Under contract to deliver two 747-8i jets to become the new Air Force One fleet, Boeing has pushed back delivery until at least 2029. The initial agreement was for the aircraft to be ready in 2024. Boeing has cited reasons for their delay including rising costs, labor problems, and changing technical requirements. President Trump has made it clear that he is not happy about the situation.
New Air Force One contract signed in 2017.
During his first term in office, President Trump focused on the initial plans for two new aircraft. The Air Force and Boeing signed a $4.9 billion contract on 4 August 2017 to purchase two commercial 747-B aircraft, designated the VC-25B. They chose two aircraft that were supposed to go to Transaero, a Russian carrier that went out of business in 2015.
Aircraft originally destined for Russian airline
Boeing Spokesperson Caroline Hutcheson said the Russian airline never received the aircraft. She added that they were in storage in California. As the jets were already built, the contract with Boeing included plans for major modifications.
“Modifications to the aircraft will include incorporating a mission communications system, electrical power upgrades, a medical facility, an executive interior, a self-defense system, and autonomous ground operations capabilities,” said the Air Force in its announcement.
Fix-price deal for new Air Force One leads to problems
The contract was a fixed-price deal, which was supposed to cover all engineering, manufacturing, and development costs. As costs rose and requirements changed, this has led to conflict between Boeing and the Air Force.
After Boeing began work on the aircraft, the Air Force came up with some new technical requirements, partly due to security concerns. As the price was supposed to fixed, the Air Force expected Boeing to absorb any higher costs. These quickly became significant.
Boeing far over budget
By 2022, Boeing reported it was $1.1 billion over budget for the two VC-25Bs. Then, by February 2025, it announced its costs were over $2.4 billion more than the contract. Problems arose based on wording that allowed Boeing to request more money “every time it can make a case that what the Air Force says it wants exceeds the stated technical requirements.”
Andrew Hunter, former Air Force assistant secretary for acquisition, technology, and logistics, said it was challenging for the Air Force and Boeing to agree on who should pay for changes. He seemed to hint that Boeing was nitpicking the language in the Air Force’s requests.
Boeing CEO Dave Calhoun also sounded frustrated about the fixed nature of the contract, calling it “a very unique set of risks that Boeing probably shouldn’t have taken.”
A variety of excuses for long delay for new Air Force One
Boeing mentioned facing higher expenses due to engineering changes, labor instability, and problems with suppliers. Their supply-chain issues are partly because some parts manufacturers for the 747 are no longer in business.
President Trump has been very involved with the project since his first term. He has made it clear he is frustrated by the delay.
President Trump unhappy with delays on delivery
“I’m not happy with the fact that it’s taken so long,” Trump told reporters aboard Air Force One on Feb. 19. “There’s no excuse for it.”
He recently toured a 12-year-old 747-8 aircraft owned by Qatar. He did so to learn about the configuration of the two new aircraft that will become the VC-25B fleet. The 747-B has more interior space than the current Air Force One and will accommodate more people.
President looking onto other options
President Trump’s frustration could be a bad sign for Boeing. In February, he said he was considering possibly buying used jets elsewhere and refurbishing them. Boeing gets 42% of its business from U.S. government contracts, and loss of any of this would seriously harm the corporation.
This situation could possibly result in Boeing losing future defense contracts, said Richard Aboulafia, a managing director at AeroDynamic Advisory, an aerospace consulting firm. This is a valid concern for Boeing as the President wants to reduce the defense budget. In February, he told the Pentagon to cut 8% from its budget each year for the next five years.
Boeing referred recent questions about the project to the U.S. Air Force, but the Service did not provide any new comments.
“Clearly, the president would like the airplane earlier, and so we’re working to see what could be done to accomplish that,” said Boeing CEO Kelly Ortberg.
Boeing consulting with Elon Musk to address production issues
The delays on the new aircraft have led the President to seek what some might consider an unorthodox source for help: Elon Musk. Boeing reported that it was meeting with Musk to seek ways to speed up the project. The corporation seems to be welcoming his help.
“The President wants those planes sooner so we’re working with Elon to see what can we do to pull up the schedule of those programs,” said Ortberg.
