BOEING BAGS US$3.9 b AIR FORCE ONE DEAL
Two 747-8s planes will be delivered to US government by Dec 2024
CAPPING off a contentious contracting tussle with United States President Donald Trump, Boeing Co received a US$3.9 billion (RM15.6 billion) contract to continue development, modification and testing of two new aircraft to serve as Air Force One, according to people familiar with the decision.
The planes, Boeing 747-8s, would be delivered by December 2024. That would be Trump’s last full year in office if he wins a second term. Congressional committees were informed of the decision on Tuesday.
Trump reached an informal deal in late February with Chicago-based Boeing for the fixedprice contract that a White House spokesman said at the time would save taxpayers US$1.4 billion from an earlier projection for buying and outfitting two presidential jets.
But public estimates suggest the savings would be far less — perhaps a few hundred million dollars.
Trump shook the defence industry and put all large US companies with government contracts on notice when he began criticising the Air Force One contract more than a month before he took office in January last year.
On December 6 2016 he wrote on Twitter that “Boeing is building a brand new 747 Air Force One for future presidents, but costs are out of control, more than US$4 billion. Cancel order!”
That surprising statement was followed by talks with Boeing chief executive officer Dennis Muilenburg.
After a visit to Trump’s Mar-aLago resort in January, Muilenburg said: “We’re going to get it done for less than that, and we’re committed to working together to make sure that happens.”
Announcement of the contract came the same day Trump said in an interview with CBS that the new aircraft would be painted “red, white and blue, which I think is appropriate’’, instead of its traditional white, blue and light-blue colour scheme.