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Boeing 747 jumbo jets built as US government machines: failed deal with ex-President Trump
Photo: Carlos Barria / REUTERS
Boeing boss Dave Calhoun seemed contrite when presenting the latest business figures.
He had to admit that "the critics were right" when they questioned the $3.9 billion contract to build two new Air Force One planes for US presidents in 2018.
Calhoun's predecessor, Dennis Muilenburg, assured President Donald Trump at the time that the cost would not exceed $4 billion.
The reality looks different.
The price agreed was too low, Calhoun now told CNBC.
To make matters worse, you are also several years behind schedule.
Also because of the government machines, the group is now reporting billions of holes in the third quarter.
Increased costs and technical problems at a US Air Force tanker, a stealth drone and a trainer jet also resulted in a quarterly loss totaling $3.3 billion, Boeing said.
A year earlier, the minus had amounted to just $ 132 million.
Government contracts seem to be becoming a burden for Boeing.
Ironically, the military business, which is currently in demand in global politics, is causing problems for the aircraft manufacturer.
"Turnarounds take time," said the Boeing boss, with a view to the ongoing crisis at Airbus's competitor.
"But I have faith in our team and the actions we are taking going forward," Calhoun wrote in a memo to workers.
Across the group, revenues in the third quarter increased by just four percent to just under $16 billion.
The revenues of the armaments and space division collapsed by a fifth to 5.3 billion dollars.
Major order from Alaska Air
Not only the armaments division, but also the business with passenger and cargo aircraft for commercial aviation remained in the red in the third quarter - although sales here grew by 40 percent year-on-year thanks to significantly higher deliveries.
Boeing has been struggling with new problems since two planes in its important 737 Max model series crashed due to technical errors, in which a total of 346 people died in 2018 and 2019.
Overall, Boeing clearly missed the average expectations of industry experts.
The stock fell slightly in the premarket.
With a major order from the airline Alaska Air for 52 Boeing 737 Max, there was at least a little positive news on Wednesday.
In recent years, Boeing has repeatedly suffered billions of dollars in losses, mainly because of problems with its passenger aircraft.
The European competitor Airbus had already snatched the position as the world's largest aircraft manufacturer from the former world market leader in 2019.
Apr/dpa/Reuters
