Early in the last Presidency, the office holder demanded that Boeing cut $1 Billion off the estimated cost of the new Air Force One contract and make it “fixed price” to boot. Masterful.
Boeing now expects to lose $2 Billion or more on the contract, money that the taxpayer would be paying but for TFG.
intercst
From the article:
The company has been reporting losses on the planes for years, as CEO Dave Calhoun admitted last year that the company should never have signed the contract.
Translation: Don’t blame me. Blame the previous Jack Welch acolyte.
We are paying it. They claim a loss and then request a refund of taxes paid in previous years to cover those losses. They can also use any loss to offset future profits. Sound familiar? Lost a billion…
Calhoun is also a Welchist.
Given that Boeing had been building 74s since 1969, can’t help but wonder how they could honk it up so badly…but then Lockheed took an established, successful, helo design, the AW-101, and botched the Presidential helo job so spectacularly that the government cancelled the order, and the POTUS continues to ride in a 60 year old Sea King.
All hail Shiny defense contractors!
Steve
I wouldn’t worry too much about it. They’re probably cutting corners like not installing the backup hydraulics or leaving out the flares in the anti-aircraft defense system. There’s always a way to save a buck if you’ve been taught by Welch.