Boeing said Wednesday the company would take a new $766 million charge on its 2018 billion contract to build two new U.S. presidential airplanes that faced repeated setbacks.
The Boeing 747-8s are designed to be anable to fly in worst-case security scenarios, such as nuclear war, and are modified with military avionics, advanced communications and a self-defense system and are now expected to be delivered in 2026 and 2027.
Boeing said the Air Force One losses were "driven by higher costs to incorporate certain technical requirements, increases to factory modification labor and support engineering, schedule delays and higher supplier costs."In June, the U.S. Government Accountability Office said the Air Force One program risked further delay citing a tight labor market for mechanics and lower-than-expected security clearance rates.
The report also cited Boeing's need to switch to an alternative supplier for some interior work as a major schedule risk. Boeing Chief Financial Officer Brian West said labor stability issues for Air Force One "are magnified because of the requirements to get security clearances." In June, the Pentagon scrapped a paint scheme for Air Force One proposed by Trump, after the military determined the design would create too much heat for the presidential aircraft.
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