Tuesday, February 27, 2018

White House says Trump has worked out a $3.9B Air Force One deal with Boeing

President Donald Trump has reached a deal with Boeing to have the company supply a pair of 747s for Air Force One planes, the White House announced Tuesday according to Reuters.

The deal is worth $3.9 billion, according to the report.

“President Trump has reached an informal deal with Boeing on a fixed price contract for the new Air Force One Program,” Deputy Press Secretary Hogan Gidley told Reuters.

Reuters said Gidley said the contract would save taxpayers more than $1.4 billion. But Reuters said it could not independently confirm that figure.

The announcement comes a five days after a defense industry publication reported that Boeing is in final negotiations for a multibillion-dollar deal to modify two Boeing 747 jets into Air Force One aircraft.

Last year, Boeing won a $600 million contract to do early design work on the next generation of Air Force One aircraft. The Air Force bought two 747-8 jumbo jets that were being stored in the Mojave Desert after their original buyer, a Russian airline, went bankrupt and never took delivery.

(Greg Lamm - Puget Sound Business Journal)

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