May 23, 2022

Boeing CEO admits Air Force One deal with Trump shot a hole in company earnings

Former President Donald Trump literally wrote the book on how to close the best deal. Now it’s clear from the Boeing company’s regrets that Trump still has what it takes.

Boeing CEO Dave Calhoun admitted to investors that the 2018 agreement the company made with Trump to make the Air Force One planes was a losing proposition, the Washington Examiner reported. The company lost a reported $1.1 billion on the negotiation.

“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 on Wednesday’s earnings call.  “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 was nearing closure on a $4.2 billion government contract to make the pair of planes in 2018. When Trump heard about the hefty price tag, he decided he could do better and ended up signing a $3.9 billion deal instead.

“The price was too high and the plane was just about ordered and I heard about it and I said ‘cancel the order,'” the former president told National Geographic at the time. “I bought the two planes and actually got a little more plane for the dollar, not less plane, it’s not like gee whiz, we left things off, we got more plane for the money, so I was happy about that.”

Recently, Boeing reported a $1.2 billion loss in the first quarter of 2022, with the Air Force One agreement accounting for $660 million of it. Calhoun said the company went over budget on the pair of planes and was hamstrung by the contract that required Boeing to eat the additional costs.

For Trump’s part, he considers this deal a feather in his cap, often boasting that he saved taxpayers $1 billion. Even the airline manufacturer gave Trump kudos for brokering a “good deal on behalf of the American people” at the time.

Calhoun has confirmed that Trump was a master negotiator because his company walked away as the loser in this deal. Though it isn’t good for Boeing, it’s always a great thing when the American taxpayer comes out ahead.

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J.R. Justice (@guest_1286471)
24 days ago

This just goes to show you exactly what the government actually does FOR US, absolutely nothing at all !!! I could care less whether BOEING loses money or not, they have been screwing us over for decades and when, finally they are MADE to give US a GOOD DEAL,they whine and cry about losing money on the deal, TOO BAD, FULFILL YOUR OBLIGATIONS AND SHUT UP ABOUT IT !!! Maybe if ALL government contracts were negotiated like this one was, we wouldn’t be TRILLIONS OF DOLLARS IN THE HOLE !!!

Katherine Flores (@guest_1286485)
Reply to  J.R. Justice
24 days ago

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cozycalico (@guest_1286508)
24 days ago

Can you even imagine if it was Biden making this deal how much America would be losing? Trump was a great negotiator and got some great deals while in office and Biden just is bent on destroying anything Trump accomplished. Biden is a detriment to our country with every deal he makes. Biden is a total disaster for America.

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