Elon Musk visits Boeing amid challenges with new Air Force One project

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Global Industry News

Elon Musk visits Boeing amid challenges with new Air Force One project

Policy

Boeing Center at TechPort | Official Website

By Sky Industry News

Feb 3, 2025

Elon Musk, CEO of Tesla and SpaceX, recently visited Boeing's facilities in San Antonio, Texas. The company is currently modifying two Boeing 747-8 aircraft to become the next Air Force One for the United States Air Force (USAF). According to Bloomberg, Musk's visit aimed to review progress on the VC-25B aircraft, which former President Trump could potentially use by 2027.

The new aircraft will replace the older Air Force Ones based on the 747-200 model, designated as VC-25A. The USAF plans for these aircraft to be delivered in 2027 and 2028. Meanwhile, "the Air Force remains postured to keep VC-25A available and mission-ready until delivery of the VC-25B."

Trump initially awarded a fixed-price $3.9 billion contract to Boeing in 2018 for these modifications and proposed changing the aircraft’s livery. However, during Joe Biden's presidency, a new livery design was selected that "closely resembles the livery of the current Air Force One, VC-25A," while incorporating modern elements.

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A USAF statement indicated that Trump's proposed dark blue livery would require additional Federal Aviation Administration (FAA) testing due to potential heat issues from certain environments.

Boeing has faced financial challenges with this contract due to cost overruns beginning in 2020. These were initially attributed to “engineering inefficiencies from the COVID-19 environment” and later compounded by performance issues at a key supplier. The company reported reach-forward losses continuing through 2024, driven by higher costs related to engineering design changes.

The company's defense sector expects further pre-tax earnings charges related to several programs, including KC-46A and T-7A projects. Kelly Ortberg, Boeing's president and CEO, has stated his focus is on improving performance within Boeing Defense, Space & Security (BDS).

Sky Industry News