Trump, Boeing reach $3.9 billion deal for new Air Force One jets

Trump, Boeing reach $3.9 billion deal for new Air Force One jets

The current Boeing 747s used as Air Force One were ordered in the mid-1980s during the Reagan administration and were first flown in 1990 for President George H.W. Bush.

The pact helps set the stage for a modernized Air Force One program after Trump criticized its cost, threatened to cancel the order and later boasted of pushing Boeing to reduce the expense.

The planes never left USA soil, the Air Force said.

The actual costs of the planes that will become the next Air Force One is only a small part of the $3.9 billion price tag.

Boeing chief executive Dennis Muilenburg met multiple times with Trump to discuss the Air Force One contract according to the White House, most recently last week.

On Tuesday, Deputy Press Secretary Hogan Gidley announced that President Trump has approved a fixed price contract totaling $3.9 billion.

In the statement issued, the U.S. aerospace giant Boeing said that the company is proud to build the next generation of Air Force One.

A Boeing official said that Air Force One includes a "communications suite, internal and external stairs, large galleys and other equipment".

At the time, Mr. Trump complained that the price of the two planes was rising above $4 billion. The 747-8 and France's Airbus A380 were the only two four-engine plane designs with a wide enough body to accommodate the needs of a presidential carrier, according to the Air Force. "If Boeing had to take a loss on this to make the president happy, I think they would do it". No Air Force One till date has ever had to refuel mid-flight, and so the option seems redundant.

The President, who has repeatedly expressed his exasperation at his aging aircraft, wanted to meet face-to-face with Muilenburg to reach the deal, two officials said. It remains an open question whether the Air Force can complete its testing and modifications by then.

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 deal is worth $3.9 billion.



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