Latest news with #HouseArmedServiceCommittee
Yahoo
08-05-2025
- Business
- Yahoo
Boeing now plans to deliver new Air Force One jets in 2027, before Trump leaves office
Long-delayed next Air Force One jets from Boeing might now be delivered by 2027 — in time for President Donald Trump to use them, according to a top Air Force official. While that's still years behind the original delivery date of 2022, it's one to two years earlier than Boeing had most recently predicted. Trump has expressed anger at the delays, and he reportedly had been looking at buying a different jet to use on an interim basis. News of the potential 2027 delivery came Wednesday from Darlene Costello, the Air Force's acting acquisitions chief, who testified before the House Armed Service Committee about recent negotiations between the Air Force and Boeing. 'I would not necessarily guarantee that date, but they are proposing to bring it in '27, if we can come to agreement on the requirement changes,' Costello said. She was referring to contract requirements that are being loosened to get to that earlier date – such as the Air Force 'relieving' Boeing of some of the top-clearance security requirements for workers performing work on the aircraft, which has been blamed for some of the delays. Boeing said it had no comment on Costello's testimony. Keeping Trump and the Air Force happy is critical for Boeing, which gets 42% of its revenue from US government contracts, according to its most recent filing. Boeing's $3.9 billion contract to replace the two Air Force One jets has become an expensive and embarrassing albatross. Boeing has reported losses totaling $2.5 billion already on the program, known as VC-25B, since it agreed to be responsible for what has become soaring cost overruns. There are multiple reasons for the delay in delivery. After signing the original contract in 2017, Boeing began refurbishing two 747 jets in February 2020 that it had built for another customer but never delivered because of that customer's bankruptcy — a process that in hindsight probably was more expensive and time consuming than if it had built from scratch. And the onset of the Covid-19 pandemic, which started just weeks after Boeing began refurbishing the planes, caused significant additional delays. The two jets now in use, which have the code letters VC-25A and carry the Air Force One designation when the president is on board, have been in service for nearly 35 years, starting during the term of President George H.W. Bush. Replacing the planes has long been a priority for Trump. 'I'm not happy with the fact that it's taken so long,' Trump told reporters aboard Air Force One in February. 'There's no excuse for it.' He said he wouldn't turn to Boeing's European rival Airbus, but would consider buying a used 747 and having a different company refurbish it for use as Air Force One. Soon after those comments Boeing CEO Kelly Ortberg told investors that he is 'all in' on trying to speed up the delivery and praised suggestions made by Elon Musk, who visited the Texas facility where the work is being done in December on Trump's behalf. 'The president is clearly not happy with the delivery timing,' Ortberg said at that time. 'He's made that well known. Elon Musk is actually helping us a lot in working through the requirements… to try to help us get the things that are non-value-added constraints out of the way, so we can move faster and the president those airplanes.' Even before Trump took office for the first time in 2017, he complained about the cost of the Boeing contract and threatened to cancel an existing deal. In February 2018 he negotiated the current contract for two of the jets, which saved the Air Force $1.4 billion over the previous deal, the White House said at the time. He had requested that the aircraft be delivered by 2021. The Wall Street Journal, citing people familiar with the situation, reported last week that the government has commissioned defense contractor L3Harris to overhaul a Boeing 747 formerly used by the Qatari government, with the aim to have it in service by this fall as an Air Force One jet. But that contract has not been announced by the government, and Costello was not asked about it during the hearing. The challenge is not the basic jet, but what it takes to turn a run-of-the-mill Boeing 747 into the flying communications and command post fit for the president of the United States, said Richard Aboulafia, managing director at AeroDynamic Advisory, an aerospace consulting firm. They are supposed to be able to fly and protect its occupants from missile attack or even the shock waves of a nuclear blast. 'You can have a jet anytime,' he said. 'But it takes a great deal of work to have encrypted communications and manage the military and federal government from anywhere around the world in any circumstance.'
CNN
08-05-2025
- Business
- CNN
Boeing now plans to deliver new Air Force One jets in 2027, before Trump leaves office
Long-delayed next Air Force One jets from Boeing might now be delivered by 2027 — in time for President Donald Trump to use them, according to a top Air Force official. While that's still years behind the original delivery date of 2022, it's one to two years earlier than Boeing had most recently predicted. Trump has expressed anger at the delays, and he reportedly had been looking at buying a different jet to use on an interim basis. News of the potential 2027 delivery came Wednesday from Darlene Costello, the Air Force's acting acquisitions chief, who testified before the House Armed Service Committee about recent negotiations between the Air Force and Boeing. 'I would not necessarily guarantee that date, but they are proposing to bring it in '27, if we can come to agreement on the requirement changes,' Costello said. She was referring to contract requirements that are being loosened to get to that earlier date – such as the Air Force 'relieving' Boeing of some some of the top-clearance security requirements for workers performing work on the aircraft, which has been blamed for some of the delays. Boeing said it had no comment on Costello's testimony. Keeping Trump and the Air Force happy is critical for Boeing, which gets 42% of its revenue from US government contracts, according to its most recent filing. Boeing's $3.9 billion contract to replace the two Air Force One jets has become an expensive and embarrassing albatross. Boeing has reported losses totaling $2.5 billion already on the program, known as VC-25B, since it agreed to be responsible for what has become soaring cost overruns. There are multiple reasons for the delay in delivery. After signing the original contract in 2017, Boeing began refurbishing two 747 jets in February 2020 that it had built for another customer but never delivered because of that customer's bankruptcy — a process that in hindsight probably was more expensive and time consuming than if it had built from scratch. And the onset of the Covid-19 pandemic, which started just weeks after Boeing began refurbishing the planes, caused significant additional delays. The two jets now in use, which have the code letters VC-25A and carry the Air Force One designation when the president is on board, have been in service for nearly 35 years, starting during the term of President George H.W. Bush. Replacing the planes has long been a priority for Trump. 'I'm not happy with the fact that it's taken so long,' Trump told reporters aboard Air Force One in February. 'There's no excuse for it.' He said he wouldn't turn to Boeing's European rival Airbus, but would consider buying a used 747 and having a different company refurbish it for use as Air Force One. Soon after those comments Boeing CEO Kelly Ortberg told investors that he is 'all in' on trying to speed up the delivery and praised suggestions made by Elon Musk, who visited the Texas facility where the work is being done in December on Trump's behalf. 'The president is clearly not happy with the delivery timing,' Ortberg said at that time. 'He's made that well known. Elon Musk is actually helping us a lot in working through the requirements… to try to help us get the things that are non-value-added constraints out of the way, so we can move faster and the president those airplanes.' Even before Trump took office for the first time in 2017, he complained about the cost of the Boeing contract and threatened to cancel an existing deal. In February 2018 he negotiated the current contract for two of the jets, which saved the Air Force $1.4 billion over the previous deal, the White House said at the time. He had requested that the aircraft be delivered by 2021. The Wall Street Journal, citing people familiar with the situation, reported last week that the government has commissioned defense contractor L3Harris to overhaul a Boeing 747 formerly used by the Qatari government, with the aim to have it in service by this fall as an Air Force One jet. But that contract has not been announced by the government, and Costello was not asked about it during the hearing. The challenge is not the basic jet, but what it takes to turn a run-of-the-mill Boeing 747 into the flying communications and command post fit for the president of the United States, said Richard Aboulafia, managing director at AeroDynamic Advisory, an aerospace consulting firm. They are supposed to be able to fly and protect its occupants from missile attack or even the shock waves of a nuclear blast. 'You can have a jet anytime,' he said. 'But it takes a great deal of work to have encrypted communications and manage the military and federal government from anywhere around the world in any circumstance.'
Yahoo
16-03-2025
- Business
- Yahoo
Fixing the US Navy's shipbuilding problems starts with the workers, agency analysts say
US shipbuilding problems are decades old and raising concerns about US Navy readiness. Officials, naval affairs experts, and politicians believe the primary issue revolves around workers. Wages, working conditions, and retention are top priorities. The American shipbuilding industry is grappling with severe problems, none perhaps more crucial than the state of the workforce, naval affairs experts said this week. Addressing the shipbuilding industry's workforce challenges, they explained, starts with competitive wages, quality-of-life improvements, and retention of skilled employees. At a House Armed Service Committee Seapower and Projection Forces subcommittee hearing, members and witnesses talked about some of the woes facing US shipbuilders, such as the smaller industrial base and erratic demand signals from the Navy, and how these long-standing challenges are affecting top Navy programs. "To say this plainly, we must act now," said Sen. Trent Kelly, the subcommittee chairman. "Whether through changes to our procurement processes, stronger industrial base investments, or cultural shifts within shipbuilding program offices," the Mississippi Republican said, "we need to make these decisions sooner rather than later." A range of topics were discussed during the hearing, but the problems relating to shipbuilding workers were center stage. The consensus among witnesses like Eric Labs, senior analyst for naval forces and weapons with the Congressional Budget Office, and Shelby Oakley, the director of contracting and national security acquisitions with the Government Accountability Office, was that the starting point for fixing US shipbuilding issues is investing in the workforce. "In my view, nothing is more important than addressing the critical labor shortages that afflict all the shipbuilding and public maintenance yards," Labs said. Recruitment has been low, and retention difficult, especially in trades such as welding, ship fitters, and pipe fitters. The primary solution brought up was higher wages. Worker pay isn't competitive enough, experts argued, especially for what can be a demanding job, meaning potential workers are opting for employment at retail outlets and other places. There's a decline in interest in manufacturing jobs and not enough investment in fixing that. Other related problems are improving the quality of life and working conditions in the yards, cheaper housing, and more benefits. Upping automation in shipyards, as well as better worker training, too, were included. There have been proposals put forward for better pay, as that's been a focus for industry and the Navy, but the challenges aren't easily solved. Higher wages invite entry-level workers, experts said, but then those yards must retain those skilled workers and invest in their careers. Oakley's statement to lawmakers this week, which featured information from the GAO's study on Navy shipbuilding, said that shipyards are largely struggling to replace the loss of experienced, skilled workers with new ones. This issue applies, too, to white-collar shipbuilders like designers, naval architects, and engineers who "can take other jobs," Ronald O'Rourke, a naval affairs analyst with the Congressional Research Service, said. There is also overlap with maintenance and repair yards. Oakley noted that the Navy's strategy has to focus on that alongside building, as they're inseparable and face similar issues, especially with regard to labor. Some major US shipbuilders, especially those working on top US Navy submarines and surface ships, have pointed out the differences between their workforces today and 30 years ago: they're having trouble hiring people and keeping experienced workers. They've also spoken to the overlap between these labor issues and other problems in shipbuilding. The Navy has often had inconsistent demand signals for its programs, which leaves industry in an uncertain place for hiring and maintaining workers. US commercial and military shipbuilding problems are a priority in Washington right now. President Donald Trump has announced plans to create a White House office dedicated to the issue, and both his pick for Navy secretary and his defense secretary have highlighted the focus on shipbuilding. The urgency is especially felt amid China's continued shipbuilding dominance. China boasts the largest shipbuilding industry in the world, vastly overshadowing the US, with blurred lines between its commercial and military yards. As the US continues to prioritize meeting China's rise and the state of great power competition, shipbuilding has come to the forefront as a potential problem for the American military should the US and China clash at sea. As it stands, the Navy's plans to continue building and maintaining its fleet will come at a hefty price tag. The US Congressional Budget Office said earlier this year it expected the Navy, based on the service's 2025 shipbuilding plan, to need about $40 billion each year through 2054. But due to infrastructure and workforce limitations, the GAO said, "none of the seven shipbuilders that construct Navy battle force ships are currently positioned to meet the Navy's ship delivery goals." Read the original article on Business Insider
