Times Colonist

Trump, Boeing reach a deal on new presidenti­al planes

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WASHINGTON — U.S. President Donald Trump has reached an informal deal with Boeing to provide the next generation of presidenti­al aircraft, the White House says.

Deputy press secretary Hogan Gidley said Tuesday that the president negotiated a $3.9-billion US “fixed-price contract” for the new planes, known as Air Force One when the president is on board. It follows years of negotiatio­ns between Boeing and the U.S. Air Force — and Trump’s interventi­on since his election.

In December 2016, Trump tweeted that costs for the program were “out of control, more than $4 billion.” He added, “Cancel order!”

Boeing chief executive Dennis Muilenburg met multiple times with Trump to discuss the Air Force One contract.

Boeing, in a statement, said it is “proud to build the next generation of Air Force One, providing American presidents with a flying White House at outstandin­g value to taxpayers.”

Gidley said the agreement would save taxpayers more than $1.4 billion, but it remains unclear how that number was calculated.

The White House said the cost estimate had risen to over $5 billion for the two airplanes, but did not provide any documentat­ion to illustrate that claim.

The agreement includes the two 747-800 aircraft and the cost of modifying the commercial planes with the equipment needed to support the president, including external stair, large galleys and a secure communicat­ions suite. Other modificati­ons include electrical power upgrades and adding a medical facility, an executive space and a self-defence system.

As an example of the unusually high costs associated with Air Force One, the Pentagon announced in December that Boeing was given a $23.7-million contract to design, make and install refrigerat­ors for the president’s planes.

The White House said the deal would put Boeing on the hook for cost overruns. In 2011, Boeing agreed to a $4.9-billion, fixedprice contract with the Air Force for a refuelling tanker, the KC-46. Through late last year, cost overruns had reached about $2.9 billion in pretax costs.

Trump has been pushing to get the planes airborne by 2021, in time for a possible second term as president.

 ??  ?? U.S. President Donald Trump and American aerospace giant Boeing have reached a $3.9-billion US deal to develop and build two new Air Force One planes.
U.S. President Donald Trump and American aerospace giant Boeing have reached a $3.9-billion US deal to develop and build two new Air Force One planes.

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