Elon Musk, CEO of Tesla and SpaceX, recently visited Boeing’s facility in San Antonio, Texas, where the aerospace giant is modifying two Boeing 747-8 aircraft into the next generation of Air Force One for the United States Air Force (USAF). According to a report by Bloomberg, Musk’s visit was primarily to review the progress on these aircraft, which could be ready for use by Donald Trump as early as 2027, should he return to the presidency.
These aircraft, designated as VC-25B, will replace the VC-25A models, which are based on the older Boeing 747-200. The VC-25B aircraft will carry the Air Force One call sign whenever the US President is on board. However, The Wall Street Journal previously reported that delays could push the delivery date to 2029.
Air Force One Livery Controversy
One of the notable changes made under Trump’s administration was the redesign of Air Force One’s livery. In 2018, Trump approved a fixed-price $3.9 billion contract with Boeing and introduced a new color scheme—a combination of dark blue, red, and white, inspired by his personal aircraft.
However, during President Joe Biden’s tenure, the USAF announced in March 2023 that the new VC-25B livery would closely resemble the existing design while incorporating a modernized color palette. The updated version features:
- A slightly deeper blue than the current robin’s egg blue
- Darker blue engine coverings
- No polished metal sections, due to modern aircraft skin alloys
A thermal study conducted by the US Air Force revealed that Trump’s proposed livery would have required additional FAA qualification testing due to potential heat absorption issues in certain environments.
Interestingly, at Trump’s inaugural ball on January 20, a cake featuring a model of the VC-25B in Trump’s proposed colors was displayed. While it may seem symbolic, it has led to speculation that Trump may push for Boeing and the FAA to revisit the color scheme.
Boeing’s Cost Overruns on Air Force One Project
Boeing has faced major financial losses on the VC-25B project due to its fixed-price contract, meaning the company bears the burden of any cost overruns. While the contract wasn’t the primary reason for Boeing’s leadership shake-up in 2020, it added to the challenges faced by former CEO Dennis Muilenburg before he was ousted.
Boeing’s 2018 annual report highlighted the risks of fixed-price contracts, stating:
“While fixed-price contracts enable us to benefit from performance improvements, cost reductions, and efficiencies, they also subject us to the risk of reduced margins or incurring losses if we are unable to achieve estimated costs and revenues.”
Since 2020, Boeing has reported massive losses on the Air Force One project:
- 2020: $168 million loss due to engineering inefficiencies from COVID-19
- 2021: $318 million loss due to COVID-19 impacts and supplier performance issues
- 2022: $1.4 billion in reach-forward losses
- 2023: $482 million in cost overruns
- 2024: $250 million additional losses in Q2, with total losses exceeding $2.6 billion
Boeing’s preliminary Q4 2024 results indicated that its defense division would take an additional $1.7 billion hit, affecting multiple programs, including the KC-46A tanker, T-7A trainer, Commercial Crew, VC-25B, and MQ-25 drone projects.
Boeing’s Leadership Focus on Financial Recovery
Boeing’s new President and CEO, Kelly Ortberg, has acknowledged the challenges posed by fixed-price contracts and emphasized the need to improve performance in Boeing’s Defense, Space & Security (BDS) division.
As Boeing continues to manage cost overruns, the company must also navigate political and logistical challenges, particularly with the Air Force One program, which remains under scrutiny.
Elon Musk’s visit to Boeing’s San Antonio facility highlights the significance of the Air Force One project amid ongoing cost challenges and political debates over the aircraft’s design. With Trump’s influence on the project and Boeing’s financial struggles, the development of the next-generation presidential aircraft remains a key issue in US aviation and defense. Whether Trump’s proposed livery will be reconsidered remains uncertain, but Boeing’s financial recovery efforts will be closely watched in the coming years.
