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Boeing's Air Force One, tanker programs dent defense unit
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Boeing suffered a $2.8 billion hit in its defense unit during the third quarter of 2022, attributed to certain fixed-price development programs, including its Air Force One program.
Boeing has already recorded a $660 million charge in the first quarter of 2022 related to the Air Force One program's "higher supplier costs, higher costs to finalize certain technical requirements and schedule delays." The first of the two aircraft is expected to be delivered in 2026.
THE BOEING CO.
In 2018, Boeing secured a $3.9 billion contract the U.S. to develop and modify two 747-8 commercial aircraft. The deal was made prior to current Boeing CEO Dave Calhoun's appointment in January 2020.
"Air Force One, I'm just going to call a very unique moment, a very unique negotiation, a very unique set of risks that Boeing probably shouldn't have taken," Calhoun said during the company's first-quarter earnings call in April. "But we are where we are, and we're going to deliver great airplanes. And we're going to recognize the costs associated with it."
Boeing CEO David Calhoun, April ’22 Remarks
Other fixed-price development programs that contributed to the segment's $2.8 billion loss during the third quarter were the KC-46A, MQ-25, T-7A and Commercial Crew programs.