Friday, October 28, 2022

Boeing Admits Its Defense Contracts Are Money Losers

A KC-46A Pegasus tanker takes off March 17, 2022, from McConnell Air Force Base, Kansas, as part of the Air Mobility Command’s first KC-46 Employment Concept Exercise. (U.S. Air Force photo by Amn. William Lunn)  

Breaking Defense: Boeing defense racks up $2.8B in costs this quarter, with losses from KC-46 and new Air Force One  

“We’re not embarrassed by [the cost overruns]; they are what they are. And we intend to deliver against these contracts and satisfy our customers,” said Boeing CEO Dave Calhoun.  

WASHINGTON — Boeing disclosed a whopping $2.8 billion loss on defense programs this quarter, led by significant cost overruns on the KC-46 tanker and new Air Force One, the company stated today. 

Losses were sustained on KC-46, T-7A Red Hawk trainer, the Navy’s MQ-25 tanker drone, VC-25B — better known as Air Force One, when the president is onboard — and NASA’s Commercial Crew program, Boeing said in a news release. 

The overruns were “driven by higher estimated manufacturing and supply chain costs, as well as technical challenges” and “were also impacted by unfavorable performance on other programs,” Boeing said.  

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WNU Editor: Boeing is one of the largest recipients of aid and subsidies from the US Federal government. I am sure everything will even out in the end.

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