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Air Force One debacle: Boeing has now lost more than $1 billion on each of the president’s two new jets
Boeing 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 with the Air Force to produce the jets for $3.9 billion. Under pressure from then-President Donald Trump, who was threatening to cancel the contract for the planes, Boeing agreed to a fixed price contract on the two new jets. (www.cnn.com) Más...Sort type: [Top] [Newest]
This is what happens when Boeing signs a fixed cost contract that holds their feet to the ground on prices instead of the open ended contracts that allow them to keep increasing the prices for final products that they are used to signing with the govt.
Boeing needs to get better cost estimates prior to bidding these fixed price contracts. It’s tough. The folks who have real experience and are most knowledgeable are busy working other programs. Retirement has also depleted the workforce. But bottom line is that Boeing needs to insert more of these capable engineers and managers into the initial bidding process.
Part of the problem is that they are used to being able to bid low and then charge for cost over runs. It has become the standard when dealing with government contracts and when suddenly not allowed we get to see how badly messed up this system is. It’s partly Boeing, partly the bureaucracy, partly the politicians and even partly the voters who are at fault for letting it get this bad. So now the question is do we continue to follow this path of ludicrousy or do we demand that it ends.
It's quite simple. Boeing needs to sign the same contracts with all suppliers for this contract. This wouldn't happen.
omg how daare yewww
The MOST important things are DIE and ESG. Silly things like "profit" and "staying in business" don't matter any more!! It's 2023, everything's free, we will own nothing and we will be HAPPYYYY!!!!!
The MOST important things are DIE and ESG. Silly things like "profit" and "staying in business" don't matter any more!! It's 2023, everything's free, we will own nothing and we will be HAPPYYYY!!!!!
Estimates were made before the chinese flu hit, then everything (including prices) went to h*ll in a hand basket. Not saying Boeing can’t do better, but before then no one knew of the difficulties encountered.