Boeing Co. (NYSE:BA) has proposed delivering its long-delayed new Air Force One presidential aircraft in 2027, three years behind the original 2024 timeline negotiated during President Donald Trump‘s first administration, a U.S. Air Force official told lawmakers Wednesday.
What Happened: Darlene Costello, Acting Assistant Secretary of the Air Force, informed the House Armed Services Committee that Boeing is targeting a 2027 delivery date but wouldn’t guarantee it, Reuters reported.
“We are looking at the requirements that are being potentially traded off to get to that date,” Costello said.
The government has temporarily lifted some security requirements for the production facility, allowing Boeing to be more “efficient and productive” in assembling the aircraft.
Meanwhile, the government has contracted L3Harris Technologies Inc. (NYSE:LHX) to overhaul a Boeing 747 formerly used by the Qatari government as an interim Air Force One, expected to be available this fall.
Why It Matters: The significant delays and cost overruns in the Air Force One program add to Boeing’s mounting challenges as the company works to recover from production issues and supply chain disruptions.
In February, Trump expressed frustration with Boeing but ruled out European rival Airbus as an alternative. Boeing CEO Kelly Ortberg revealed that Elon Musk, who serves as an adviser to Trump, was “helping us a lot” in navigating delivery challenges.
Boeing faces additional pressure from escalating tariff tensions with China, where customers have indicated they will not take delivery of Boeing aircraft following China’s implementation of 125% retaliatory tariffs on U.S.-made goods.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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