In this article, Boeing CEO Kelly Ortberg mentioned that Boeing is collaborating with Trump advisor Elon Musk to expedite the delivery of the delayed and overbudget Air Force One replacements. The next Air Force One aircraft, two Boeing 747s, are more than $2 billion over budget and behind schedule due to design modifications, labor constraints, and supply chain issues. President Donald Trump secured a deal for the aircraft during his first term after expressing concerns about the high costs.
Ortberg stated in an interview with CNBC’s Phil Lebeau on “Squawk on the Street” that they are working with Elon Musk to reduce costs and accelerate the delivery of the Air Force One program. It remains uncertain whether the aircraft will be delivered before the end of Trump’s current term, with an updated delivery schedule expected from Boeing in the spring, according to an Air Force spokesperson.
Trump was seen cutting a cake featuring a model of Air Force One at his inaugural ball on Jan. 20. Musk, the CEO of SpaceX, a competitor of Boeing’s space unit, has been collaborating closely with Trump. Musk is also leading a commission appointed by Trump to decrease government expenditures. Neither Musk nor the White House provided immediate comments on the matter.
Ortberg mentioned that the President is eager for the planes to be delivered sooner, prompting the collaboration with Elon Musk to expedite the programs. Boeing incurred $1.7 billion in pretax charges in the last quarter in its defense and space unit, including for the Air Force One program. Ortberg, who took over as CEO in August, appointed an internal interim leader in September to head the defense and space unit.
