Al Root

The president wants to dump Air Force One for a luxury jet gifted from Qatar's royal family.

Boeing investors, take note.

Today, two Boeing 747s -- used interchangeably -- become Air Force One when the president is onboard. The plane from Qatar, also a Boeing 747, would be retrofitted by a U.S. defense contractor and then flown as Air Force One while Donald Trump is in office , The Wall Street Journal reported on Sunday.

Boeing didn't immediately respond to a request for comment.

"Various heads are exploding...as more details are revealed on the stopgap Air Force One replacement," wrote Rob Stallard, of Vertical Research Partners, wrote on Monday.

Though the jet from Qatar was made by Boeing, an American company, there could be big problem if Trump accepts the gift.

"Quite how this gets around the U.S. constitutional ban on government officials receiving gifts from foreign heads of state (Article 1, Section 9) remains to be seen," added Stallard, pointing out not all conservatives are pleased with the deal.

It's odd. Why does the president need a new plane? And if he does, why can't Boeing just build one?

Boeing is trying, but has had its share of trouble delivering new Air Force One jets.

The two Air Force One 747s, dubbed VC-25A in contracting terms, entered service in the early 1990s -- more than 30 years ago.

The government has planned to replace the aircraft for years -- the talk started around 2010 -- because they are outdated and cost much more to maintain. About a decade ago, Boeing won the contract for two VC-25B jets nearly a decade ago, around 2016.

Boeing started talking about the program on earnings conference calls in spring 2020, during the COVID-19 pandemic. But things moved slowly.

The airplane maker and its suppliers lost skilled employees, and employee clearances became a problem in all the pandemic chaos.

Boeing did begin modifying 747s later in 2020, on schedule, but flight testing was delayed -- for years.

The government contract was for more than $2 billion a plane. Costs, however, built up. In 2022, Boeing recognized a $660 million loss to account for higher costs tied to suppliers, technical requirements, and delays.

Qatar's offer could push Boeing to move faster. And the deal could be a drag on the stock, though shares were up 0.8%, at $196.48, in midmorning trading Monday. The S&P 500 and Dow Jones Industrial Average were up 2.5% and 2.3%, respectively.

Most stocks were higher after the U.S. and China announced a pause on significant import tariffs. Lower trade tensions are a positive for Boeing, too.

Boeing is a large exporter from the U.S., and Chinese airlines declined to take deliveries of Boeing jets. Tariffs north of 100% simply made the planes too expensive.

Write to Al Root at allen.root@dowjones.com

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May 12, 2025 10:52 ET (14:52 GMT)

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