Trump reaches deal on new presidential planes

WASHINGTON— 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 “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 personal 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!”

The White House now says the original cost estimate was actually over $5 billion for two airplanes. Gidley said the agreement would save taxpayers more than $1.4 billion.

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

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-defense 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.