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Boeing disclosed Wednesday that it has lost a whopping $1.1 billion in costs related to its deal with the Trump administration to modify two 747 jumbo jets to serve as Air Force One — and CEO Dave Calhoun admitted the aviation giant "probably" should not have cut the deal in the first place.

https://www.nbcchicago.com/news/busines ... l/2818190/

I've never understood how and why cost overruns occur... especially extremely high overruns. When I was in the ambulance business, we would quote a job based on the number of hours we estimated the job would take. Let's say we base a bid on it taking 32 hours to build a truck, based on the options ordered. If it takes 24 hours to do the actual job, then we make a major profit. If it takes more than 32 hours, we lose money. Our overruns we typically two or three hours. But, most of the time, we were under budget.

How the f*ck do they overrun $1.1 billion on two airplanes?

Serves them right for going "But mommmmmmmm!" when Airbus won the tender.

For our obliteration project, the bonus for being on time is IIRC $1M, and $40K/hr penalty for every hour delay. These people are working so fast you couldn't believe.

When I worked for BNSF, they would lose trains. I think once you're big and dominant enough, inefficiencies are exacerbated by the feeling that you can afford them, or just make them up elsewhere.

But to do that with two planes...well that's special. Maybe it was gold plumbing costs???

Those are anything but run of the mill 747's on top of that, 747-8 production ends this year but the new Air Force One's will not be delivered till 2024. Line employees and engineers will need to be kept on the project till delivered. I'm sure that payroll is a drop in the bucket but figure that the area in which they are produced can't be repurposed for anything else. Most likely the majority of the costs come in re-engineering the aircrafts internal systems to meet security and other needs.

Sounds kind of high just the same but it's like Ernest P. Worllel says, "You know, you got your preferred interest rate. That's the interest rate you'd like to see, but you ain't never gonna see it, they'll bookkeep you right out of it!"

The airplanes are built, and last I heard sitting at Kelly field inside having their guts pulled out and put back.

I am honestly not worried about Boeing eating loss on this. They need to run their business better. There's a reason I walked away from Boeing stock years ago.

I stand corrected. I should have done further research.

The jets – which were selling for $390 million at the time of the deal, according to DefenseOne – were stored in California awaiting new owners. They were later flown to Lackland Air Force Base near San Antonio, Texas, according to The Drive.

https://www.businessinsider.com/what-we-know-about-the-air-force-one-replacement-project-2020-7#:~:text=Boeing%20won%27t%20be%20building%20the%20new%20Air%20Force,Force%20will%20technically%20be%20buying%20the%20aircraft%20secondhand.

GOOD!

Here's my take on this.

Finally, the Goverment made a great deal, because just like EVERY other military contract (and that's what this is) there are cost over-runs and that cost is borne by the government, therefore by you and your tax dollars.

Good for you who ever finally inked that deal (MSM blames Trump - who really cares) for making that deal and making Boeing buy the ride for the cost over-runs and bungled work. Oh, and the suspension of the project while the empty booze bottle incident was investigated . . . . .

Fuck off Boeing.

ANCFlyer wrote:Good for you who ever finally inked that deal (MSM blames Trump - who really cares) for making that deal and making Boeing buy the ride for the cost over-runs and bungled work. Oh, and the suspension of the project while the empty booze bottle incident was investigated . . . . .

Trump actually swung a pretty good deal on the whole thing, the media will not ever give him credit for that.