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Yesterday β€” 21 May 2025Main stream

See inside the luxurious Boeing 747 Qatar is giving to Trump to serve as Air Force One

21 May 2025 at 10:30
Qatari Boeing 747
Flight records show the Boeing 747 in question flew to Mar-a-Lago, Trump's private club in Florida, in February.

ROBERTO SCHMIDT/AFP via Getty Images

  • The Trump administration said it has accepted a gifted Boeing 747-8 from Qatar.
  • The jumbo jet previously served as a luxurious private business jet.
  • The plane currently sports multiple bedrooms, a salon, a private living room, and a kids' playroom.

A luxurious jumbo jet that the Department of Defense said it had accepted as a gift from Qatar is chock-full of the glitz and grandeur President Donald Trump has shown a penchant for over the years.

First delivered to the Gulf state in 2012, the Boeing 747-8 that could soon serve as Air Force One is one of the most opulent private jets in the world and is much newer than the current fleet of jets that carry the President and other White House staff. Flight records show the plane flew to Mar-a-Lago, Trump's private club in Florida, in February.

The exact cost of the jumbo jet isn't clear, but a new 747-8 can fetch a cool $400 million. It's unclear what it may cost to retrofit with necessary communications and security features.

Trump has said he would be "stupid" to turn down the gifted Boeing 747, especially as he has been vocal about his disappointment in the delays for a replacement that Boeing might not be able to deliver until 2028.

Its cockpit may look like any 747, but behind it is where the opulence is revealed.
Boeing 747-8i Cockpit
The cockpit of a Boeing 747-8i.

Fasttailwind / Shutterstock.com

The gift has raised ethical concerns among both Democrats and Republicans, which the White House has dismissed. A Pentagon spokesperson said the gift is being accepted "in accordance with all federal rules and regulations."

An iteration of the luxurious aircraft β€” designed by French interior design firm Cabinet Alberto Pinto for its previous life serving a Middle Eastern businessman β€” gives us a peek inside the opulent plane as it may look upon delivery to the Department of Defense as the potential future Air Force One.

"The Department of Defense will work to ensure proper security measures and functional-mission requirements are considered for an aircraft used to transport the President of the United States," a Pentagon spokesperson said, adding no details on when it may enter service.

The interior is sectioned into several rooms, akin to a traditional home.
couches next to a staircase on a BOEING 747-8i BBJ
The spacious aircraft has a long, wide fuselage with couches along the sidewall for additional seating.

Cabinet Alberto Pinto

Think a foyer, couches, touchscreen light switches, and bedrooms with en-suite bathrooms.

The primary bedroom takes the most advantageous and private location.
loveseat under a TV screen in a BOEING 747-8i BBJ
The aircraft has suites, lounges, dining rooms, passenger seating areas, and bathrooms.

Cabinet Alberto Pinto

The spacious bedroom is perched in the nose of the aircraft, under the cockpit. It's a relatively quiet space, located furthers from the engine. And in lieu of two first-class seats, as the nose is often reserved for, the bedroom has a cozy loveseat.

The bedroom operates like that of a conventional residence.
empty bedroom of a Boeing 747-8i BBJ
The bedroom has plenty of storage space, including bedside tables and counter space with drawers.

Cabinet Alberto Pinto

Bedside tables and reading lights flank the mattress, perched across from the TV and loveseats. However, the walled cupholders still remind you that you're in an aircraft.

Otherwise, the en-suite bathroom looks quite orthodox, finished with a walk-in shower and a bright vanity.
bathroom with a vanity in a BOEING 747-8i BBJ
The bathroom has a vanity with plenty of shelves.

Cabinet Alberto Pinto

Showers, which aren't a staple fixture in commercial aircrafts, are a key selling point for Boeing and Airbus' private jets.

Guest bedrooms accommodate additional guests.
BOEING 747-8i BBJ
A guest room on board a Boeing Business Jet 747-8i.

Cabinet Alberto Pinto

Don't worry, they get their own bathrooms, too.

No need to stay tied down to a small passenger seat.
BOEING 747-8i BBJ
The salon has conventional living room amenities like couches around a coffee table.

Cabinet Alberto Pinto

The aircraft has private offices and dining areas. Or, use the salon as both.

Its couches are great for lounging, while the circular table can be used for work, dinners, or a round of poker.

It's an aircraft β€” of course, the plush leather seats can recline via switches in the armrest.
leather seats in a BOEING 747-8i BBJ
The leather seats can recline via switches built into the armrest.

Cabinet Alberto Pinto

Additional passengers and crew can be seated in a separate, smaller section with tables and in-flight entertainment systems.

The crew also has their own quarters, located up the foyer's staircase.

If the salon is the Oval Office, the upper deck is the executive residence.
living room with shelves and TV on a BOEING 747-8i BBJ
The upstairs has a living room, a kids' playroom, and the crew quarters.

Cabinet Alberto Pinto

In addition to the crew quarters, the second floor has a living room and a separate children's play area.

Yves Pickardt, the designer of this particular 747-8i and all of its homey amenities, previously told Altitudes Magazine that the aircraft took four years to design and complete β€” an indication of what the Secret Service may in for when it sets out to upgrade security, communications, and other systems if the President it to use the plane while in office.

An earlier version of this story was written by Taylor Rains and Tom Pallini.

Read the original article on Business Insider

Before yesterdayMain stream

This airline CEO is having another shot at a windfall worth more than $100 million

By: Pete Syme
19 May 2025 at 05:11
Ryanair Chief Executive Michael O'Leary stands at the podium before the airline's annual general meeting, in Dublin, Ireland, September 12, 2024.
Ryanair CEO Michael O'Leary.

Clodagh Kilcoyne/REUTERS

  • Michael O'Leary is set for a 100 million euro windfall if Ryanair stock stays above 21 euros for a month.
  • It's been there for 17 days, and rose again on Monday after reporting earnings.
  • Ryanair's profits fell 16%, but passenger numbers were up and a big share buyback was approved.

The CEO of Europe's biggest airline is set for another shot at one of the continent's biggest windfalls.

Ryanair's Michael O'Leary stands to receive stock options worth 100 million euros ($113 million) if the Irish budget carrier's share price trades above 21 euros for 28 days.

The stock has done well recently, staying above that price since May 2. It added another 3.3% in Dublin on Monday to just over 23 euros, valuing the company at more than 24 billion euros ($27 billion.)

While it spent a few days at this level last March and April, this is O'Leary's most promising rally yet.

In Monday's full-year earnings, Ryanair reported profits of 1.61 billion euros β€” a 16% fall compared with the previous 12 months.

While it reached a record 200 million passengers, tickets were 7% cheaper. O'Leary cited consumer spending pressure and "a big drop off" in bookings from online travel agents, following a dispute with them.

The airline also warned growth would slow due to delayed deliveries of Boeing planes. Having fewer planes than expected also meant that staffing costs were 17% higher this past financial year.

Ryanair also announced a share buyback worth 750 million euros.

Analysts at Peel Hunt said the airline traded at a "significant premium" to its peers and they maintained a "hold" rating with a target price of 21.50 euros.

The Financial Times previously reported that O'Leary's bonus deal was supposed to expire last year before being extended until 2028.

The potentially enormous payout isn't without its controversies, as Ryanair is known for its ancillary fees of up to three figures for changing a name or for hold baggage. The airline is getting rid of paper boarding passes later this year, however.

Such fees allow it to keep airfares as low as $20, but on some routes, tickets can still cost hundreds of euros.

When The Wall Street Journal asked about the potentially huge payout in an interview last year, the Ryanair chief gave a characteristically outspoken response.

"If premiership footballers are earning fucking 20 million a year and [Kylian] MbappΓ© is being paid 130 million to go play football for fucking Real Madrid, then I think my contract is very good value for Ryanair shareholders," O'Leary quipped.

Read the original article on Business Insider

Boeing was the real winner of Donald Trump's trip to the Middle East

By: Pete Syme
17 May 2025 at 02:42
U.S. President Donald Trump, Qatar's Emir Tamim bin Hamad Al Thani and Boeing CEO Kelly Ortberg attend a signing ceremony in Doha, Qatar, May 14, 2025
Donald Trump congratulated Boeing's CEO after signing a record-breaking order in Qatar.

Brian Snyder/REUTERS

  • Boeing secured a record-breaking $96 billion order from Qatar Airways during Donald Trump's trip.
  • It was one of several wins this week, showing the planemaker is recovering from a troubling 2024.
  • Trump's support came after tensions over Air Force One delays and concerns over a Qatari gift.

Boeing showed it's bouncing back from its turmoil as it won several victories from Donald Trump's trip to the Middle East.

On Wednesday, Qatar Airways agreed to buy at least 160 Boeing jets, in a deal the White House valued at $96 billion. It is the planemaker's largest-ever order for wide-body aircraft.

While the two CEOs signed certificates and shook hands, Trump and the Emir of Qatar applauded from behind the ornate desk. The president gave Boeing's Kelly Ortberg a pat on the back.

It's rare to see heads of state attend aircraft-order ceremonies. Trump's show of support for Boeing was a notable turn from the tensions between the two over delays in building the next Air Force One.

Receiving such a huge vote of confidence from an industry-leading airline is also a significant boost, especially since the order includes 30 Boeing 777X planes and options for dozens more.

The 777X is yet to be certified, running years behind schedule, meaning Qatar's order is a big show of faith in Boeing's future. Flight tests for the 777X had to be paused last August after damage was found on a key structure.

An aerial view of a Boeing 777X airplane parked at King County International Airport-Boeing Field in Seattle, Washington, U.S, June 1, 2022.
Delays to the 777X have annoyed many customers β€” but not Qatar Airways.

LINDSEY WASSON/REUTERS

Several customers, including the largest, Emirates, voiced their frustrations after Ortberg then announced its launch would be further pushed back to 2026.

However, Qatar Airways has never dwelt on the delays. "Let us not cry over spilled milk," CEO Badr Mohammed Al-Meer told Business Insider last July.

Boeing is also likely to benefit from Tuesday's defense deal with Saudi Arabia, which the White House called "the largest defense-sales agreement in history," at roughly $142 billion.

These are all significant signs that the planemaker hasn't lost too much of its reputation after an ignominious 2024.

The year began with a door plug falling off a 737 Max in midair. Regulators subsequently capped Boeing's production as it works to overhaul its processes.

This week has seen progress here, too, as Boeing said it delivered 45 commercial planes last month β€” almost double the number in the same period last year.

Trump's change of heart

Even before Qatar Airways' order, planes were dominating the headlines around Trump's trip.

The president said Monday he would be "stupid" to turn down the Qatari royal family's proposed gift of a Boeing 747.

It has raised ethical and legal concerns, with politicians on both sides of the aisle questioning the gift. The luxurious $400 million plane would be one of the most expensive gifts ever received by the government from another country.

The timing may also raise questions about Qatar's motivation for announcing the mammoth Boeing order during Trump's visit, rather than at next month's Paris Air Show.

Donald Trump raising a saber to cut a cake with a model of the new Air Force One plane on it. Melania Trump laughs as she watches on. Two members of the military stand behind them.
Donald Trump cut a cake adorned with the next Air Force One at his inaugural ball.

PATRICK T. FALLON/AFP via Getty Images

Trump wants the 747 to serve as Air Force One because Boeing is running years behind schedule in building the next presidential jet. He renegotiated the contract in his first term, and the planemaker has since lost billions on the project.

In February, Trump showed his frustration with the delays by touring a Qatari Boeing 747 in Palm Beach β€” believed to be the one now on offer.

So, his support for Boeing in Qatar shows a change of heart that will likely please the planemaker and help settle any apprehension over Air Force One.

The country's top exporter, Boeing, was also under threat from Trump's tariff plans.

Jets destined for Chinese airlines had to be sent back across the Pacific Ocean after they refused to accept them due to the trade war. On Monday, China and the US agreed to lower tariffs by 115%.

But overall, that may not be as valuable as the reputation boost provided during Trump's trip.

This week has helped the storied planemaker prove that it's moving on from the woes of 2024.

Read the original article on Business Insider

Trump is expected to receive a luxury jet from Qatar. Here's why the gift is raising red flags for legal experts.

US President Donald Trump walks off Air Force One .
US President Donald Trump walks off Air Force One, the official presidential plane.

Scott Olson/Getty Images

  • President Donald Trump is expected to receive a luxury jet from Qatar for use as the new Air Force One.
  • The gift raises questions under the foreign emoluments clause of the Constitution.
  • "A gift of this size from a foreign government is unprecedented in our nation's history," said Jessica Levison, a law professor.

Reports that President Donald Trump's administration is expected to receive a luxury jet as a gift from the Qatari royal family have drawn questions and criticism from legal experts.

At the core of the concern is the foreign emoluments clause of the Constitution, which prevents a person in a government office from accepting gifts or benefits from foreign parties without congressional consent.

"This definitely violates the foreign emoluments clause unless Congress gives consent," Richard Painter, the former chief White House ethics lawyer in the George W. Bush administration and a professor of corporate law at the University of Minnesota, told Business Insider.

"The fact that the plane goes to his presidential library after four years does not change that."

The gift from Qatar, a Boeing 747-8 jumbo jet, will be used as the new Air Force One, multiple outlets reported on Sunday, citing anonymous sources. It will be donated to Trump's presidential library when he leaves office. A new 747-8 costs about $400 million.

Trump appeared to confirm the reports in a Truth Social post on Sunday night.

"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," Trump wrote.

Ali Al-Ansari, Qatar's media attachΓ© to the US, told BI in a statement that the transfer of an aircraft for temporary use as Air Force One is "currently under consideration." The matter "remains under review by the respective legal departments, and no decision has been made," Al-Ansari said.

Boeing did not respond to a request for comment from BI.

An 'unprecedented' gift

U.S. President Donald Trump arrives at a campaign rally aboard Air Force One on October 28, 2020 in Bullhead City, Arizona.
The building of a new Air Force One has been plagued by delays.

Isaac Brekken/Getty Images

Jessica Levinson, a law professor and the director of the Public Service Institute at Loyola Law School, said that in addition to the foreign emoluments clause, federal statutes, such as the Foreign Gifts and Decorations Act and anti-bribery laws, may come into play.

"Outside of the legal context, it is fair to ask whether the acceptance of this gift could give rise to an apparent conflict of interest or corruption," she told BI.

Karoline Leavitt, the White House press secretary, told BI in a statement that any gift from a foreign government is "always accepted in full compliance with all applicable laws."

Levinson also pointed to the size of the gift.

"Perhaps the most important thing to remember is that the acceptance of a gift of this size from a foreign government is unprecedented in our nation's history," Levinson added. "Hence we do not have any direct historical analogs for this situation."

When asked about the legal mechanisms for addressing a violation of the foreign emoluments clause, Painter pointed to Congress.

"Investigation and possible impeachment is one remedy, but that's up to Congress," Painter said.

US politicians react

Senate Minority Leader Chuck Schumer
Senate Minority Leader Chuck Schumer was among the Democratic politicians to criticize the gift.

Chip Somodevilla/Getty Images

The reports drew criticism online from some leading US Democrats and at least one far-right activist with close ties to Trump.

"Nothing says 'America First' like Air Force One, brought to you by Qatar. It's not just bribery, it's premium foreign influence with extra legroom," Senate minority leader Chuck Schumer wrote on Facebook.

Democratic Rep. Adam Schiff quoted part of the foreign emoluments clause in a post on X, and wrote, "Seems pretty clear that a $400 million 'air palace' from a foreign emir qualifies. The corruption is brazen."

Democratic Rep. Jamie Raskin also took to X to criticize the gift.

"Trump must seek Congress' consent to take this $300 million gift from Qatar. The Constitution is perfectly clear: no present 'of any kind whatever' from a foreign state without Congressional permission. A gift you use for four years and then deposit in your library is still a gift (and a grift)," Raskin wrote.

Laura Loomer, a far-right activist with direct ties to Trump, also took to social media to criticize news of the gift.

"This is really going to be such a stain on the admin if this is true. And I say that as someone who would take a bullet for Trump," Loomer wrote on X.

Trump has been putting pressure on Boeing to deliver the next Air Force One, which is behind schedule and over budget.

Boeing was first tapped in 2015 to deliver the two new presidential planes. The delivery was initially set for 2024, then delayed until 2027 or 2028.

Last week, a US Air Force official said Boeing could deliver the new Air Force One jets by 2027, while Trump is still in office.

Read the original article on Business Insider

Trump might get the new Air Force One while he's still president after all

9 May 2025 at 05:15
A Boeing 747 airplane that serves as Air Force One when the President of the United States is aboard,
The Boeing 747 that serves as Air Force One when the president is on board.

SAUL LOEB / AFP

  • Boeing may deliver the new Air Force One jets by 2027, two years earlier than projected.
  • The company has faced cost overruns and operational challenges, with the program $2 billion over budget.
  • That timescale would allow Donald Trump to fly on the jets while he's still president.

Boeing could now deliver the next-generation Air Force One aircraft while President Donald Trump is still in office, a US Air Force official said.

The planes could be delivered by 2027 β€” two years earlier than previously expected, but still five years behind the original schedule.

Darlene Costello, the acting assistant secretary of the Air Force for acquisition, revealed the update during a House Armed Services Committee hearing on Wednesday.

"We are looking at the requirements that are being potentially traded off to get to that date, and so I would not necessarily guarantee that date, but they're proposing to bring it into '27," she said.

One major change already agreed is the relaxation of a requirement that Boeing staff working on the project hold top-level security clearances, which had contributed to previous delays. Additional holdups were caused by supplier changes, engineering challenges, and pandemic-related workforce constraints.

"We are absolutely committed to delivering an aircraft with the communications and defensive capabilities required for presidential transport," Costello told the hearing.

The revised timeline comes as Boeing works with the Air Force to streamline requirements for the new VC-25B jets β€” modified 747 aircraft that will replace the ageing VC-25As. The updates aim to reduce production delays that have plagued the $3.9 billion program.

During his first term in office, Trump struck a deal with Boeing to acquire two new 747-8 aircraft, with initial delivery scheduled for 2024.

The two planes had been ordered by Transaero, a Russian airline that filed for bankruptcy before they were delivered.

Both planes, which first flew in 2016, have logged fewer than 20 hours in the air and have been at Lackland Air Force Base in San Antonio since 2019 for conversion.

Since taking on the fixed-price contract, Boeing has struggled with cost overruns and operational disruptions.

The aerospace giant recently acknowledged that the program is now $2 billion over budget.

If Boeing manages to meet the 2027 target, Trump could fly on the new aircraft while still in office.

The president has previously criticized delays in the project, prompting renewed pressure on Boeing from both the Air Force and political leaders.

Boeing did not immediately respond to a request for comment from Business Insider.

Read the original article on Business Insider

Boeing gets another boost as credit agency says it won't cut its rating to junk status

By: Pete Syme
29 April 2025 at 03:08
A Boeing 737 Max gives a display during the opening day of the Farnborough International Airshow in Hampshire.
Delivering more 737 Max jets is expected to help turn Boeing's cash flow positive.

Andrew Matthews/PA Images via Getty Images

  • S&P Global Ratings says it's no longer considering downgrading Boeing to junk status.
  • The firm raised billions in equity after losing lots of money in a challenging 2024.
  • It's also set to ramp up production of the 737 Max, an important source of profit.

Boeing has another reason to believe that its turnaround year is on track.

S&P Global Ratings said on Monday that it was no longer considering downgrading the planemaker to junk status.

The credit rating agency grades companies based on how likely they are to repay debt, and a lower rating makes it more expensive to borrow money. S&P had put Boeing at risk of a downgrade in October.

Boeing reported a cash balance of $23.7 billion at the end of the first quarter β€”Β a positive sign after hemorrhaging money throughout a testing 2024.

Last year, the company faced a quality crisis after a door plug came off an Alaska Airlines 737 Max that had been delivered to the carrier just 66 days earlier. The Federal Aviation Administration subsequently restricted its production of the aircraft type to 38 a month.

A seven-week strike also temporarily shut down production of the Max, a significant cash cow for Boeing.

Boeing assuaged its troubles last October by raising $24.3 billion of equity.

S&P also cited the planemaker's deal to sell portions of its aviation-software business to private equity firm Thoma Bravo, which is expected to raise $10 billion.

However, cash flow remains a concern, with S&P affirming Boeing's BBB- rating.

But it looks like the company is set to start making money as it ramps up and stabilizes production of the Max.

"The key to cash generation will be continued progress on the 737 Max ramp," Boeing CEO Kelly Ortberg said in an earnings call last Wednesday.

He added that it is currently producing a number in the low 30s, but expects to reach the cap of 38 over the next few months. By the end of the year, Boeing plans to ask the FAA to increase this to 42.

S&P expects Boeing's negative cash flow to continue throughout the second quarter, but sees this turning around with more Max deliveries in the second half of the year.

"We view Max production recovery as key to returning the company to profitability and positive free cash flow generation," the ratings agency said.

Boeing reported first-quarter revenues of $19.5 billion, up 18% from the year before. However, it had a loss per share of 16 cents, and free cash flow was negative $2.3 billion.

Read the original article on Business Insider

Boeing CEO says F-47 fighter jet win over Lockheed cements its spot in the fighter business. It's back in the stealth fighter game.

24 April 2025 at 07:43
An artist rendering of an F-47 fighter jet emerging from a hangar, with the US flag hung above it.
An artist rendering of the US Air Force's sixth-generation fighter, the F-47.

US Air Force

  • Boeing's CEO said its win over Lockheed Martin "will secure our fighter franchise for decades to come."
  • He called being selected for the first US sixth-generation aircraft a key step for Boeing's future.
  • While Boeing has continued to build other fighter jets, the contract is a big return to the stealth fighter game.

Boeing's CEO said that the US Air Force's pick of its sixth-generation fighter design over Lockheed Martin cements its spot in the fighter jet business. The win puts it back in the stealth fighter game after its Joint Strike Fighter loss over two decades ago.

Boeing CEO Kelly Ortberg said on an earnings call on Wednesday that President Donald Trump and the Air Force awarding Boeing the contract to build the Next Generation Air Dominance (NGAD) fighter, called the F-47, was "a transformational accomplishment."

He said being the prime defense contractor for the world's first sixth-generation fighter "will secure our fighter franchise for decades to come." He later added that the "F-47 win is a key step for building our future, cementing our franchise in the fighter business."

Competition for the next-gen fighter was stiff, with fighter jet designs from Lockheed Martin, Boeing, and Northrop Grumman under consideration. When the latter withdrew from the project, it left only the same two contractors that competed for the Joint Strike Fighter at the turn of the century.

The announcement that Boeing will build the next stealth fighter jet came after decades of Lockheed Martin dominating the stealth fighter industry. Lockheed's Skunk Works built the first operational stealth aircraft, the F-117 Nighthawk, and then it was the prime contractor for both US fifth-gen stealth fighters, the F-22 Raptor and the F-35 Lightning II Joint Strike Fighter.

Lockheed's selection for what later became the F-35 program in 2001 was a heavy blow to Boeing, which had worked with Lockheed on the F-22, a fifth-generation air superiority fighter. The coming F-47 is expected to replace F-22, and it is expected to be ready for combat by the end of this decade.

An F-35 is seen on the flight deck of the amphibious assault ship USS Tripoli.
An F-35 is seen on the flight deck of the amphibious assault ship USS Tripoli.

US Navy photo by Mass Communication Specialist 3rd Class Maci Sternod

In 2022, the head of Boeing's defense division, Ted Colbert, said that "fighters are an important business to the Boeing Company" and that "we haven't given up the fight in that space. We are continuing to invest in it."

Boeing builds capable fourth-generation fighters like the Air Force's F-15 Eagle and Navy's F/A-18 Super Hornets, but until recently, it had been out of the stealth fighter game for a while.

Lockheed Martin's CEO said in response to the decision that it would not protest Boeing's selection for the NGAD program. Instead, the company is talking about supercharging the F-35 jet, turning it into a kind of fifth-gen plus fighter aircraft.

James Taiclet said on a Lockheed earnings call this week that the company would instead upgrade the F-35 to be able to reach 80% of the F-47's capabilities for half the cost. He said that the effort would be informed by what the company learned in its bid for the sixth-generation fighter contract.

The new Boeing contract is said to be cost-plus, which means the government covers Boeing's expenses as it develops the jet and also gives Boeing a fee that can be altered based on how well the jet performs.

Ortberg was questioned about this and what risk the company was taking with the F-47 on Wednesday's call and responded by saying he would not comment on the contract structure.

He said that Boeing had not committed to any "undue risk." The Boeing CEO added that "clearly, we haven't come off our strategy of ensuring we're entering into the appropriate contract type for the appropriate type of work.

"I wouldn't worry that we've signed up to undue risk like we've done in some of our past fixed price programs, but that's about all I can say on that right now," he said. Boeing lost billions of dollars on the contract for the new Air Force One.

President Donald Trump sitting in the Oval Office, with a mockup of the F-47 displayed next to him.
President Donald Trump announced that the Air Force had awarded the F-47 contract to Boeing.

Photo by Annabelle Gordon / AFP

Boeing presented a positive picture of the company's defense business and overall finances in its earnings call, reporting a smaller-than-expected quarterly loss.

It reported a loss of 49 cents per share in the first quarter, while analysts had expected it to report an adjusted loss of $1.29 per share, according to data compiled by LSEG and reported by Reuters.

Brian West, Boeing's executive vice president and chief financial officer, said on the call that Boeing's core defense business "remains solid, representing approximately 60% of our revenue and performing in the mid to high single digit margin range. The demand for these products remains very strong, supported by the threat environment confronting our nation and our allies."

He said "the game plan" is to get the Boeing Defense, Space & Security division "back to high single-digit margins."

He said that "the defense portfolio is well-positioned for the future, and we still expect the business to return to historical performance levels as we continue to stabilize production, execute on development programs, and transition to new contracts with tighter underwriting standards."

When Trump announced Boeing's NGAD contract win in March, the president suggested the US might export the jet, but it would be a less-capable version. The US regularly sells modified export versions of weapons, but that is a notable departure from the F-35. The F-22 notably was never exported.

It's unclear what this will mean for the F-47, as it's still early days. Lately, Trump's isolation of allies has rattled the F-35 program. Some European companies have been seeking to capitalize, but that program continues.

Frank Kendall, the former secretary of the US Air Force during the Biden administration, said on Defense & Aerospace Report's "Air Power" podcast in March that he doubted US allies would be willing to buy the F-47 because of the expected costs and the new attitude toward allies.

Kendall paused the NGAD program last year over concerns about the potential cost β€” some estimates were as high as $300 million per plane β€” and questions about whether a new crewed fighter aircraft is what the Air Force needs for future fights. He left that decision to the Trump administration.

After the decision, Kendall questioned whether the new administration rushed into the F-47. Congress, he said, needs to ask hard questions: "Is this the right airplane for our defense strategy? Is it affordable? Does it displace higher priorities?"

Read the original article on Business Insider

Boeing has a $1 billion China problem — and a fix

23 April 2025 at 23:43
A Boeing 737 Max at an airshow.
50 Boeing planes bound for Chinese airlines now need a new home.

JUSTIN TALLIS/AFP/ Getty Images

  • Boeing must sell 50 planes originally intended for China due to trade war challenges.
  • The Chinese planes are worth more than $1 billion in revenue for Boeing.
  • Restrictions from other countries would be a challenge for the aircraft industry, Boeing's CEO said.

Boeing is collateral damage in the US's trade war with China.

The American plane maker said it has about 50 planes that must be sold to other airlines. Chinese customers said they won't take deliveries because of tariffs.

"Right now, China's our only problem," Boeing's CEO, Kelly Ortberg, said on an earnings call on Wednesday. "We're going to work our tail off to make sure that China issue doesn't implicate our recovery."

Boeing's chief financial officer, Brian West, said that China made up 10% of the company's commercial backlog. He said Boeing is looking for ways to redirect its planes to places with more "stable demand."

The 50 planes bound for China are worth over $1 billion in revenue, West said.

Chinese airlines have returned two completed planes to the US, and there are plans to return a third one, Ortberg said on CNBC on Wednesday.

But years of delivery delays mean other customers are lining up.

The CEO of Malaysia Aviation Group β€” the parent company of the country's national carrier, Malaysia Airlines β€” told state media that it is talking with Boeing about taking over the delivery slots.

"We've really had a good start to the year, and I'm glad we put a conservative plan together that allows us to deal with the tariffs," Ortberg said.

Boeing reported $19.5 billion in first-quarter revenue, up 18% compared to last year. It narrowed losses to $31 million.

Boeing's stock closed 6% up on Wednesday.

Speaking to POTUS himself

Boeing executives expressed concerns about President Donald Trump's tariffs on the rest of the world, including about what happens if other countries follow in China's footsteps.

"I don't think a day goes by where we aren't engaged with someone in the administration, including cabinets, cabinet secretaries, and up to POTUS himself," Ortberg said. He added: "Aircraft are such a significant part of our trade surplus, and if we see markets closing that's going to be a big challenge for us."

The executives said that most of Boeing's supply chain is based in the US, and many of their Mexico and Canada imports have tariff exemptions. Still, they estimated that higher tariffs could cost the company $500 million annually.

Boeing is recovering from a series of hits last year, including a mass workers' strike and financial losses. Imposition on deliveries threatens its market share as it competes with Europe's Airbus and newer entrants from China.

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Trump's tariffs are a make-or-break moment for China's upstart planemaker Comac

By: Pete Syme
22 April 2025 at 05:50
Commercial Aircraft Corporation of China (COMAC) C919 narrow-body airliner is on display during the 2021 China Aviation Industry Conference And Nanchang Air Show on October 30, 2021 in Nanchang, Jiangxi Province of China.
The Comac C919 relies on dozens of US manufacturers.

Li Tong/VCG via Getty Images

  • A trade war between the US and Europe could see more airlines turn to China's Comac, analysts said.
  • However, Comac also relies heavily on US parts that already face enormous tariffs.
  • At the moment, Airbus looks set to benefit as China turns away Boeing deliveries.

China's new planemaker could find fortune or ruin depending on the future of Donald Trump's tariff plan.

Comac, officially the Commercial Aircraft Corporation of China, launched its C919 aircraft in 2023. The narrow-body jet is similar to an Airbus A320 or Boeing 737, and has competitors on their toes.

While Comac delivered just 13 such jets last year, all to Chinese airlines, it has a backlog of over 1,000 orders. Airbus CEO Guillaume Faury believes Comac's rise could see the sector go "from a duopoly to a potential triopoly."

Trump's tariffs are a pivotal moment for Comac. On the one hand, tariffs could widen the appeal of Chinese aircraft both domestically and abroad,Β but the C919 also relies on dozens of American parts.

A trade war between the homes of aviation's two major players, Boeing and the European planemaker Airbus, has the potential to open a lane for Comac.

Trump initially announced a 20% higher rate on all imports from the European Union but later halved that amid a 90-day pause.

Delta Air Lines CEO Ed Bastian has said he would defer deliveries of any Airbus jets that are tariffed. Michael O'Leary, CEO of Ryanair, has said similar regarding Boeing planes.

While the pause staved off the bloc's plan for retaliatory tariffs, it isn't a closed case just yet.

Earlier this month, analysts at Barclays predicted that the possibility of tariffs on Airbus and Boeing aircraft "might well prove the catalyst to launch the competing Chinese C919 narrow body onto the international stage."

"Would Ryanair consider the C919 with fresh interest if the Max 10 deliveries are delayed and all Max deliveries are subject to tariffs?" the analysts added.

The Irish budget airline has a strong relationship with Boeing and only flies 737 jets. However, the airline group also operates subsidiaries that use Airbus planes.

O'Leary appears open to the idea of ordering the C919, too.

"The Chinese are basically building a fucking A320. So if it was cheap enough β€” 10 or 20% cheaper than an Airbus aircraft β€” then we'd order it," he told Skift in late March.

"I don't care who makes them, whether it's Boeing, Airbus, or Comac. As long as the price is right, we'd buy it," he added.

Comac relies heavily on parts from the US and Europe

China's self-developed passenger jet C919 makes its first international debut in a flight demonstration at the Singapore Airshow on February 20, 2024 in Singapore.
Comac's C919 is a rival to the Boeing 737 and Airbus A320.

Wan Quan/VCG via Getty Images

However, Comac's pricing is under threat from tariffs because the C919 is heavily dependent on imports. Trump has imposed tariffs of 145% on Chinese goods, with retaliatory tariffs of 125% on US goods entering China.

According to analysts at Bank of America, the C919 has 48 major suppliers from the US, 26 from Europe, and just 14 from China.

"If China stops buying aircraft components from the US, the C919 program is halted or dead," they wrote in a report last week.

It looks like Chinese airlines won't have many alternatives, though. Flight tracking data has shown several Boeing 737 Max jets returning from China to the planemaker's Seattle home.

With planemakers facing huge backlogs, Boeing would not struggle to reallocate any aircraft turned away by Chinese airlines. The BofA analysts see India as a potential recipient. Malaysian Airlines' managing director also told a state news outlet that it's talking to Boeing about acquiring any such jets.

However, Boeing would be ceding huge ground to Airbus, which has a final assembly line in Tianjin. The European planemaker predicts China will be the world's biggest market for aviation services by 2043, accounting for 20% of all aircraft deliveries.

While Trump has criticized Boeing for delays to the new Air Force One project, it seems unlikely he would let one of the country's biggest exporters suffer much.

Aviation has already been one of the industries most affected by Trump's tariff plans.

A US-China trade war could ruin Comac but increase Airbus' dominance. Alternatively, more airlines around the world could look to the C919 if Airbus and Boeing both face tariffs in a US-EU trade war.

For now, it looks like Comac will struggle, but with Trump's tariff plans frequently changing, the Chinese planemaker's future remains uncertain.

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A Boeing plane made for a Chinese airline was sent back to the US

20 April 2025 at 23:12
A 737 Max plane meant for Xiamen Airlines in Seattle on April 20.
On Sunday, a 737 Max plane meant for a Chinese airline was returned to Boeing's production hub in the US.

Dan Catchpole/Reuters

  • A Boeing jet meant for Xiamen Airlines returned to Boeing's US production hub on Sunday.
  • Another is en route from China to the US territory of Guam.
  • Boeing has said China is a "significant market" and that trade restrictions would hurt its market share.

A Boeing jet made for China's Xiamen Airlines was returned to Boeing's American production hub as the American aviation giant finds itself caught up in the trade war.

According to online flight records, a 737 Max flew from Zhoushan and landed in Seattle on Sunday night local time.

Reuters first reported the plane landing, saying that it was among several 737 Max jets that had been waiting at Boeing's Zhoushan completion center for final work and delivery to Chinese airlines.

The Puget Sound Business Journal reported in 2020 that Xiamen Airlines cut its flights to Seattle in 2019. Previously, it flew Boeing 787s on the route.

It is unclear why the plane was returned to the US and whether more aircraft bound for Chinese airlines will be sent back.

Data from AirNav Radar showed another Boeing 737 Max from Zhoushan heading to Guam on Monday morning local time β€” a frequent stop for planes traveling back to the US.

Boeing and Xiamen Airlines did not immediately respond to requests for comment from Business Insider.

Last week, Bloomberg reported, citing anonymous sources, that China has ordered its airlines to stop taking deliveries of Boeing planes and American aircraft parts, as a new measure against its trade war with the US.

After the Bloomberg story, President Donald Trump said on Truth Social that China "just reneged on the big Boeing deal, saying that they will 'not take possession' of fully committed to aircraft."

Xiamen Airlines is a subsidiary of China Southern Airlines, a state-owned carrier that is among the country's "Big Three" airlines.

On April 11, China Southern Airlines stopped the sale of 10 of its used Boeing 787-8 Dreamliner planes, per a filing with Shanghai United Assets and Equity Exchange. China Southern had planned to replace its Dreamliners with bigger and newer planes, but it reversed its decision.

The state of the trade war

The US-China trade war escalated quickly in Trump's second term.

China has curbed the import of Hollywood films and added tariffs to various US goods. The US put restrictions on Nvidia selling its H20 chips to China, a move analysts said is essentially a ban on exporting those chips.

China has a 125% duty on American goods. The White House said Chinese products face a levy of up to 245%.

China is an important market for Boeing, which has been recovering after a string of financial and reputational losses last year. Any imposition on deliveries threatens its market share as it competes with Europe's Airbus and newer entrants from China.

In its 2024 annual report filed in February, Boeing called China a "significant market" that would be affected by "deterioration in geopolitical or trade relations." Boeing did not break down the company's revenue by region.

Boeing is among the US's 100 most valuable companies and employed 172,000 people as of December. Its stock is down 8.5% this year.

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Seat the rich: Saudi Arabia's new airline plans to compete for first-class passengers

By: Pete Syme
19 April 2025 at 05:00
A Riyadh Air Boeing 787 Dreamliner in purple livery on the tarmac at the Dubai Air Show 2023.
Riyadh Air is set to start flying in the last three months of this year.

Pete Syme/Business Insider

  • Riyadh Air is in talks to buy more aircraft, and CEO Tony Douglas wants them to include first class.
  • The most luxurious cabin has enjoyed a recent resurgence, with European carriers raising the bar.
  • Saudi Arabia's new airline unveiled its business class ahead of a launch in the last three months of 2025.

First class is enjoying a resurgence β€” and Saudi Arabia's new airline plans to include the elite cabin on some of its planes.

Riyadh Air is in talks about a third aircraft type in addition to its orders for dozens of Airbus A321neos and Boeing 787 Dreamliners.

"We are at the moment involved in an extra-wide-body campaign as well," CEO Tony Douglas told Business Insider, in a reference to the largest aircraft types such as the Airbus A350 or Boeing 777X.

He said these planes would "almost certainly" include a first-class cabin.

Riyadh Air CEO Tony Douglas speaking at a conference
Riyadh Air CEO Tony Douglas.

Chandan Khanna/AFP/Getty Images

Douglas's comments come as more airlines bet on the most lavish tier, especially in Europe.

Air France's La Première, which debuted this month, has two seats and takes up the length of five windows.

Lufthansa's Allegris first class launched in November with floor-to-ceiling walls and a double bed. British Airways plans to retrofit its Airbus A380s with new first-class suites entering service next year.

Their plans follow an influx of rich Americans visiting Europe since the pandemic ended. New suites are raising the bar because first-class airfares typically cost five figures, so some customers that wealthy could also afford to travel by private jet.

A woman reclining and watching TV in Air France's new La Première first class suite.
Air France upgraded its La Première first-class suite, making it 25% longer.

Claire-Lise Havet/Air France

A startup as ambitious as Riyadh Air would also want to compete for the richest travelers.

As part of Saudi Arabia's Vision 2030 plan to diversify its economy, the new airline hopes to help attract more tourists to the kingdom. It would likely also turn Riyadh into a travel hub with a hub-and-spoke route model similar to other Middle Eastern carriers like Emirates and Etihad, where Douglas used to be CEO.

An opulent first-class cabin would help Riyadh display a level of luxury at least equal to its competitors. Saudi Arabia is the wealthiest country in the Middle East and ranks 19th worldwide for GDP.

Starting a new airline is a difficult task, especially as demand faces constraints with economic uncertainty from President Donald Trump's trade tariffs.

However, Douglas pointed to data from credit card companies showing that since the pandemic, some people are more interested in paying for experiences like travel.

"Because the kingdom is growing at the rate that it is doing, because the population is large and young, we don't see any signs of [travel demand] abating," he said.

"The market already exists, so it's not as if we're gambling on trying to build a market. We're completely underserved within the kingdom."

A rendered image of two Business Elite seats made up into a double bed with the divider down on board a Riyadh Air Boeing 787
Riyadh Air's Business Elite seats can turn into a double bed.

Courtesy of Riyadh Air

The airline on Saturday unveiled its cabin interiors for the Boeing 787. It has a front row of four "Business Elite" seats with 32-inch TVs, which the carrier says are the largest of any business class.

In the center, removing the divider essentially creates a double bed similar to Qatar's QSuite, named the world's best business class by Skytrax.

Douglas told BI he was especially proud of the design details such as the suite number lights, marble veins, and "mocha gold" color accents.

Despite the huge ticket prices, first class is typically less profitable than business class. That's because the suites take up a lot of space on board and offer top amenities.

American Airlines is the only US carrier to offer it, and on a fraction of its long-haul jets even then. Qatar Airways has turned away from first class, instead saying its QSuite business class is just as good.

Airbus 350-1000 QSuite
A QSuite in double-bed configuration on Qatar Airways.

David Ibekwe

Douglas spoke similarly highly of Riyadh Air's Business Elite suites, but is still eyeing the crème de la crème too.

He said the airline decided not to include first class in its initial fleet due to "uncertainty" around the supply chain.

Launch delay

Aircraft seats have been a particular difficulty since the pandemic ravaged international supply chains, delaying plane deliveries. Air India CEO Campbell Wilson previously told BI how much he wanted to get "these damn seats installed on the aircraft."

Riyadh Air previously hoped to start flying this spring but has been hampered by Boeing delivery delays as the planemaker overhauled its production processes to deal with a safety and quality crisis.

Douglas told BI that Riyadh Air is on track to take flight in the last three months of 2025.

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Boeing is in the crosshairs of the US-China trade war

16 April 2025 at 00:18
A Boeing factory
Boeing shares are down after a Bloomberg story about orders in China.

China News Service/Getty Images

  • Boeing shares fell 2.4% on Tuesday as China reportedly halted orders amid ongoing tariff tensions.
  • China Southern Airlines stopped its plan to replace 10 Boeing 787-8 because of trade restrictions.
  • Boeing earlier said its business in China could be affected by a "deterioration in geopolitical or trade relations."

President Donald Trump's tariffs on China are hurting a prized American company: Boeing.

Boeing's stock fell 2.4% on Tuesday after Bloomberg reported, citing anonymous sources, that China ordered its airlines to stop taking deliveries of Boeing planes and American aircraft parts. After the Bloomberg story, Trump said on Truth Social that China "reneged on the big Boeing deal."

Last week, China Southern Airlines stopped the sale of 10 of its used Boeing 787-8 Dreamliner planes, per a filing with Shanghai United Assets and Equity Exchange. China Southern had planned to replace its Dreamliners with bigger and newer planes, but it reversed its decision.

It is unclear whether the airline suspended its plan because of China's order to stop buying planes from Boeing or because American products now carry a levy of 125%, which would raise the prices of new Boeing purchases.

On April 11, the airline filed notices saying it was suspending the sale of the planes. China Southern cited "matters affecting the property transaction." Nikkei first reported the sale suspensions.

Boeing did not immediately respond to a request for comment.

Eating into market share

China is an important market for the recovering US plane maker. Last year, it took a series of hits last year including a mass workers' strike and financial losses. Any imposition on deliveries threatens its market share as it competes with Europe's Airbus and newer entrants from China.

In its 2024 annual report filed in February, Boeing called China a "significant market" that would be affected by "deterioration in geopolitical or trade relations." Boeing did not break down the company's revenue by region.

"If we are unable to deliver aircraft to customers in China consistent with our assumptions and/or obtain additional orders from China in the future, we may experience reduced deliveries and/or lower market share," the company wrote.

China Southern and Air China, both state-owned airlines, are among the 10 largest carriers in the world based on revenue.

A restriction on buying whole planes or parts from the US could lead to other Chinese government-owned carriers, such as China Eastern, Hainan Airlines, Sichuan Airlines, looking to France-based Airbus or domestic plane makers for new orders, further hurting Boeing.

Two of the world's largest carriers, Ryanair and Delta, have previously said that they would delay Boeing deliveries if tariffs are imposed on their orders.

"We might delay them and hope that common sense will prevail," Ryanair's CEO, Michael O'Leary, told the Financial Times in comments published Tuesday.

Boeing stock is down 12% so far this year.

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2 of the world's biggest airlines say they'll reject new planes if Trump's tariffs push up prices

By: Pete Syme
15 April 2025 at 03:41
A Ryanair plane on a runway passing by a control tower.
Ryanair joined Delta in saying it would say no to new planes if tariffs make them more costly.

Marcos del Mazo/LightRocket via Getty Images

  • Ryanair's CEO said tariffs would mean "there's every likelihood we may delay" aircraft deliveries.
  • Michael O'Leary added that he hoped "common sense will prevail."
  • It comes after Delta Air Lines' CEO also said he would delay receiving any tariffed planes.

Europe's biggest airline joined Delta in saying it is ready to delay plane deliveries if Donald Trump's trade war makes them more expensive.

"If tariffs are imposed on those aircraft, there's every likelihood we may delay the delivery," Ryanair CEO Michael O'Leary told the Financial Times in comments published Tuesday.

"We might delay them and hope that common sense will prevail," he added.

The Irish budget carrier exclusively uses Boeing 737s, of which it has around 600.

O'Leary told the FT that Ryanair is set to receive another 25 Boeing planes from August, but the airline's schedule means it doesn't necessarily need these until March or April next year.

His comments come less than a week after Delta CEO Ed Bastian said the same about coming deliveries of planes from Boeing's rival, Airbus.

Bastian said on an earnings call that Delta would not accept cost increases on 34 new Airbus jets it expects to be delivered before the end of the year.

"One thing you need to know we're very clear on is that we will not be paying tariffs on any aircraft deliveries," he told investors.

"We will defer any deliveries that have a tariff on it," he added.

The European Union last week suspended retaliatory tariffs of 25% on certain US goods in hopes of negotiations.

However, both Boeing and Airbus planes could still face price increases because the aviation sector has a worldwide supply chain. One-fifth of Boeing's production materials are imported, CEO Kelly Ortberg told a Senate hearing earlier this month.

Trump has imposed 10% tariffs on all imports other than from China, which faces a higher rate, and 20% on steel and aluminum β€” key materials for planes.

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Passenger's bathroom nightmare is turning into another headache for Boeing

By: Pete Syme
14 April 2025 at 07:42
A Boeing 737 Max is displayed during the Farnborough Airshow, in Farnborough, on July 18, 2022
The FAA may order bathroom door latches to be replaced on thousands of Boeing 737s.

JUSTIN TALLIS/AFP via Getty Images

  • The FAA is proposing an airworthiness directive for thousands of Boeing 737s.
  • The cost of replacing latches on bathroom doors could reach $3.4 million.
  • The move comes after a passenger was trapped in a bathroom, leading to a flight diversion.

Thousands of Boeing 737 planes may need modification after a flight was diverted when a passenger got stuck in a bathroom.

The Federal Aviation Administration published a notice on Friday proposing an airworthiness directive for 2,612 Boeing aircraft registered in the US.

The FAA said it received a report that a passenger was trapped in a bathroom during a flight because the door had a broken latch and they couldn't open the door.

Flight attendants also couldn't open the bifold door, so the pilots had to make an "unscheduled landing," the FAA said.

If a passenger is trapped in a bathroom, the FAA said they could be at risk of serious injury in an "otherwise survivable emergency event" such as severe turbulence or a medical emergency.

The agency identified door latches with four different part numbers that it said should be replaced.

The FAA estimated that could cost airlines and other operators up to $3.4 million β€” including labor and new latches worth up to $481 each. Some or all of the costs could be covered under warranty.

Boeing did not immediately respond to a request for comment.

The FAA's notice applies to certain 737-700, 737-800, 737-900, 737-900ER, 737 Max 8, and 737 Max 9 aircraft.

Boeing's website says that 3,461 of those planes have been delivered to US customers. The FAA's directive suggests that up to three-quarters of those planes have potentially problematic latches.

The FAA has given stakeholders until May 27 to respond to the proposed directive.

While the agency didn't provide details about the flight that prompted the notice, it wouldn't be the first time that bathroom issues have caused a diversion.

Last month, Air India passengers endured a nine-hour flight to nowhere. The New Delhi-bound plane turned back to Chicago because most of its toilets stopped working after a passenger tried to flush bags, rags, and clothes.

And in February 2024, eight of the nine bathrooms on a KLM flight from Amsterdam to Los Angeles stopped working β€”Β forcing the plane to make a U-turn over the Atlantic Ocean.

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The long-delayed Air Force One is one of the most expensive, complex planes in the world. Here's what makes the presidential plane unique.

By: Pete Syme
6 April 2025 at 02:27
Air Force One sits on the tarmac surrounded by black cars at Palm Beach International Airport on February 14, 2025 in West Palm Beach, Florida.
Air Force One at Palm Beach International Airport in February.

Joe Raedle/Getty Images

  • Boeing is building a new Air Force One, but it has been beset by delays.
  • Donald Trump has enlisted Elon Musk and DOGE to try to get it built faster.
  • Here's what makes the presidential jet so distinctive and complex.

Air Force One, perhaps the most iconic plane in the world, is entering a new phase.

Jets specifically designed for the president have existed since the Kennedy era. Today's iteration, based on a Boeing 747, entered service 35 years ago.

A new Air Force One has been in the works since 2015 but has been beset by problems that have delayed it for several years. Initially due to enter service in 2024, the plane won't be ready until 2027 at the earliest.

President Donald Trump'sΒ entry into the White House has added a new level of urgency to proceedings, with Trump especially eager to see the new planes come to fruition.

In his first term in the White House, he renegotiated the deal with Boeing and even created his own livery for the plane.

Boeing has lost more than $2 billion on the project. In a 2022 earnings call, then-CEO Dave Calhoun called it "a very unique set of risks that Boeing probably shouldn't have taken."

However, the planemaker's current CEO, Kelly Ortberg, is working with Elon Musk and DOGE to try to get it delivered as soon as possible.

This is the saga so far, and why building a new Air Force One is uniquely challenging.

Trump has keenly displayed his enthusiasm for a new Air Force One
Donald Trump raising a saber to cut a cake with a model of the new Air Force One plane on it. Melania Trump laughs as she watches on. Two members of the military stand behind them.
Donald Trump cut a cake with a model Air Force One at his inaugural ball.

PATRICK T. FALLON/AFP via Getty Images

In his first term, Trump showed off his design for the plane's colors to ABC News. At his inaugural ball, he cut a cake adorned with a model of the presidential jet.

In February, he toured a private Boeing 747
President Donald Trump's motorcade seen parked next to a Boeing 747 jumbo jet.
President Donald Trump's motorcade parked next to a Boeing 747 in Palm Beach, Florida.

ROBERTO SCHMIDT/AFP via Getty Images

At the time, Trump's press secretary said he was touring the plane to check out new hardware and tech, adding that the tour would help highlight "the project's failure to deliver a new Air Force One on time as promised."

The 747 Trump toured was owned by the Qatari government. Its tail number, P4-HBJ, features the initials of the country's former prime minister and one of its wealthiest royals, Hamad bin Jassim bin Jaber Al Thani.

Its interior is more lavish than Air Force One, with an entertainment room, double beds, and en-suite bathrooms.

Yves Pickardt, the project lead from the Parisian design house Alberto Pinto, told Altitudes Magazine in 2018: "Such a project is a dream come true that happens only once or twice in a designer's lifetime. In a way, this is a landmark in aviation history."

Boeing's CEO said Elon Musk and DOGE are working to speed up the delivery of the project
Tesla and SpaceX CEO Elon Musk holds a stuffed Air Force One toy after stepping off Marine One upon arrival with the US president on the South Lawn of the White House in Washington, DC, on February 19, 2025.
Elon Musk holding a stuffed Air Force One toy.

JIM WATSON/AFP via Getty Images)

"The president wants the airplane sooner, and so we're working with Elon and the team to figure what can we do to pull up the schedule of that aircraft," Ortberg told CNBC.

But Air Force One is a huge and complex aircraft with many features that distinguish it from a typical airliner
U.S. President Donald Trump arrives at a campaign rally aboard Air Force One on October 28, 2020 in Bullhead City, Arizona.
President Donald Trump arrived at a 2020 campaign rally on Air Force One.

Isaac Brekken/Getty Images

It may look like a Boeing 747, but it is actually a militarized version of the commercial jet called a VC-25A. The next version is known as the VC-25B.

Air Force One officially refers to any plane transporting the president. Sometimes, the president has flown on a Boeing C-32 β€”Β a military version of the 757 β€” that is more typically used as Air Force Two.

It's over 230 feet long with a wingspan of around 195 feet
A front view of Air Force One on May 8, 2014 in San Diego, California.
A front view of Air Force One.

Daniel Knighton/Getty Images

The next presidential jet is based on an even larger 747-8, which has a 224-foot wingspan and is 250 feet long. Its enormous size has even contributed to production delays.

In 2022, The Wall Street Journal reported that one difficulty during production included trying to shift one of the VC-25Bs onto jacks β€” but the weight "significantly exceeded" how much they were designed to hold.

Two empty mini bottles of tequila were also found on board one of the planes that year, sparking an investigation, per the Journal.

Its defense features make it especially useful in emergency situations
President George W. Bush talks on the telephone Tuesday, Sept. 11, 2001, as senior staff huddle in his office aboard Air Force One.
President George W. Bush and senior staff on board Air Force One on September 11, 2001.

Eric Draper, Courtesy of the George W. Bush Presidential Library/Getty Images

After US airspace was shut down in the wake of the 9/11 attacks, President George W. Bush and his staff spent eight hours on Air Force One.

The aircraft is armored and protected against the effects of a nuclear electromagnetic pulse
Air Force One with President Donald Trump aboard does a fly at the NASCAR Daytona 500 auto race at Daytona International Speedway, Sunday, Feb. 16, 2025, in Daytona Beach, Fla.
Air Force One flew above the NASCAR Daytona 500 in February.

AP Photo/Phelan M. Ebenhack

Air Force One has around 238 miles of wiring β€” twice that of a typical 747 β€”Β which is shielded to protect from an EMP.

Electronic countermeasure defense systems located at the top of the plane can also jam enemy radars.

Flares can also be released from the wings
The wing of Air Force One is seen as the plane passes Mount Rainier, Friday, May 10, 2024, en route to Seattle-Tacoma International Airport in SeaTac, Washington.
Mount Rainier seen from onboard Air Force One.

Cameron Smith/White House

These can be used to confuse heat-seeking missiles. There are also some defense capabilities that remain classified.

Air Force One can also refuel in midair β€” but that won't be a feature on the next version, seemingly due to financial constraints.

The president typically boards via the main deck, but Air Force One also has its own airstairs
A collage of Donald Trump boarding Air Force One at the upper door via a tall staircase, and Joe Biden and Jill Biden disembarking via the lower door.
Trump and Biden boarding and disembarking Air Force One.

T.J. Kirkpatrick-Pool/Getty Images; SAUL LOEB/AFP via Getty Images

The lower entrance has retractable stairs, which are convenient if rolling staircases aren't available upon landing or due to security concerns.

As NPR reported, President Joe Biden more frequently used the shorter stairs after tripping on a stage in June 2023.

Air Force One has 4,000 sq ft of interior space and room for 76 passengers plus 26 crew
Joe Biden on Air Force One
President Joe Biden holds a meeting on board Air Force One in 2021.

Adam Schultz/White House

As the plane transports VIPs, throughout much of the project, Boeing needed workers with high-level security clearance, adding to the complexity of building the aircraft.

In 2023, Pentagon officials were looking into why staff without such credentials were working on the jet β€” with the lapse involving some 250 workers, The Wall Street Journal reported.

Earlier this month, an official confirmed to The New York Times that security requirements had been reduced for some staff, after the newspaper reported Musk had been pushing for the change.

Unlike a typical airliner, there are four people on the flight deck
In this handout provided by The White House, President Barack Obama drops by the Air Force One cockpit during his flight to Pittsburgh, Pennsylvania on January 29, 2014
President Barack Obama (right) visits the cockpit.

Pete Souza/The White House via Getty Images

As well as a pilot and co-pilot, there is a a flight engineer and a navigator.

Flight engineers used to be common on airliners until technology developments in the early 1980s.

A crew of 26 people work on Air Force One
President Barack Obama celebrates the 20th anniversary of Air Force One with members of the crew during a flight from Milwaukee, Wisc., to Joint Base Andrews, Maryland, Sept. 6, 2010
Obama celebrated the 20th anniversary of Air Force One with crew members in 2010.

Pete Souza/White House

Their uniforms have "Air Force One" embroidered above the presidential seal.

The VC-25A has two galleys that can provide 100 meals in one sitting.

The president's quarters, at the front of the plane, have beds that fold out from couches
Former First Lady Betty Ford, (L), Steve Ford, Susann Ford Bales, and Mike Ford look at the window of the Presidential jet as it makes a low pass over the University of Michigan football field on January 2, 2007
The family of President Gerald Ford traveled to his funeral service on the presidential jet in 2007.

David Hume Kenerly/Getty Images

In 2018, Axios reported that Trump wants Air Force One to have a bigger bed. A 2021 National Geographic documentary said the designs included a larger TV, more seating, and a queen bed.

President George W. Bush told Runner's World in 2002 that he had a treadmill added to his room on the jet.

The president also has a flying Oval Office.
President Donald Trump speaks to reporters aboard Air Force One as he prepares to sign a proclamation declaring Feb. 9 Gulf of America Day as he travels from West Palm Beach, Fla. to New Orleans, Sunday, Feb. 9, 2025.
Trump signed a proclamation declaring Gulf of America Day on board Air Force One.

AP Photo/Ben Curtis

Opposite the desk is a large couch that wraps around the wall.

And this is Air Force One's situation room
President Joe Biden meets with traveling guests Ohio Senators Rob Portman (R), left, and Sherrod Brown (D) and staff members aboard Air Force One en route to Cincinnati/ Northern Kentucky International Airport in Hebron, Kentucky, Wednesday, January 4, 2023, for an infrastructure event.
President Joe Biden meets with senators and staff members in 2023.

Adam Schultz/White House

On the other side of this room, there's a TV that can be used for teleconferencing.

Then there are areas for staff or other passengers
President Barack Obama talks with members of Congress on Air Force One after speaking at the AMA conference in Chicago on June 15, 2009.
Obama speaks with members of Congress on board Air Force One in 2009.

Pete Souza/White House

The interiors of the new plane have also been a source of delays.

In 2021, Boeing filed a lawsuit against GDC Technics, a supplier for the new Air Force One, alleging it was roughly a year behind schedule in completing interior work.

GDC then filed a countersuit alleging the delays were due to Boeing's mismanagement and that payments were overdue.

The supplier then filed for Chapter 11 bankruptcy β€” before the two sides reached a settlement six months later.

Air Force One has 85 phones on board
In this handout provide by the White House, U.S. President Barack Obama's Staff including Senior Advisor David Axelrod (2nd-L) looks on as National Security Advisor Gen. James "Jim" Jones (L) talks on the phone, while Rahm Emanuel (3rd-L), and White House Press Secretary Robert Gibbs (6th-L) look on aboard Air Force One
Obama's staff making phone calls.

Pete Souza/White House via Getty Images

In the middle of this picture, you can see a beige phone and a white phone. The former is a secure line, while the latter is for unclassified use.

At the rear of Air Force One is the press area
President Donald Trump talks with reporters aboard Air Force One on a flight to Andrews Air Force Base, Md., Thursday, April 5, 2018.
President Donald Trump talks with reporters aboard Air Force One in 2018.

AP Photo/Evan Vucci

This is the only part of Air Force One that resembles a typical airliner's layout, albeit with leather seats.

Guests on Air Force One are sometimes given M&Ms as souvenirs
The new presidential M&M candies with the signature of US President Joe Biden is seen in Washington, DC on June 25, 2021.
Two cartons of presidential M&Ms with Biden's signature.

MANDEL NGAN/AFP via Getty Images

However, some passengers have taken their own souvenirs. Last year, the White House Correspondents' Association warned journalists to stop stealing items from the Air Force One.

The BBC reported that pillowcases, glasses, and gold-rimmed plates are among the things said to have vanished from Air Force One.

The next Air Force One has been delayed and won't be delivered before 2027 at the earliest
A rendering of the new Air Force One with its modernized blue livery, a Boeing 747-800 VC-25
A rendering of the next Air Force One.

Courtesy of the Air Force

It's also unclear what color the plane's livery will be.

The Air Force has said Trump's preferred blue, red, and white would add to delays because the dark blue would necessitate further tests due to added heat in some environments.

Biden then chose a light-blue color similar to previous presidential jets β€” but Trump has continued to champion his original design.

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The space race heats up: all the news on the latest rocket launches

By: Emma Roth
31 March 2025 at 15:39
A photo of SpaceX’s Falcon 9 rocket and Dragon spacecraft
A SpaceX Falcon 9 rocket lifts off from launch pad 30A at the Kennedy Space Center, carrying four astronauts to the Space Station. | Photo by Manuel Mazzanti/NurPhoto via Getty Images

The commercial space industry is booming, and it’s only expected to keep growing as more billionaire-led companies send rockets into the sky. Elon Musk’s SpaceX continues to dominate the space industry with dozens of launches each year, but it could soon have some serious competition with Jeff Bezos’ Blue Origin launching its rival New Glenn rocket for the first time in January.

Plenty more launches are to come, including another test of SpaceX’s massive Starship rocket, which exploded while in flight in March. Blue Origin is also set to send Katy Perry into space aboard its New Shepard as part of an all-woman mission on April 14th.

Then there’s Boeing, which NASA isn’t giving up on even after issues with Starliner resulted in astronauts having to extend their week-long stay at the Space Station to nine months. NASA and Boeing are aiming for another crewed flight later this year or in early 2026. The European Space Agency’s Ariane 6 rocket is also in the mix, which embarked on its first commercial mission in March.

Follow along below for all the latest updates on rocket launches.

I went inside the secret airplane rooms where flight attendants and pilots sleep. I'd much rather be a pilot.

27 March 2025 at 06:04
Business Insider's author spotted the differences between the rest areas for pilots and flight attendants on an Air New Zealand Boeing 777-300ER.
Business Insider's reporter spotted the differences between the rest areas for pilots and flight attendants on an Air New Zealand Boeing 777-300ER.

Monica Humphries/Business Insider

  • I toured the secret rooms where pilots and flight attendants rest on long-haul Air New Zealand flights.
  • The Boeing 777-300ER had a room with two beds for pilots and an eight-bed area for flight attendants.
  • Both rest areas were tight, but I noticed that pilots had more amenities than flight attendants.Β 

For years, I boarded long-haul flights without thinking twice about where pilots and flight attendants rest.

That's not the case for aircraft designers, who build secret areas on planes where these airline workers can take their mandated breaks.

I finally had the chance to see these hidden rooms when I boarded a long-haul flight on Air New Zealand's Boeing 777-300ER in 2021.

I explored two rooms β€” one where pilots rest and another for flight attendants β€” and noticed that the pilots had more amenities than the flight attendants. Take a look.Β 

Before takeoff on an Air New Zealand flight from New Zealand to Los Angeles, I toured the hidden rest areas for pilots and flight attendants.
Sarita Rami walks through the cabin on Air New Zealand's Boeing 777-300ER.
An Air New Zealand flight attendant walks through the cabin on Air New Zealand's Boeing 777-300ER.

Monica Humphries/Business Insider

Β 

These crew areas are designed for one purpose: rest. Both flight attendants and pilots receive breaks during long-haul flights to refuel and recharge.
Behind the entrance are eight beds for the flight attendants.
Behind the entrance are eight beds for the flight attendants.

Monica Humphries/Business Insider

An Air New Zealand rep told Business Insider that the breaks, which are legally mandated and typically about two hours long, happen in shifts. That means there are always pilots in the cockpit and flight attendants in the cabin.
The area has two leather seats and two beds.
The area has two leather seats and two beds.

Monica Humphries/Business Insider

As I explored the two rooms, which are typically off-limits to passengers, I spotted some drastic differences β€” from size to amenities.
Side-by-side images of the author in the rest areas for pilots and flight attendants on an Air New Zealand Boeing 777-300ER.
Side-by-side images of the reporter in the rest areas for pilots and flight attendants on an Air New Zealand Boeing 777-300ER.

Monica Humphries/Business Insider

The first clear difference I spotted was the location of each area. Both rest areas are above passengers' seats but on opposite sides of the plane.
Arrows point to the approximate location of the rest areas on the Boeing 777-300ER.
Arrows point to the approximate location of the rest areas on the Boeing 777-300ER.

Nicolas Economou/NurPhoto/Getty Images

The doors to each area were identical and designed to blend into the galleys. This helps protect from unwanted visitors, an Air New Zealand flight attendant explained.
The door to the pilot's rest area, left, and the flight attendants' rest area, left.
The door to the rest area for pilots, left, and the flight attendants' rest area, right.

Monica Humphries/Business Insider

Both rooms also required a passcode.
Sarita Rami unlocks the door to the secret plane bedrooms for flight attendants.
A flight attendant unlocks the door to the secret plane bedrooms for flight attendants.

Monica Humphries/Business Insider

Once the doors were unlocked, the entrances were also similar. A set of steep, small steps led up to each room.
Side-by-side images of the staircases in each rest area.
Side-by-side images of the staircases in each rest area, with the pilot area on the left and the one for flight attendants on the right.

Monica Humphries/Business Insider

Both sets of stairs were coated in a non-slip tread.
A view of the stairs the flight attendants take to get to their beds.
A view of the stairs the flight attendants take to get to their beds.

Monica Humphries/Business Insider

But this was where many of the similarities stopped. Once I entered the rooms, I noticed the pilots had more space than the flight attendants.
Wide-angle images of both the pilot and flight attendant rest areas.
Wide-angle images of both the pilot and flight attendant rest areas.

Monica Humphries/Business Insider

The rest area for pilots is designed for two people.
The area has two leather seats and two beds.
The area has two leather seats and two beds.

Monica Humphries/Business Insider

Eight flight attendants can fit in their designated rest area on the Boeing 777-300ERs.
A view of the two rows of beds.
A view of the two rows of beds.

Monica Humphries/Business Insider

The pilots also had multiple resting options. At the front of the room were two large leather recliners, and behind them were two beds.
A chair pilots can use to rest in.
A chair pilots use to rest in.

Monica Humphries/Business Insider

The flight attendants only had bunk-style beds in their room.
The author in the secret bedroom area for flight attendants.
The reporter in the secret bedroom area for flight attendants.

Monica Humphries/Business Insider

The pilots also had an entertainment option. A TV similar to the ones travelers had in business class was stationed near each recliner.
Each pilot has a TV in their secret rest area.
Each pilot has a TV in their secret rest area.

Monica Humphries/Business Insider

I didn't see any TVs in the space for flight attendants. Instead, the entrance to their room had a mirror and some storage.
The entrance of the flight attendant's rest area has a mirror and some storage.
The entrance of the flight attendants' rest area has a mirror and some storage.

Monica Humphries/Business Insider

Both flight attendants and pilots had privacy curtains and bedding for their beds.
Both the pilots and flight attendants had privacy curtains near their beds.
Both the pilots and flight attendants had privacy curtains near their beds.

Monica Humphries/Business Insider

Everyone was also able to control the light in their rest area …
Both bed nooks had individual lights.
Both bed nooks had individual lights.

Monica Humphries/Business Insider

… as well as the temperature.
Both hidden rest areas allow the pilots and flight attendants to control the temperature in the room.
Both hidden rest areas allow the pilots and flight attendants to control the temperature in the room.

Monica Humphries/Business Insider

In the bedroom areas, I noticed that pilots had more amenities. For instance, there were multiple cupholders and overhead storage near their beds.
The pilots have lighting.
Pilots had cupholders and storage in their bed areas.

Monica Humphries/Business Insider

The flight attendants had two smaller storage compartments and a mirror.
Each bed area has small storage compartments and a mirror.
Each bed area in the flight attendants' space had small storage compartments and a mirror.

Monica Humphries/Business Insider

Phones were stationed in both rooms so pilots and flight attendants could communicate with each other and their colleagues.
Both rooms had phones for emergencies.
Both rooms had phones for emergencies.

Monica Humphries/Business Insider

Each room also had a closet for uniforms. This way, the flight attendants' and pilots' clothing wouldn't get wrinkly while they slept.
The flight attendants and pilots both had access to storage spaces for their uniforms.
The flight attendants and pilots both had access to storage spaces for their uniforms.

Monica Humphries/Business Insider

Overall, it seemed to me that the pilots had more amenities. If I had to pick a place to rest, I'd much rather be a pilot with their comfy lounge chairs and TVs.
A view of the pilot's rest area.
A view of the rest area for pilots.

Monica Humphries/Business Insider

Ultimately, I was happier with the fewer responsibilities and the luxe amenities I had in my business-class seat below.
The author in her business-class seat.
The reporter in her business-class seat.

Monica Humphries/Business Insider

Read the original article on Business Insider

Boeing finally got some much-needed wins

27 March 2025 at 02:20
Boeing headquarters.
Boeing secured multibillion-dollar commercial and defense contracts, rallying optimism from analysts and investors.

JASON REDMOND/AFP via Getty Images

  • Boeing secured a $20 billion defense contract and billions in commercial aircraft orders.
  • The company is recovering from a tough 2024 with improved production and stock performance.
  • Analysts see Boeing's recent wins boosting cash flow, employee morale, and talent retention.

Boeing may finally be on an upward trajectory as it claws its way back into the good graces of investors and customers.

Since January, the manufacturer has been firing on all cylinders, securing a lucrative defense contract for the US's new F-47 fighter jet and scoring billions of dollars' worth of new passenger plane orders.

Deliveries are looking good, too. Analysts estimate that post-strike 737 production is at higher-than-expected levels in the first quarter so far.

The wins in two critical business segments are set to help bring in more cash, boost employee morale, and attract and retain engineering talent as the company works to right itself after a tough 2024.

Boeing's stock price has rallied about 16% over the past six months, nearly recovering from a March low, even as the broader market has pulled back amid tariff concerns and overall economic uncertainty. Shares remain down significantly from a 2023 high.

Analysts appear optimistic, with an average future price target of $196, or about 10% above Wednesday's closing price.

Securing more aircraft orders and ramping up production

On Wednesday, Korean Air finalized its order for 20 Boeing 777X planes. The news followed respective orders by Japan Airlines and Malaysia Airlines for 17 and up to 60 new 737 Max aircraft.

Both models are incredibly important for Boeing. The 777X is at least six years behind schedule β€” with its launch now expected in 2026 β€” and 737 Max output is capped at 38 a month.

A Boeing 777X readies for its flying display in front of crowds at the Farnborough Airshow, on 20th July 2022, at Farnborough, England
The 777X is Boeing's newest wide-body plane, with more than 500 orders to date. After a monthslong pause, flight testing resumed in January.

Richard Baker/Getty Images

Still, the deals add to Boeing's more than 6,000-strong backlog and signal customer confidence after aircraft deliveries slowed in 2024.

In a January earnings call, CEO Kelly Ortberg, who took over in August, said Boeing could achieve a 737 Max production rate of 42 a month by the end of the year, assuming it meets federally agreed-upon quality and safety metrics.

He also outlined a plan to close the 737 "shadow factory" β€” where already-built jets receive fixes to quality issues β€” which should further boost operational efficiency as workers can fully focus on the main assembly line.

Airline customers appear pleased with the progress. United Airlines CFO Brian West said at a February Barclays conference that he was confident in the Max delivery schedule.

Aircraft being assembled at the Boeing factory in June 2024.
So far this year, United has received over a dozen Boeing 737 Max planes. It has another 310 on order.

Jennifer Buchanan/Pool/AFP via Getty Images

"Boeing is doing a pretty miraculous job of turning around and becoming more reliable as a supplier," he said.

A lucrative new defense contract

President Donald Trump on Friday announced that Boeing secured a $20 billion contract to produce the sixth-generation US Air Force fighter jets, designated the F-47. The fleet will replace the F-22 Raptor.

Boeing beat out its rival manufacturer Lockheed Martin, which produces the US's fifth-generation F-35 fighter. Lockheed's stock has fallen about 6.5% since the Friday announcement.

JPMorgan analysts called the F-47 contract a "shot in the arm" for the future of Boeing's struggling defense business. The company has already suffered losses from its KC-46 tanker program and delayed Air Force One aircraft.

President Donald Trump awarded the F-47 contract to Boeing.
President Donald Trump awarded the F-47 contract to Boeing.

Photo by Annabelle Gordon / AFP

They said the financial benefits were "clearly meaningful but not massive in the context of a recovered Boeing," noting the F-47 could bolster Boeing's position in the aerospace industry and help attract talent.

Analysts at Melius said the new program was also expected to boost Boeing's employee morale and help the company retain "top engineering talent."

This could help lift the company out of a cultural slump created by the fallout from aircraft quality issues and a nearly eight-week labor strike. Ortberg has led the charge, outlining initiatives like putting executives on the factory floor.

"Although Kelly Ortberg has been at the helm for less than a year, we believe he is the right leader to turn Boeing around," Melius analysts said in a note to clients. "He has empowered employees to provide 'brutal' feedback on the company's leadership and culture, allowing him to implement necessary improvements."

Read the original article on Business Insider

See the competing F-47 stealth fighter jet concepts from Boeing, Lockheed, and more that led to the Air Force's NGAD

25 March 2025 at 16:14
An artist rendering of the US Air Force's sixth-generation fighter, the F-47, emerging from a hangar.
An artist rendering of the US Air Force's sixth-generation fighter, the F-47.

US Air Force

  • Boeing won the $20 billion contract to develop the Air Force's sixth-gen stealth fighter, the F-47.
  • The designation is a nod to the P-47 fighter, the USAF's founding year, and the 47th president.
  • See the competing NGAD fighter designs proposed by Boeing, Lockheed Martin, and Northrop Grumman.

Boeing will develop the US Air Force's highly anticipated sixth-generation stealth fighter, poised to replace the F-22 Raptor and play a leading role in the Air Force's future fleet.

The sixth-generation combat aircraft is a central component of the Air Force's secretive and costly Next Generation Air Dominance (NGAD), which seeks to fly the future fighter, designated the F-47, alongside autonomous drone wingmen known as Collaborative Combat Aircraft (CCA).

Though never officially confirmed, Boeing, Lockheed Martin, and Northrop Grumman competed for the $20 billion contract. Northrop Grumman dropped out of the running in 2023, leaving Boeing to battle it out with Lockheed Martin's dominance of the stealth fighter force.

Boeing's successful bid
An artist rendering shows an early version of Boeing's proposed design for the US Air Force's sixth-generation stealth fighter.
An artist rendering shows an early version of Boeing's proposed design for the US Air Force's sixth-generation stealth fighter.

Boeing

President Donald Trump announced on Friday that Boeing was selected to develop the future combat aircraft, which will be designated the F-47.

The designation is a deviation from typical naming conventions because it was previously used for the World War II-era fighter, the P-47.

Air Force Chief of Staff Gen. David Allvin said the designation is a nod to the P-47 escort fighter of World War II, as well as the Air Force's founding year in 1947 and the "pivotal" support of the 47th US President Donald Trump in developing the aircraft.

Winning the $20 billion NGAD contract will serve as a much-needed boost not only to its waning defense unit but also to recoup losses from the KC-46 tanker and new Air Force One aircraft.

Steve Parker, interim president, and chief executive of Boeing Defense, Space, and Security, said the company made "the most significant investment in the history of our defense business" after being tasked with designing, building, and delivering the sixth-generation fighter to the Air Force.

"We are ready to provide the most advanced and innovative NGAD aircraft needed to support the mission," Parker said in a statement.

The US Air Force's next-gen stealth plane
An early concept art rendering of the US Air Force's sixth-generation fighter.
An early concept art rendering of the US Air Force's sixth-generation fighter.

US Air Force

The pursuit for America's next-generation platforms began over a decade ago in the early 2010s.

The Defense Advanced Research Projects Agency launched a study in 2014 to explore strategies to maintain the US' edge in air superiority. It found that simply developing sixth-generation combat aircraft wouldn't be enough to ensure air superiority against US adversaries, instead urging a "family of systems" across multiple domains, including air, space, and cyberspace.

Air superiority is the condition where a nation's aircraft can fly at minimal risk from other aircraft and surface-to-air missiles. The US's longtime edge in achieving this is increasingly threatened by the proliferation of air defense missiles and China's aircraft build-up, including two types of stealth fighters.

Building upon DARPA's findings, the Air Force launched its own study, Air Superiority 2030, which laid the groundwork for its NGAD program, which envisioned creating a future hybrid fleet of crewed and uncrewed aerial systems.

As one of the Air Force's most sensitive and highly classified programs, few details were publicly known about the NGAD program.

In September 2020, Will Roper, then-Air Force acquisition chief, officially confirmed that the service had test-flown a prototype of its next-gen fighter. This was the first public acknowledgment of the top-secret program that he said he hoped would garner "greater credibility" on the program's progress.

By 2023, Boeing, Lockheed Martin, and Northrop Grumman appeared to be in the running to develop the NGAD platform, floating potential designs for it in promotional materials for their future projects β€” a common practice among US military aircraft manufacturers.

Northrop Grumman β€” the lead contractor for the B-2 Spirit and B-21 Raider stealth bombers β€” was also in the running to build the NGAD aircraft but dropped out of consideration as the prime developer in 2023, instead intending to support other bids as a supplier.

Early concept designs
A video promoting Boeing Phantom Works' upcoming projects appears to show a concept rendering of the next-generation platform.
A video promoting Boeing Phantom Works' upcoming projects appears to show a concept rendering of the next-generation platform.

Boeing Defense/X

Art renderings of the NGAD fighter show little more than the jet's sleek exterior and wings, revealing few details about the aircraft's final design.

But concept designs released by the three competing legacy combat aircraft contractors could give an idea of what the F-47 could look like when it takes to the skies.

In a promotional video released by Boeing Phantom Works in 2023, a brief rendering of a 3D model stealth plane showed assembling mid-flight to showcase the digital design capabilities to streamline the development of innovative aircraft.

The hypothetical stealth aircraft appears to feature a flat, tailless cranked wing design with two engines.

A fighter jet upset
An art rendering shows Lockheed Martin's proposed design for the US Air Force's sixth-generation stealth fighter
An art rendering shows Lockheed Martin's proposed design for the US Air Force's sixth-generation stealth fighter.

Lockheed Martin

Before Boeing was selected to build the F-47, Lockheed Martin had a monopoly on the Air Force's combat aircraft production, leading some to believe that it would be the prime contractor of the NGAD platform.

Following the fighter jet upset, Boeing's share price jumped 3% to $5.28 a share on Friday, adding $4 billion in market value. Meanwhile, Lockheed's stock dropped about 5.4% to $27.04 a share, an estimated $6 billion loss in market value.

"While disappointed with this outcome, we are confident we delivered a competitive solution," Lockheed Martin said in a statement.

Boeing has long been a major player in the military aerospace sector, including developing the F-15 and F/A-18 fighter jets and the KC-46 aerial tanker.

However, unlike competitors like Lockheed Martin and Northrop Grumman, which secured domestic contracts for the F-22 Raptor and B-2 Spirit stealth aircraft respectively, Boeing's long-term defense production largely relies on foreign acquisition and international defense sales.

Boeing and Lockheed previously faced off to develop the fifth-generation multirole fighter as part of the Pentagon's Joint Strike Fighter program. Lockheed's X-35 beat out Boeing's X-32, entering production as the F-35 Lightning II.

Lockheed's NGAD design
Lockheed Martin posted an aircraft outline that appeared to resemble an NGAD-like platform on its Instagram story.
Lockheed Martin posted an aircraft outline that appeared to resemble an NGAD-like platform on its Instagram story.

Lockheed Martin/Instagram

Lockheed's hint at its potential NGAD concept proposal was a lot more subtle. In 2023, Lockheed's Skunk Works division posted a black-and-white aircraft outline on its Instagram to celebrate its 80th anniversary.

Despite the lack of details in the cryptic post, the planform appears to resemble a tactical aircraft design, likely related to the Air Force's NGAD program.

Lockheed further pointed to its potential future participation in the NGAD by releasing another promotional video later that year, seemingly referring to the Air Force's pursuit of a hybrid fleet. The video features crewed and uncrewed systems flying in formation, with Lockheed's F-35 surrounded by futuristic UAVs.

Northrop Grumman withdraws NGAD bid
A 2021 video released by Northrop Grumman featured concept renderings of its future aircraft projects, including what appears to be a next-generation fighter jet.
A 2021 video released by Northrop Grumman featured concept renderings of its future aircraft projects, including what appears to be a next-generation fighter jet.

Northrop Grumman/YouTube

Northrop Grumman was also competing to be the prime contractor behind the Air Force's NGAD aircraft. The company hinted at its interest in participating in the NGAD program in a 2021 promotional video that appeared to include a tailless stealth fighter in a hangar with historic and futuristic aircraft.

But Northrop Grumman's bid to build the NGAD fighter was cut short after it pulled out of consideration in 2023, CEO Kathy Warden announced.

Warden added that the company was "responding to other bidders' request for proposal as the supplier, that's particularly in our mission system portfolio."

Navy's next-gen fighter up for grabs
An artist rendering shows an early version of Northrop Grumman's design for the US Air Force's sixth-generation fighter.
An artist rendering shows an early version of Northrop Grumman's design for the US Air Force's sixth-generation fighter.

Northrop Grumman

Northrop Grumman was selected to build the B-21 Raider, the Air Force's first sixth-generation stealth bomber, as part of the service's Long Range Strike Bomber program.

The company unveiled the stealth bomber in late 2022, and the aircraft took its maiden flight in November 2023.

Northrop Grumman is still in the running against Boeing to develop the Navy's next-generation fighter, the F/A-XX, which aims to replace the F/A-18E/F Super Hornet.

Steep ambitions, steep price tag
An artist rendering of the US Air Force's sixth-generation fighter, the F-47.
An artist rendering of the US Air Force's sixth-generation fighter, the F-47.

US Air Force

The NGAD's steep ambitions to revolutionize the USΒ air superiority missionΒ come with an equally steep price tag. In 2018, the Congressional Budget Office estimated that the NGAD airframe alone could cost up to $300 million each.

Then-Air Force Secretary Frank Kendall said in 2023 that he anticipated the unit cost to be "too expensive to be purchased in large numbers," revealing the service's plan to team each NGAD with two CCAs.

From 2022 to 2024, Congress allocated $5.1 billion to develop NGAD-related technologies, which included a "strategic pause" in the program due to high project costs. In 2025, the Biden administration requested $2.75 billion to build an NGAD platform, which could skyrocket to an estimated $5.72 billion by 2029.

'China is a threat today'
An F-22 flies over Davis-Monthan Air Force Base.
An F-22 flies over Davis-Monthan Air Force Base.

US Air Force photo by Airman 1st Class Paige Weldon

Kendall emphasized the pressing need for the NGAD "family of systems" amid evolving threats by US adversaries, especially after the Pentagon truncated the procurement of F-22 jets from 750 to 187 in 2009.

"NGAD will include attributes such as enhanced lethality and the ability to survive, persist, interoperate, and adapt in the air domain, all within highly contested operational environments," Kendall said in May 2023. "No one does this better than the US Air Force, but we will lose that edge if we don't move forward now."

The urgency is also spurred in part by China's increasingly sophisticated long-range air defense and electronic warfare systems as China-Taiwan tensions contribute to growing militarization in the Indo-Pacific.

The F-47 is expected to operate closely with two new uncrewed fighters, so-called "loyal wingmen" that are capable of flying missions too dangerous for a pilot in the cockpit.

In a potential war scenario with China, defense analysts argued the F-22's limited range and payload capacity would be ill-suited for the terrain, consisting of islands spread hundreds of miles apart, leaving the fleet vulnerable to attack during refueling efforts.

"China is not a future threat; China is a threat today," Kendall said during a 2024 keynote address.

"I am not saying war in the Pacific is imminent or inevitable. It is not," he added. "But I am saying that the likelihood is increasing and will continue to do so."

Read the original article on Business Insider

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