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Yahoo
14-05-2025
- Business
- Yahoo
Turning Qatari 747 into Air Force One could cost $1 billion and take years, experts say
Converting a Qatari-owned 747 jet into a new Air Force One for President Donald Trump would involve installing multiple top-secret systems, cost over $1 billion and take years to complete, three aviation experts told NBC News. They said that accepting the 13-year-old jet would likely cost U.S. taxpayers hundreds of millions of dollars over time, noting that refurbishing the commercial plane would exceed its current value of $400 million. The project might also not be completed by the end of Trump's term in 2029, at which time the plane is expected to be handed over to Trump's presidential library foundation. Richard Aboulafia, an analyst and consultant on commercial and military aviation, said he thought turning the Qatari jetliner into Air Force One would cost billions and take years. 'You're taking a 747, disassembling it, reassembling it, and then jacking it up to a very high level,' said Aboulafia, a managing director at AeroDynamic Advisory, a consulting firm. The White House did not immediately respond to a request for comment. Aviation experts refer to Air Force One as the most complicated aircraft on the planet. The plane is meant to serve as a secure communication center in the sky — including command and control of nuclear weapons — and allow the president to issue orders to military and government agencies in the event of war or other emergency. Experts said the idea made no financial or practical sense given that Boeing is already deep into a multiyear effort to convert two 747s to replace current Air Force One planes. They said that the contract for refurbishing the Qatari 747 would likely go to Boeing as its original manufacturer. 'Since you're also disassembling and reassembling the jet for security reasons, you're probably going to go with the people who know it better,' Aboulafia said. 'If you have to rip the plane apart, that's more of a Boeing job.' Some of the work could be done by L3 Harris, which specializes in this kind of work. The work would likely be done in Greenville, Texas. Qatari officials have said that the possible transfer of an aircraft for use as a new Air Force One plane is under consideration but no final decision has been made. The Qatari jumbo jet would have to be effectively dismantled, part by part, to ensure there were no listening devices, spyware or other security vulnerabilities that could allow foreign powers to eavesdrop on the president's plane. It would then have to be fitted with costly, sophisticated systems for secure government communications, midair refueling, missile defense, countering electronic jamming and protecting against electro-magnetic pulse attack. There would likely need to be quarters added for White House medical staff and the Secret Service. Installing the new systems could push the project into the 2030s, according to Aboulafia, who said that equipping the plane with midair refueling capability alone would be 'enormously time-consuming.' The White House has said the jet would be handed over to Trump's presidential library foundation by the end of his term, in January 2029. That would presumably require the removal of all the sensitive government equipment installed on the aircraft. Trump could override current Air Force security rules but usually employees working on presidential aircraft or similar sensitive projects need a high-level security clearance, known as a 'Yankee White' clearance, according to an industry member who asked not to be named. In the past, Boeing has struggled to find enough workers with the necessary security clearances to do the work. In 2018, the Air Force issued a contract to Boeing to convert two 747s to eventually serve as new Air Force One aircraft, for $3.9 billion. In 2019, the Pentagon estimated that the total estimated cost of building, equipping and testing the planes would be higher, at about $5.3 billion. The project has been plagued by delays and cost overruns. The jets were supposed to be ready by last year but may not be delivered until 2029. At a congressional hearing on May 8, Darlene Costello, principal deputy assistant secretary of the Air Force for acquisition, technology and logistics, told lawmakers that the new planes could be ready by 2027 by reducing some of the requirements for the aircraft. In 2022, Boeing's then-CEO, Dave Calhoun, suggested the firm should not have accepted the Trump administration's terms in 2018 on the new Air Force One. For Boeing, converting the Qatari jetliner under a new contract could be good news as it has lost money on the fixed-cost contract it agreed to during Trump's first term, as it has had to absorb major cost overruns, Aboulafia said. 'This would be a real relief for Boeing,' he said. This article was originally published on
NBC News
13-05-2025
- Business
- NBC News
Turning Qatari 747 into Air Force One could cost $1 billion and take years, experts say
Converting a Qatari-owned 747 jet into a new Air Force One for President Donald Trump would involve installing multiple top-secret systems, cost over $1 billion and take years to complete, three aviation experts told NBC News. They said that accepting the 13-year-old jet would likely cost U.S. taxpayers hundreds of millions of dollars over time, noting that refurbishing the commercial plane would exceed its current value of $400 million. The project might also not be completed by the end of Trump's term in 2028. Richard Aboulafia, an analyst and consultant on commercial and military aviation, said he thought turning the Qatari jetliner into Air Force One would cost billions and take years. 'You're taking a 747, disassembling it, reassembling it, and then jacking it up to a very high level,' said Aboulafia, a managing director at AeroDynamic Advisory, a consulting firm. The White House did not immediately respond to a request for comment. Aviation experts refer to Air Force One as the most complicated aircraft on the planet. The plane is meant to serve as a secure communication center in the sky — including command and control of nuclear weapons — and allow the president to issue orders to military and government agencies in the event of war or other emergency. Experts said the idea made no financial or practical sense given that Boeing is already deep into a multiyear effort to convert two 747s to replace current Air Force One planes. They said that the contract for refurbishing the Qatari 747 would likely go to Boeing as its original manufacturer. 'Since you're also disassembling and reassembling the jet for security reasons, you're probably going to go with the people who know it better,' Aboulafia said. 'If you have to rip the plane apart, that's more of a Boeing job.' Some of the work could be done by L3 Harris, which specializes in this kind of work. The work would likely be done in Greenville, Texas. Qatari officials have said that the possible transfer of an aircraft for use as a new Air Force One plane is under consideration but no final decision has been made. Dismantled, part by part The Qatari jumbo jet would have to be effectively dismantled, part by part, to ensure there were no listening devices, spyware or other security vulnerabilities that could allow foreign powers to eavesdrop on the president's plane. It would then have to be fitted with costly, sophisticated systems for secure government communications, midair refueling, missile defense, countering electronic jamming and protecting against electro-magnetic pulse attack. There would likely need to be quarters added for White House medical staff and the Secret Service. Installing the new systems could push the project into the 2030s, according to Aboulafia, who said that equipping the plane with mid-air refueling capability alone would be 'enormously time-consuming.' The White House says the jet would be handed over to Trump's presidential library foundation by the end of his term in January, 2029. That would presumably require the removal of all the sensitive government equipment installed on the aircraft. Trump could override current Air Force security rules but usually employees working on presidential aircraft or similar sensitive projects need a high-level security clearance, known as a 'Yankee White' clearance, according to an industry member who asked not to be named. In the past Boeing has struggled to find enough workers with the necessary security clearances to do the work. 'A real relief for Boeing' In 2018, the Air Force issued a contract to Boeing to convert two 747s to eventually serve as new Air Force One aircraft, for $3.9 billion. In 2019, the Pentagon estimated that the total estimated cost of building, equipping and testing the planes would be higher, at about $5.3 billion. The project has been plagued by delays and cost overruns. The jets were supposed to be ready by last year but may not be delivered until 2029. At a congressional hearing on May 8, Darlene Costello, principal deputy assistant secretary of the Air Force for acquisition, technology, and logistics, told lawmakers that the new planes could be ready by 2027 by reducing some of the requirements for the aircraft. In 2022, Boeing's then-CEO, Dave Calhoun, suggested the firm should not have accepted the Trump administration's terms in 2018 on the new Air Force One. For Boeing, converting the Qatari jetliner under a new contract could be good news as it has lost money on the fixed-cost contract it agreed to during Trump's first term, as it has had to absorb major cost overruns, Aboulafia said. 'This would be a real relief for Boeing,' he said.
Forbes
13-05-2025
- Politics
- Forbes
Qatar's Royal Boeing 747-8 Gift To Trump Is A Vanity Air Force One
US President Donald Trump gestures as he walks to board Air Force One at Joint Base Andrews in ... More Maryland on May 12, 2025. President Trump is travelling to the Middle East, where Saudi Arabia will be the first stop on a four-day trip. (Photo by Brendan SMIALOWSKI / AFP) (Photo by BRENDAN SMIALOWSKI/AFP via Getty Images) President Trump could receive a VIP-configured Boeing 747-8 as a gift from the Qatari royal family. The aircraft would serve as Air Force One throughout the president's term in office. Aircraft ownership would transfer to the Trump Presidential Library Foundation at the end of his term rather than remain a U.S. Air Force asset to serve future presidents, as other Air Force One aircraft do. As such, the Qatari luxury plane could become the president's private aircraft after he leaves office, replacing his aging Boeing 757 Trump Force One. However, Trump has denied he would use the aircraft, so it might just become a museum piece like Ronald Reagan's Air Force One. Whatever its fate, the $400 million gift has raised some ethical and technical concerns. While the debate on these is ongoing, experts agree that the Qatari 747-8 is unlikely to meet current and future Air Force One standards. As Richard Aboulafia, an industry analyst and managing director of AeroDynamic Advisory, told DefenseNews: 'It's all based on an embarrassing misunderstanding of what Air Force One is meant to do. If it's a gold-plated palace in the sky and nothing more, have at it. If it's an actual tool [to be used in a] Air Force One is the military handle given to the U.S. Air Force planes carrying the president of the United States. So, being labeled Air Force One is a low bar. If Trump chose to fly on the Qatari 747 during his term, it would be Air Force One regardless of its capabilities. However, the presidential aircraft built for and operated by the U.S. Air Force currently serving as Air Force One are not ordinary 747s. They are VC-25, based on the 747 airframe but equipped with multiple additional features that ensure the president's security and the continuity of the administration under the most dire circumstances, including in cases of nuclear war. The contract to build two new Air Force One VC-25B aircraft to the latest U.S. Air Force specifications was awarded to Boeing during Trump's first term under a $3.9 billion fixed-price contract. Boeing has incurred over $2 billion in losses on the program and has yet to complete the aircraft. The impact of COVID-19 on production, supplier issues, and other Boeing complications have significantly delayed the new VC-25Bs. When Trump took office for his second term, the two new planes were not expected to be delivered until 2029. That has recently changed to as early as 2027. As such, Trump has expressed his displeasure with Boeing's delays on several occasions. In February, he visited the 12-year-old Qatari 747-8 parked at Palm Beach International Airport in what seemed to be another message to Boeing to hurry the program along. However, converting the second-hand Qatari royal aircraft to meet the full VC-25B specifications is likely a prolonged and costly effort. That would not satisfy Trump's urgency to fly on a new Air Force One. The U.S. Air Force's two new presidential aircraft are built on a 747-8I (intercontinental 747-8 base) but equipped with advanced technologies that help the aircraft serve as a flying situation room, enabling the President to direct the U.S. military and the government in flight during a catastrophic event. For example, Doug Birkey, executive director of the Mitchell Institute for Aerospace Studies, described the advanced communications systems of the VC-25 to Defense News as 'one of the most exquisite comm suites on the planet,' adding, 'It functions as a command and control center under some of the most trying conditions [imaginable]. Even just day-to-day, that thing is hyper connected.' The aircraft also has multiple classified electronic and defense systems installed and redundant systems to ensure the safety and security of its passengers. The two existing Air Force One VC-25As in service can remain in flight indefinitely during a crisis through air-to-air refueling capabilities, though that capability was not specified for the new VC-25Bs. According to the U.S. Air Force, the current presidential transport's other unique features include a self-contained baggage loader and front and rear airstairs. Onboard, the aircraft has an executive suite for the president, including a stateroom with a dressing room, lavatory and shower. It also holds the president's office and a conference dining room for the president. The aircraft has separate accommodations for staff, Secret Service, security and media personnel. Two galleys onboard can prepare up to 100 meals per service. There are six passenger lavatories onboard, plus a rest area and mini-galley for the aircrew. Additionally, the aircraft has a room equipped to handle 'minor medical emergencies' with adequate medical equipment and supplies. The unclassified December 2022 U.S. Air Force specifications for the VC-25B call for 'an electrical power upgrade, dual auxiliary power units that are usable in flight, a mission communication system, an executive interior, military avionics, a self-defense system, autonomous enplaning and deplaning, and autonomous baggage loading.' Upgrading the Qatari royal family's 747-8 to meet VC-25B standards would be costly and time-consuming. 'If [Trump] wants all the capabilities and features of Air Force One, this would be a step backwards,' Aboulafia told Defense News. 'They'd have to start over again with what they've been working on with the other 747-8 [in the VC-25B program].' Fully equipping the Qatari 747-8 to VC-25B standards is unlikely during the rapid conversion Texas-based L3Harris plans to perform on the second-hand aircraft. The company, which is a contractor to Boeing on communications systems for the VC-25 program, has said it would complete the conversion by the end of this year. However, at most, L3Harris would adjust the interior to meet the President's needs and enhance communications services onboard. The aircraft might also get Trump's preferred Air Force One red, white and blue livery, despite the heat exposure issue of the darker blue paint. However, no contractor could install the VC-25B's unique defense systems and redundancies in that timeframe. Trump took to his Truth Social platform to address criticism of the possible Qatari gift, arguing, 'So the fact that the Defense Department is getting a GIFT, FREE OF CHARGE, of a 747 aircraft to replace the 40 year old Air Force One, temporarily, in a very public and transparent transaction, so bothers the Crooked Democrats that they insist we pay, TOP DOLLAR, for the plane.' As Trump plans to transfer the plane to his Presidential Library Foundation, the gift would not be to the Defense Department but to himself. Also, there has been no indication that the president would cancel the existing VC-25B program, so the Defense Department would not save anything through the transaction. Another concern is that free sometimes also comes at a price. Experts point out that the Defense Department would first need to clear the Qatari plane for any security vulnerabilities, such as listening devices hidden onboard, before it could be converted and deployed into service for the president. 'It would present a major security concern,' Aboulafia said. Technically, the 12-year-old Qatari 747-8 would neither be a new Air Force One (except in the sense that it has not previously operated under that handle) nor a fully-equipped Air Force One. However, it would be called Air Force One as soon as Trump steps onboard and Trump could routinely fly on his vanity Air Force One while he is in office. The president would still have two fully capable Air Force One aircraft at his disposal, ready to go into service when needed. The VC-25A planes could be deployed at a moment's notice from Andrews Air Force Base when the president requires proper defense. The main concern for national security would be to ensure that the VC-25B program go ahead as planned so that the updated Air Force Ones can serve the next president of the United States.
Forbes
13-05-2025
- Politics
- Forbes
Why Qatar's Royal Boeing 747-8 Gift To Trump Is A Vanity Air Force One
US President Donald Trump gestures as he walks to board Air Force One at Joint Base Andrews in ... More Maryland on May 12, 2025. President Trump is travelling to the Middle East, where Saudi Arabia will be the first stop on a four-day trip. (Photo by Brendan SMIALOWSKI / AFP) (Photo by BRENDAN SMIALOWSKI/AFP via Getty Images) President Trump could receive a VIP-configured Boeing 747-8 as a gift from the Qatari royal family. The aircraft would serve as Air Force One throughout the President's term of office. Aircraft ownership would transfer to the Trump Presidential Library Foundation at the end of his term rather than remain a U.S. Air Force asset to serve future presidents, as other Air Force One aircraft do. As such, the Qatari luxury plane could become the President's private aircraft after he leaves office, replacing his aging Boeing 757 Trump Force One. However, the President has denied he would use the aircraft, so it might just become a museum piece like Ronald Reagan's Air Force One. Whatever its fate, the $400 million gift has raised some ethical and technical concerns. While the debate on these is ongoing, experts agree that the Qatari 747-8 is unlikely to meet current and future Air Force One standards. As Richard Aboulafia, a respected industry analyst and managing director of AeroDynamic Advisory, told DefenseNews: 'It's all based on an embarrassing misunderstanding of what Air Force One is meant to do. If it's a gold-plated palace in the sky and nothing more, have at it. If it's an actual tool [to be used in a] Air Force One is the military handle given to the U.S. Air Force planes carrying the President of the United States. So, being labeled Air Force One is a low bar. If President Trump chose to fly on the Qatari 747 during his term, it would be Air Force One regardless of its capabilities. However, the Presidential aircraft built for and operated by the U.S. Air Force currently serving as Air Force One are not ordinary 747s. They are VC-25, based on the 747 airframe but equipped with multiple additional features that ensure the President's security and the continuity of the administration under the most dire circumstances, including in cases of nuclear war. The contract to build two new Air Force One VC-25B aircraft to the latest U.S. Air Force specifications was awarded to Boeing during President Trump's first term under a $3.9 billion fixed-price contract. Boeing has incurred over $2 billion in losses on the program and has yet to complete the aircraft. The impact of COVID-19 on production, supplier issues, and other Boeing complications have significantly delayed the new VC-25Bs. When Trump took office for his second term, the two new planes were not expected to be delivered until 2029. That has recently changed to as early as 2027. President Trump has expressed his displeasure with Boeing's delays on several occasions. In February, he visited the 12-year-old Qatari 747-8 parked at Palm Beach International Airport in what seemed to be another message to Boeing to hurry the program along. However, converting the second-hand Qatari royal aircraft to meet the full VC-25B specifications is likely a prolonged and costly effort. That would not satisfy Trump's urgency to fly on a new Air Force One. The U.S. Air Force's two new presidential aircraft are built on a 747-8I (intercontinental 747-8 base) but equipped with advanced technologies that help the aircraft serve as a flying situation room, enabling the President to direct the U.S. military and the government in flight during a catastrophic event. For example, Doug Birkey, executive director of the Mitchell Institute for Aerospace Studies, described the advanced communications systems of the VC-25 to Defense News as 'one of the most exquisite comm suites on the planet,' adding, 'It functions as a command and control center under some of the most trying conditions [imaginable]. Even just day-to-day, that thing is hyper connected.' The aircraft also has multiple classified electronic and defense systems installed and redundant systems to ensure the safety and security of its passengers. The two existing Air Force One VC-25As in service can remain in flight indefinitely during a crisis through air-to-air refuelling capabilities, though that capability was not specified for the new VC-25Bs. According to the U.S. Air Force, the current presidential transport's other unique features include a self-contained baggage loader and front and aft air stairs. Onboard, the aircraft has an executive suite for the President, including a stateroom with a dressing room, lavatory and shower. It also holds the President's office and a conference dining room for the President. The aircraft has separate accommodations for staff, Secret Service, security personnel and the media. Two galleys onboard can prepare up to 100 meals per service. There are six passenger lavatories onboard, plus a rest area and mini-galley for the aircrew. Additionally, the aircraft has a room equipped to handle 'minor medical emergencies' with adequate medical equipment and supplies. The unclassified December 2022 U.S. Air Force specifications for the VC-25B call for 'an electrical power upgrade, dual auxiliary power units that are usable in flight, a mission communication system, an executive interior, military avionics, a self-defense system, autonomous enplaning and deplaning, and autonomous baggage loading.' Upgrading the Qatari royal family's 747-8 to meet VC-25B standards would be costly and time-consuming. 'If [Trump] wants all the capabilities and features of Air Force One, this would be a step backwards,' Aboulafia told Defense News. 'They'd have to start over again with what they've been working on with the other 747-8 [in the VC-25B program].' Fully equipping the Qatari 747-8 to VC-25B standards is unlikely during the rapid conversion Texas-based L3Harris plans to perform on the second-hand aircraft. The company, which is a contractor to Boeing on communications systems for the VC-25 program, has said it would complete the conversion by the end of this year. However, at most, L3Harris would adjust the interior to meet the President's needs and enhance communications services onboard. The aircraft might also get Trump's preferred Air Force One red, white and blue livery, despite the heat exposure issue of the darker blue paint. However, no contractor could install the VC-25B's unique defense systems and redundancies in that timeframe. Trump took to his Truth Social platform to address criticism of the possible Qatari gift, arguing, 'So the fact that the Defense Department is getting a GIFT, FREE OF CHARGE, of a 747 aircraft to replace the 40 year old Air Force One, temporarily, in a very public and transparent transaction, so bothers the Crooked Democrats that they insist we pay, TOP DOLLAR, for the plane.' As the President plans to transfer the plane to his Presidential Library Foundation, the gift would not be to the Defense Department but to himself. Also, there has been no indication that the President would cancel the existing VC-25B program, so the Defense Department would not save anything through the transaction. Another concern is that free sometimes also comes at a price. Experts point out that the Defense Department would first need to clear the Qatari plane for any security vulnerabilities, such as listening devices hidden onboard, before it could be converted and deployed into service for the President. 'It would present a major security concern,' Aboulafia said. Technically, the 12-year-old Qatari 747-8 would neither be a new Air Force One (except in the sense that it has not previously operated under that handle) nor a fully-equipped Air Force One. However, it would be called Air Force One as soon as Trump steps onboard and Trump could routinely fly on his vanity Air Force One while he is in office. The President would still have two fully capable Air Force One aircraft at his disposal, ready to go into service when needed. The VC-25A planes could be deployed at a moment's notice from Andrews Air Force Base when the President requires proper defense. The main concern for national security would be to ensure that the VC-25B program go ahead as planned so that the updated Air Force Ones can serve the next President of the United States.
Yahoo
23-04-2025
- Business
- Yahoo
America's biggest exporter was already on the ropes. Then came tariffs
Boeing's problems the last six years have been legion. Tariffs could be yet another gut punch for the beleaguered company – and, given Boeing's importance as the top US exporter, for the economy as a whole. Boeing's jets could get millions of dollars more expensive if other countries impose their own tariffs on US goods. And the US tariffs already in place could send the cost of building planes here soaring due the Boeing's dependence on overseas suppliers. That would come on top of safety and quality control failures that have led to fatal crashes and grounding of its jets, a strike that shut much of its production for two months late last year and plunging demand for planes during the Covid-19 pandemic. The tariff battle is the last thing that Boeing needs right now, said Ron Epstein, an aerospace analyst with Bank of America. Alarm bells are already ringing over a possible US recession. Tariffs on aircraft and airplane components could hurt production at all manner of aerospace factories as well as their suppliers. That could help push the economy over the edge. 'If you're thinking about a manufacturing industry that is a net exporter, in a big way, why would you want to penalize it?' he said. Boeing executives told investors Wednesday that they believe that the Trump administration will help ease their tariff worries. 'I don't think a day goes by where we aren't engaged with someone in the administration including cabinet secretaries and up to POTUS himself,' Ortberg told investors, using the acronym for President of the United States. 'So this is a dynamic environment.' Ortberg said Boeing's discussions with the administration has indicated Trump understands 'the importance of the aerospace industry to the US economy and the role that Boeing plays as a top US exporter.' Despite its many problems, Boeing estimates that it supports 1.6 million jobs, directly and indirectly, including nearly 150,000 US employees of its own. Perhaps the first sign of problems came over the weekend, when two planes at a Boeing facility in China were returned to the company's Seattle facility rather than going to their Chinese customers. Boeing's Chinese customers are facing a 125% tariff on any US imports, which was retaliation for the US tariff of 145% on most Chinese imports. Ortberg confirmed the return of two planes from China in comments to investors Wednesday and said a third plane is set to return due to the tariffs. The turned-around jets could be just the beginning of Boeing's trade issues. China is the largest and fastest growing market for commercial jets. Boeing's own recent analysis estimated that Chinese airlines are expected to purchase 8,830 new planes over the next 20 years, which represents 10% to 15% of global demand, according to Richard Aboulafia, managing director at AeroDynamic Advisory. But the trade tensions between America and China have already caused Boeing to lose ground in China to its European rival Airbus. Chinese customers ordered 122 Boeing planes in 2017 and 2018. In the six years since then, that slumped to orders for only 28 planes, mostly for freighters or from Chinese leasing companies, which could be buying them on behalf of airlines outside China. Boeing has not reported a single order for a passenger jet from a Chinese airline since 2019. Wednesday Boeing reported a smaller-than-expected 49-cent-a-share core operating loss in first quarter. Ortberg cited several metrics that showed improvement in company operations in a note to employees, but he acknowledged that the trade issues could be a problem in its future results. Boeing still has a massive backlog of orders from Chinese airlines – 195 planes, according to analysis from Epstein. It also has orders for 678 additional planes from unidentified airlines, most of which could also be from China, Epstein said. The company can probably find alternative buyers even if its Chinese jet orders are canceled, given its multi-year global order backlog. Ortberg said it had planned to deliver about 50 planes to China this year, and that it should be able to find other buyers for those jets, assuming the Chinese tariffs on US exports there remain in place. 'There's plenty of customers out there looking for the Max aircraft,' he said. But if other countries tariff American aircraft as well, that could be a harder sell. So far only China has slapped retaliatory tariffs on US goods, but other countries could follow. Boeing, a major exporter, could then become a bargaining chip in the global trade war, even though it would also hurt international airlines in need of planes, said Epstein. 'Boeing is an easy target,' he said. Tariffing Boeing 'is an obvious thing to do.' But selling and delivering planes is only part of the problem for Boeing. Building them might become an issue, too, as it depends on foreign-made parts for about 80% its planes' content, according to Ortberg's recent congressional testimony. The wings on the 787 Dreamliner, Boeing's most valuable and expensive plane, come from Japan, for example. The door plug that blew out, mid-air, from a 737 Max in January 2024 came from a supplier in Malaysia – though the problems were caused not by the supplier but by Boeing, which did not replace four bolts needed to keep the door plug in place. Finding new American suppliers could be especially hard: Each new US part and supplier would need to be recertified by the Federal Aviation Administration, a process that can take more than a year all by itself. That leaves foreign parts – and tariffs to pay, raising the cost of building an already $50 million to $100 million aircraft by millions more. Boeing hasn't reported a full-year profit since 2018, running up a combined $51 billion in operating losses since then. And suppliers are in even worse shape. Spirit AeroSystems, which Boeing is purchasing, has warned investors of 'substantial doubt' about its ability to stay in business. Ortberg told investors the company believes that whatever tariff costs are imposed on imported parts can be handled as part of its ongoing financial plans. That is partially because the company ex pects to get credits, known as 'drawbacks,' on the cost of tariffs if a plane it builds is then exported. He said the net cost of the tariffs on imported part will end up being less than $500 million annually, which CFO Brian West described as 'managable.' Sign in to access your portfolio
