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.
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.
See Also: Lockheed Martin, RTX, General Dynamics And Other Defense Stocks Rise In Friday Pre-Market: What’s Going On?
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 constraints.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
