specifications, Boeing needs to heavily modify the jets to meet travel and top-level security needs, which has slowed down the production process considerably. Trump has dropped a requirement for the VC-25B planes to have air-to-air flying capabilities, which would allow them to receive fuel from a tanker aircraft while in flight. Progress on the aircraft has stalled as a result of issues around decompression and the environmental control system design, and Boeing's incomplete certification plans and aircraft design have also pushed back the timetable for testing, the GAO said. The aircraft manufacturer has also been unable to keep a steady workforce for the project. 'Boeing still faces challenges hiring and retaining qualified mechanics due to ongoing market conditions, according to VC-25B officials,' the report said. 'Program officials said that approval rates for mechanics to acquire necessary clearances remain a workforce limitation.' Last fall, Boeing announced plans to lay off 10% of its workforce, despite industry-wide talent shortages. As Boeing tries to push through its scheduling woes, Trump has instead procured a $400 million Boeing 474 from Qatar after threatening in February to find alternatives to the VC-25B project. The gifted Qatari jet has not only raised ethical and security concerns, but it will likely cost taxpayers $1 billion in servicing and updating the jet to Air Force One standards. The 10-digit chunk of change is on top of the projected development and procurement cost of the two Boeing aircraft, according to GAO, which is nearly $6.2 billion—at least $2 billion more expensive than the cost originally outlined in the contract. Boeing and the Pentagon did not respond to Fortune's requests for comment. Though Trump commissioned Boeing for the new jets during his first term, there's a good chance the president will likely not fly on the new Air Force One during his administration. In February 2024, Boeing revised its delivery schedule from May 2027 to December 2029, but a Boeing senior official told Reuters in February the program could stretch 'years beyond' 2029. The issues plaguing Boeing's production now look similar to the delaying variables from years past. In a June 2022 GAO report, the auditors said Boeing's aircraft mechanic workforce was limited because of a competitive labor market and that many of the skilled workers needed on the project were unable to get security-clearance approval. 'Employees must meet stringent security requirements to work on the VC-25B program because of its presidential mission,' the report said. 'VC-25B officials said that Boeing continues to work with the program office to improve the prescreening process for applicants to ensure timely processing of security clearances.' Earlier in Trump's second term, Boeing sought help from Elon Musk, former leader of the Department of Government Efficiency (DOGE). Boeing CEO Kelly Ortberg said at a Barclays conference in February the advisory has helped remove some production bottlenecks. Musk visited Boeing's San Antonio, Texas, facility in December 2024. 'The president's clearly not happy with the delivery timing. I think he's made that well known,' Ortberg said. 'And Elon Musk is actually helping us a lot.' This story was originally featured on
Yahoo
13-06-2025
- Business
- Yahoo
Boeing's Air Force One production is facing continued delays because the manufacturer can't consistently hire and retain mechanics
Boeing's Air Force One project has fallen years behind schedule and billions of dollars over budget amid continued labor and design hiccups. The Government Accountability Office said in a report this week 'ongoing design issues, modification rework, and workforce challenges' are still plaguing the manufacturer. The Trump administration has resorted to procuring a $400 million jet from Qatar to serve as the interim Air Force One. Boeing is continuing to battle production issues plaguing the jets that will serve as Air Force One, according to the Government Accountability Office (GAO). The Pentagon told the congressional auditors that 'ongoing design issues, modification rework, and workforce challenges slowed the progress toward modifying two Boeing 747-8 aircraft into presidential aircraft,' a report released Wednesday said. The United States, under President Donald Trump, signed a $3.9 billion contract with Boeing in 2018 to have two planes designed, modified, and tested to serve as Air Force One by 2024, but persistent delays have pushed the project past its delivery date. In order for the aircraft to meet Air Force One specifications, Boeing needs to heavily modify the jets to meet travel and top-level security needs, which has slowed down the production process considerably. Trump has dropped a requirement for the VC-25B planes to have air-to-air flying capabilities, which would allow them to receive fuel from a tanker aircraft while in flight. Progress on the aircraft has stalled as a result of issues around decompression and the environmental control system design, and Boeing's incomplete certification plans and aircraft design have also pushed back the timetable for testing, the GAO said. The aircraft manufacturer has also been unable to keep a steady workforce for the project. 'Boeing still faces challenges hiring and retaining qualified mechanics due to ongoing market conditions, according to VC-25B officials,' the report said. 'Program officials said that approval rates for mechanics to acquire necessary clearances remain a workforce limitation.' Last fall, Boeing announced plans to lay off 10% of its workforce, despite industry-wide talent shortages. As Boeing tries to push through its scheduling woes, Trump has instead procured a $400 million Boeing 474 from Qatar after threatening in February to find alternatives to the VC-25B project. The gifted Qatari jet has not only raised ethical and security concerns, but it will likely cost taxpayers $1 billion in servicing and updating the jet to Air Force One standards. The 10-digit chunk of change is on top of the projected development and procurement cost of the two Boeing aircraft, according to GAO, which is nearly $6.2 billion—at least $2 billion more expensive than the cost originally outlined in the contract. Boeing and the Pentagon did not respond to Fortune's requests for comment. Though Trump commissioned Boeing for the new jets during his first term, there's a good chance the president will likely not fly on the new Air Force One during his administration. In February 2024, Boeing revised its delivery schedule from May 2027 to December 2029, but a Boeing senior official told Reuters in February the program could stretch 'years beyond' 2029. The issues plaguing Boeing's production now look similar to the delaying variables from years past. In a June 2022 GAO report, the auditors said Boeing's aircraft mechanic workforce was limited because of a competitive labor market and that many of the skilled workers needed on the project were unable to get security-clearance approval. 'Employees must meet stringent security requirements to work on the VC-25B program because of its presidential mission,' the report said. 'VC-25B officials said that Boeing continues to work with the program office to improve the prescreening process for applicants to ensure timely processing of security clearances.' Earlier in Trump's second term, Boeing sought help from Elon Musk, former leader of the Department of Government Efficiency (DOGE). Boeing CEO Kelly Ortberg said at a Barclays conference in February the advisory has helped remove some production bottlenecks. Musk visited Boeing's San Antonio, Texas, facility in December 2024. 'The president's clearly not happy with the delivery timing. I think he's made that well known,' Ortberg said. 'And Elon Musk is actually helping us a lot.' This story was originally featured on
Yahoo
05-06-2025
- Business
- Yahoo
Air Force pegs cost to modify Qatar-gifted plane at ‘less than $400M'
The Air Force estimates it will cost less than $400 million to modify a luxury aircraft gifted from the Qatari government into President Donald Trump's flying command center, according to the service's top civilian official. That projection is far less than the $1 billion congressional democrats and some aviation experts have said would be required to harden the plane's defenses and install the countermeasures, encrypted communications and other capabilities needed to fulfill the Air Force One mission. Air Force Secretary Troy Meink said Thursday in a House Armed Services Committee hearing that the assumptions some are making about the modification costs include things like training and buying spare parts — expenses the service has already accounted for through its broader VC-25B presidential aircraft program. While the Air Force may now need to procure those things earlier, it won't be paying for them twice. 'There's been a number thrown around on the order of a billion dollars,' Meink said, adding later, 'It's probably less than $400 million to retrofit that aircraft.' The White House announced last month it would accept Qatar's offer to gift the president a modified Boeing 747-8, worth roughly $400 million. The plan is to use the gifted plane throughout the rest of Trump's term and then donate it to the Trump Presidential Library Foundation after Trump leaves office. The Air Force, which will oversee the upgrades, hasn't provided details on the scope or schedule of the modifications or confirmed who will perform the work. The Wall Street Journal reported in May that L3Harris has been tapped to convert the aircraft at a facility in Texas and expects to complete the upgrades later this year. The Air Force is already in the midst of a major modernization program, started in 2015, to convert two 747-8 aircraft through the VC-25B presidential aircraft program. Boeing is under a $3.9 billion fixed-price contract to conduct the modifications. Deliveries were previously slated for last year, but have since been pushed to 2029 — a delay that has frustrated Trump. The president on his social media platform Truth Social last month described Qatar's offer of a 747-8 to fill that gap as 'a GIFT, FREE OF CHARGE' to the Defense Department. Democrats have taken issue with the deal on multiple levels, criticizing the president's acceptance of a $400 million aircraft from a foreign government as a conflict of interest and claiming the cost to turn it into an airborne situation room could balloon to billions of dollars. During Thursday's hearing, Rep. Joe Courtney, D-Conn., raised the issue of the modification costs, speculating they will fall closer to $1 billion or more. He also called for greater transparency from DOD on what that price tag will be. 'Based on the experience that we already have gone through with retrofitting planes, 747s, it's clear that this is going to be a drain on the Air Force's budget,' he said. 'I think that the sooner we just sort of rip the Band-Aid off and get that information out there, it would be helpful for us in terms of deciding whether this is a smart path to go down.'
