$3 Billion and Counting: Boeing's VC-25B Program Hits Another Snag

Boeing has taken another hit on its VC-25B program, adding $280 million to its cumulative losses. The total now stands at a staggering $3 billion. This news comes as Boeing reports a loss of $428 million in its half-year financial results.

The VC-25B is the replacement for the current Air Force One fleet. Originally, the USAF had awarded Boeing a risk-reduction contract for the Presidential Aircraft Replacement (PAR) program in January 2015. However, the project has been plagued by cost overruns and delays.

In 2017, then-president-elect Trump tweeted that the bill for the new Air Force One jets was 'out of control, more than $4 billion.' He subsequently renegotiated the deal with Boeing CEO Dennis Muilenburg, resulting in a fixed-price contract capped at about $3.9 billion. This was touted as a winning deal for taxpayers, saving them over $1.4 billion.

However, it appears that this deal has not been as beneficial as claimed. The Air Force is now paying for an interim solution through the VC-25 Bridge aircraft, and it remains unclear how much more Boeing will receive in other contracts.