Follows Boeing big’s criticism of him
the two new contracts, for preparations for the new high-tech jets, CNN reported.
But manufacturing has not yet begun, CNN reported, and the Air Force has not yet placed its formal order for the news planes, meaning that Trump could still technically refuse the larger order.
In a statement Tuesday, Boeing said it was “currently under contract for $170 million to help determine the capabilities of these complex military aircraft that serve the unique requirements of the President of the United States” — citing a number that roughly aligns with the initial and secondary contracts awarded.
“We look forward to working with the U.S. Air Force on subsequent phases of the program allowing us to deliver the best planes for the President at the best value for the American taxpayer,” the company said.
Boeing has previously said it plans to replace the two 747-200 jets that currently comprise the Air Force One fleet with two of its newer 747-8s, which are known to emit less greenhouse gas. The planes will be ready for delivery by 2024, the company has said.
Boeing shares closed Tuesday’s trading session up 0.1%.
Trump’s most recent financial disclosure form, from May, showed he owned between $50,001 and $100,000 worth of stock in Boeing. But Trump transition spokesman Jason Miller told reporters Tuesday that the President-elect — who in 2013 had tweeted that he’d scooped up shares of the company — had sold all of his stocks in June. Miller added that Trump would move forward with canceling the order after he is inaugurated and that the decision “really speaks to the President-elect’s focus on keeping costs down across the board.” Part of the reason the order’s costs may have grown so much is due to the fact that Boeing is one of only a handful of firms equipped to construct a four-engine aircraft that meets the size, weight and safety specifications necessary for Air Force One. The only other company capable of constructing such a jet would be French company Airbus — which isn’t an option.
John Haigh Sr., a former chief steward of Air Force One, told The Atlantic that’s due to the “highly classified decisions” involved in designing such a plane and the image crisis that could result from building the President’s plane abroad.
“We need the President’s plane to be made here,” Haigh told the magazine last year.
Canceling a government order of that magnitude, however, isn’t unprecedented.
President Obama canceled a contract in 2009 with Lockheed Martin to build more Marine One helicopters after the price tag reportedly grew to more than $13 billion.