• Light/Dark
  • Ever wanted an RSS feed of all your favorite gaming news sites? Go check out our new Gaming Headlines feed! Read more about it here.
  • We have made minor adjustments to how the search bar works on ResetEra. You can read about the changes here.

Boeing lost $1.1 billion on Trump Air Force One contract; CEO regrets deal

Meauxse

Meauxse

Member
Oct 25, 2017
4,242
New Orleans, LA
Bad deal Boeing. DOD will pay for cost overruns for expansion of scope, raw material cost changes, and inflationary impacts.

Absolutely insane that cost overruns are 1.1 Bil. Insane. It isn't R&D because engineering is cheap. It's either re-work or something.

4 billion for modification of existing equipment is insane. That's like 5 LPDs, including engineering.
 
Chikor

Chikor

Banned
Oct 26, 2017
14,239
jackie daytona said:
I don't get why so much of the focus is on Trump in this. Presumably the USAF set the design requirements, and Boeing agreed to the contract. I'll admit there's a good chance Trump requested the upgrade thinking he'd get to use it himself (without knowing more of the history), but this thread is so weird acting like Trump pulled a master scam on Boeing.
Click to expand...
Click to shrink...
100% agreed.
Their CEO is making excuses and CNBC is helping Boeing frame the story that way because they are garbage, but this is not about Trump. Boeing fucked up and for once it's not taxpayers who have to foot the bill.
 
platocplx

platocplx

2020 Member Elect
Member
Oct 30, 2017
36,072
Lol boeing. they thought they had a deal doing a fixed price contract. There is a lot of shit that has to go right for them to work. Not even shocked they are now eating a shit load of cost now and the project is already 1.1 billion over. We're they that desperate for a win back then? I have no idea why they would do a fixed price on this at all.
 
riotous

riotous

Member
Oct 25, 2017
11,333
Seattle
Meauxse said:
It isn't R&D because engineering is cheap. It's either re-work or something.
Click to expand...
Click to shrink...

It takes a ton of people not just engineers to "build" anything airplane related, even for efficient companies.

And Boeing is insanely inefficient.

But yes, some of their inefficiency comes from lots of re-work being a part of everything they do and not just from an engineering standpoint. Their processes/software/everything internally is just a crapshoot.
 
LegendofJoe

LegendofJoe

Member
Oct 28, 2017
12,084
Arkansas, USA
Boeing might as well be a government department with how much taxpayer money they receive. But since they're part of the parasite club they get to privatize their profits and socialize their losses.
 
GungHo

GungHo

Member
Nov 27, 2017
6,135
Sho_Nuff82 said:
Imagine losing money on a government contract and explaining that to your shareholders.

"So let me get this straight, they gave you $4 billion dollars, and you want us to eat $1 billion every year to complete this project that the current guy in office never asked for?"
Click to expand...
Click to shrink...
Imagine killing 346 people, alienating every pilot on the planet because you decided it would cost money to train them to use your new aircraft and instead decided to embrace racism to explain two literally unavoidable crashes, paying $20B in fines and eating $60B in returned and cancelled airplanes, and explaining that to your shareholders.
 
Netherscourge

Netherscourge

Member
Oct 25, 2017
18,924
I'm actually fine with the way the deal turned out.

Trump lost the election and that screwed Boeing for making a dumb deal with him.
 
impingu1984

impingu1984

Member
Oct 31, 2017
3,416
UK
AAION

AAION

Member
Dec 28, 2018
1,605
iirc NASA doesn't do this with a lot of their contract work, which is why a lot of stuff goes over budget.
 
808s & Villainy

808s & Villainy

Banned
Oct 27, 2017
42,700
Bangdorf said:
Why doing that dance if you could just admit you haven't read the article.
Click to expand...
Click to shrink...
I'm convinced you're just trolling me at this point, because I honestly have no idea what you're talking about and I'm tired of trying to even understand.

I'm saying I don't understand why Boeing would make a deal on Air Force One modifications, that seemingly only Trump would care about, with what sounds like a bad deal, when he likely wouldn't be in office when it was done. If he was still in office maybe they couldn't done something to recoup their losses, but it seems like they're just going to eat them
 
Last edited:
Megasoum

Megasoum

Member
Oct 25, 2017
22,567
jelly said:
Why don't they modify newer planes, what's the 747 replacement, 777 or something?
Click to expand...
Click to shrink...

neoak said:
Boeing? Nothing. 777 is a twin jet. Only the Airbus A380 is a replacement, and that's also EOL'ed.

No one wants wide body jets with 4 engines anymore.
Click to expand...
Click to shrink...
Yeah and the Air Force is not allowed to buy a non-American made airplane anyway (and just imagine the PR disaster).

On top of that, about the age of the airplane... The 747-8 has been in production since only 2008 while their most recent model, the 787, has been in production since 2009 so it's not like the 747-8 is that much older.
 
Nobleman Swerve

Nobleman Swerve

Member
Oct 27, 2017
1,608
Modern Boeing's engineering and managerial incompetence strikes yet again, but now it's out of their own pocket book and not the taxpayer. Fine by me.

Though this is nowhere near as hilarious as their abject failure to deliver on KC-46 ariel tanker. It's fixed-price much like with Air Force 1, but the overruns are so extreme at this point that it's costed Boeing more than the contract itself was worth.
 
JCizzle

JCizzle

Avenger
Oct 26, 2017
7,302
AAION said:
iirc NASA doesn't do this with a lot of their contract work, which is why a lot of stuff goes over budget.
Click to expand...
Click to shrink...
Right. Doing it fixed price is smart from a taxpayer perspective. This cost overrun is usually eaten by the government with no fanfare, so if anything this is good contracting work. I'm assuming Trump actually had very little to do with it, if anything, and it was awarded by professionals. I'll admit I have no interest in the article to confirm or deny those suspicious lol
 
EternalDarko

EternalDarko

Member
Oct 26, 2017
1,586
The timelines for these planes don't even make any sense from trump's perspective...

If they're delivered in 2024, it would be the end of his second term, should he have won (or successfully overturned the vote).

I guess the next step in his cunning plan would have been to go full dictator and keep hold of the throne so he could finally fly these monstrosities.
 
Lexad

Lexad

Member
Nov 4, 2017
3,046
Jesse_and_the_rippers said:
This story is wild...




That's a lot of R&D for two planes. Did Trump ask for the planes to be made of solid gold? Will they have their own McDonald's franchises on board? Maybe they wanted something high-tech like a nuclear powered cloaking device?

Source: https://www.cnbc.com/2022/04/27/boeing-lost-billion-dollars-on-trump-air-force-one-plane-deal.html
Click to expand...
Click to shrink...
Having briefly worked on the project, it is not remotely as simple as that. I will leave it at that but this snarky bullshit
EternalDarko said:
The timelines for these planes don't even make any sense from trump's perspective...

If they're delivered in 2024, it would be the end of his second term, should he have won (or successfully overturned the vote).

I guess the next step in his cunning plan would have been to go full dictator and keep hold of the throne so he could finally fly these monstrosities.
Click to expand...
Click to shrink...
You do realize the planes as is were built before Wi-Fi was a thing and are nearing operational life expectancy. They had to begin negotiating back then. So much of the current Air Force One tech wise didn't exist back then and has been jerry rigged in.
 
MobileSuitReactor

MobileSuitReactor

Member
Sep 15, 2020
1,337
Problems at Boeing started LONG before Trump. They're more foolish than Trump out of the fact that they signed a deal with Trump. Trump won on this one.

100+ years company that makes airplanes losing money

TV man becomes president, keeps making money.
 
dhlt25

dhlt25

Member
Oct 27, 2017
1,817
how do you get 4 bil and can't update 2 planes lol, boeing is just incompetent reincarnate at this point. Can't get anything right, all of their defense and NASA projects under-delivered also
 
sfedai0

sfedai0

Member
Oct 27, 2017
9,951
After watching that Boeing expose on Netflix of the management covering up and looking the other way on the deficiencies of the MAX plane, fuck Boeing.
 

Panic Freak

Member
Oct 26, 2017
4,583
Emwitus said:
He's upset that us taxpayers dont have to pay for this trepidation. F that.
Click to expand...
Click to shrink...
Well we'll actually pay for it on the back end in the form of lower tax revenue. They'll write off the losses on the planes against other income.

And they may end up laying people off so there would be additional tax revenues lost there as well. Maybe cut back from planned investment.
 
You must log in or register to reply here.