Kelly Ortberg, the CEO of Boeing, has commended Elon Musk for his significant contributions to the Air Force One project, which has been facing multiple delays. Ortberg expressed his admiration for Musk's abilities while attending an investor conference organized by Barclays on Thursday.
Ortberg noted, "He's a brilliant guy, so he's able to pretty quickly ascertain the difference between technical requirements and things that we can move out of the way." This collaboration with Musk is seen as a crucial step in addressing the delays that have pushed the delivery of the new Air Force One planes from 2024 to at least 2027.
The partnership with Musk also involves working with the government efficiency commission known as DOGE. Ortberg stated, "He's helping us in a big way. So I'm embracing that, working with the DOGE team to help us improve the delivery."
In 2018, Boeing was awarded a $3.9 billion contract to deliver two completed Air Force One replacement aircraft during President Donald Trump's first term. However, the project has been fraught with challenges, leading to significant delays and financial losses exceeding $2 billion for Boeing.
Trump commented on the situation in a Fox News interview, expressing frustration over the project's pace by stating, "Now they're not building the plane fast enough. I mean, they're actually in default, Boeing."
Boeing's financial performance has been impacted by these delays and other challenges. In January, the company reported a net loss of $3.86 billion in the fourth quarter of 2024, with total losses of nearly $12 billion for the year. As a result, Boeing's shares fell by 2.83% at market close on Thursday and have decreased by more than 10% over the past 12 months.
Elon Musk has been vocal about his views on Boeing's management and progress. In December, he criticized Ortberg's predecessor, Dave Calhoun, and expressed confidence in Boeing's direction under Ortberg's leadership. Calhoun served as Boeing's CEO from January 2020 to July 2024.
Despite these challenges, Ortberg remains optimistic about the collaboration with Musk and the potential improvements in the Air Force One project timeline. However, both Boeing and Musk have not responded to requests for comment from Business Insider.
