In the final hours of Kristi Noem’s tenure as Secretary of Homeland Security, the agency agreed to purchase five airplanes from a political donor’s company at prices that experts say were significantly above market value, documents reveal. The Department of Homeland Security (DHS) agreed to pay $108 million for a Boeing 737 transformed into a luxury private jet, as well as $45 million each for two aging Boeing 737 passenger planes previously used by commercial airlines. The transactions took place shortly before Noem’s departure from the agency in March 2024.
The luxury Boeing 737 featured amenities including a stand-up bar, two bedrooms, marble showers, and a table inlaid with manta ray skin. The plane had been originally listed for sale by its previous owners, brothers Frank and Lorenzo Fertitta, for under $90 million. Daedalus Aviation Corporation, the firm selling the aircraft to DHS, purchased it months earlier at a price also below $90 million, highlighting a substantial price increase in the government’s acquisition. Additionally, the two 17-year-old Boeing 737 passenger jets were bought from Daedalus for $45 million each, amounts aviation experts say exceed typical market values by tens of millions of dollars. Those experts indicated that similar aircraft usually trade for $15 million to $30 million depending on condition.
Daedalus Aviation is chaired by William Walters, who donated $10,000 in 2024 to Noem’s American Resolve political action committee, a group that explicitly supported her. Under Noem’s leadership, DHS awarded over $900 million in contracts to companies led by Walters, including Daedalus and Salus Worldwide Solutions, another of his firms used for immigration-related services and private charters. DHS has justified the extensive plane purchases as necessary for deportation flights, aiming to reduce reliance on chartered aircraft for transporting immigrants. However, the department has faced criticism over the cost and utilization of these planes, with most remaining idle due to a lack of trained crews, and one jet leased to the FBI.
President Donald Trump announced Noem’s dismissal on March 5, effective upon the Senate confirmation of her successor, Markwayne Mullin, who took office on March 24. Despite Mullin’s reported concerns about the high costs and potential financial penalties of canceling the airplane deals, which he discussed with White House Chief of Staff Susie Wiles, the agency finalized the purchases under his leadership. DHS has stated that the contract for the aircraft acquisition was completed after Noem’s departure, although documents show the deals were approved just hours before she left. Noem has declined to comment on the pricing specifics, maintaining that the acquisition process extended beyond her tenure.
The Department of Homeland Security has not released the full contracts detailing the aircraft purchases, citing national security concerns. The agency also declined to provide documentation explaining the rationale behind awarding Daedalus a no-bid contract, which allowed the company to acquire and resell planes to the government. Daedalus contends that the prices reflect a competitive market with limited supply and tight timing.
DHS officials have since indicated that four of the Boeing 737 passenger jets will not be used for deportations but rather to transport government officials and members of Congress on international trips. The future deployment of the luxury Boeing 737 for either diplomatic or immigration-related purposes remains unclear. Meanwhile, questions persist over the cost-effectiveness and oversight of these substantial expenditures amid ongoing scrutiny from lawmakers and aviation experts.