A Boeing illustration of new Air Force One jets.

A Boeing illustration of new Air Force One jets. Boeing

New Air Force One Delayed by COVID, Boeing Subcontractor

Boeing has fired GDC Technics, which is suing its erstwhile employer.

A $5 billion effort to build two new Air Force One jetliners is facing delays following problems with a key supplier and workforce issues related to the COVID-19 pandemic, according to U.S. Air Force and company officials.

Boeing on Wednesday reported a $318 million loss building two new presidential planes, which the Air Force calls the VC-25B. The losses come as Boeing is in a legal battle with GDC Technics, a former supplier that was hired to build the custom interiors on the new presidential aircraft, but had fallen a year behind on its work.

“Boeing has recently recommended a new VC-25B schedule to the Air Force,” Ann Stefanek, an Air Force spokeswoman, said in an emailed statement. “The Air Force is analyzing this schedule before taking any formal contractual or program actions.”

Boeing is supposed to deliver the first new Air Force One by 2024. Boeing is transforming the two 747-8 aircraft into flying White Houses in San Antonio, Texas.

In a legal filing earlier this month, Boeing said it canceled its contract with Texas-based GDC Technics on April 7 after the company fell a year behind schedule in its building the interiors for the new Air Force One. 

Boeing claims GDC “missed numerous deadlines and delivery dates, caused myriad disruptions to the VC-25B program, and made insufficient progress on the aircraft interior work that it was required to perform.” Boeing says the delays have cost the company “millions of dollars in costs that it would not have otherwise incurred.”

GDC, in a countersuit, blamed Boeing for the delays.

“It is Boeing’s project mismanagement, not GDC, that has caused the delivery of the two Air Force One Aircraft to be delayed beyond the expected completion date,” GDC said in an April 16 court filing.

Boeing is evaluating whether to hire a new company to do the work originally assigned to GDC or do the interior work itself.

“Boeing is working to mitigate any impact to these programs as well as to any of the sub-tier suppliers,” Deborah VanNierop, a Boeing spokeswoman, said in an emailed statement. “We have been working with several small businesses that are key sub-tier suppliers to GDC Technics, and plan to engage with all 52 small business sub tiers that contribute to these Boeing programs, in the immediate future. Additionally, we are coordinating closely with our customers.”

Boeing officials also said the COVID pandemic had put work on the planes behind schedule. 

“We...continue to manage the COVID-19 disruption on our programs, including impacts to the VC-25B program, where employee clearance constraints impedes our ability to exchange mechanics when quarantines are required,” Boeing CEO Dave Calhoun said Wednesday on the company’s quarterly earnings call.

All employees working on the new Air Force One require top secret security clearances. Last year, Boeing blamed pandemic-related problems for a $168 million loss on the project. The Air Force One contract requires Boeing, not taxpayers, to pay for cost overruns.

Despite the delays, Boeing said it continues “to make steady progress on this program and are working closely with the U.S. Air Force on updating the schedule.” The company declined to provide details about the revised schedule it proposed to the Air Force.

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.