Boeing agreed to a fixed-price contract with the US Air Force for the new jets, and is expected to lose around $2 billion after delays and cost overruns.

Aerospace giant Boeing remains on track to deliver two new 747-8s that will serve as future presidential aircraft, the company confirmed on Sunday. Current plans call for the aircraft, which Boeing is now modifying, to be set for a 2028 handover.

That will be a full decade after the company was first awarded a $3.9 billion fixed-price contract to handle the security upgrades and enhancements for jets that will serve as “Air Force One” when the president is on board. The two 747-8 aircraft—designated VC-25B in US military service—are set to replace the current VC-25A variants that entered service in 1990, during then-President George H.W. Bush’s single term in office.

President Donald Trump has never been particularly impressed with the aging aircraft, and pushed for the new models to be fast-tracked into service. However, since Boeing received its initial contract, the price tag for the upgrades has steadily climbed to more than $5 billion, and could go even higher before the two aircraft are finally delivered.

That is bad news for the aerospace firm and its stockholders, as the fixed-price contract will mean that Boeing, not the United States government or taxpayers, will absorb the nearly $2 billion in extra costs.

Boeing Says Aircraft Will Meet Delivery Schedule

“We’re on track for 2028,” Steve Parker, CEO of Boeing subsidiary Boeing Defense, Space & Security (BDS), told reporters on Sunday ahead of the Farnborough Air Show in the UK.

The CEO acknowledged that costs have ballooned, and warned that there could be further increases before the two 747-8s enter service.

“I do expect to see some cost growth there as we come through and we finish ‌off ⁠the wiring and the structures, as well as finishing up our own certifications,” Parker said.

Ongoing engineering complexities, supplier issues, and pandemic-era inflation have plagued the program. It is four years behind schedule, which may explain why Boeing is ready to move mountains to get these aircraft finished and delivered.

Qatar-Donated Bridge Aircraft Set to Receive Defensive Upgrades

On Sunday, Trump flew to New Jersey to attend the World Cup final on the new, Qatari-gifted Boeing 747-8. The president also told reporters that the “donated” aircraft could be sidelined briefly to receive security upgrades.

“It has a lot of capability,” Trump said of the jet, responding to a question about its missile-defense capabilities. “But as I understand it, in about a month or so, they’re gonna send it to have it be maxed out… It’ll take about a month.”

Trump flew to Ankara, Turkey, earlier this month to attend the NATO summit in the new 747-8, only to make part of the trip in one of the older 747 aircraft. The president and entourage then changed planes at Royal Air Force (RAF) Mildenhall, which led to speculation about the security of the Qatari-gifted jet. That aircraft is not believed to be equipped with the missile detection and countermeasure systems of the older models.

The donated 747-8, which is serving as a “bridge” aircraft between the older models and those two set to enter service in 2028, recently underwent a year-long upgrade. Analysts and aviation experts have questioned whether the jet, also designated a VC-25B by the United States Air Force, has the necessary level of security.

The Secret Service reportedly urged Trump to travel home from Ankara on the older aircraft, as it was departing not far from the Middle East, and hostilities with Iran had resumed. Indeed, Trump took the VC-25A jet from Ankara to the relative safety of the United Kingdom, then switched back to the Qatari aircraft for the final leg of the journey home.

“The safety and security of the commander in chief is our highest priority,” Secretary of the Air Force Troy Meink said when the aircraft was officially unveiled at Joint Base Andrews, Maryland, in June. “From the beginning, we meticulously evaluated every requirement to accelerate delivery while maintaining the high standards expected of the presidential mission. This effort proves that the US Air Force can move fast without sacrificing quality, security, or reliability.” 

About the Author: Peter Suciu

Peter Suciu has contributed to dozens of newspapers, magazines and websites over a 30-year career in journalism. He regularly writes about military hardware, firearms history, cybersecurity, politics, and international affairs. Peter is also a contributing writer for Forbes and Clearance Jobs. He is based in Michigan. You can follow him on Twitter: @PeterSuciu. You can email the author: Editor@nationalinterest.org.

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