Boeing Responds on Air Force One Contract
By Czhelle Moone | Dec 09, 2016 02:42 AM EST
Boeing has finally responded to President-elect Donald Trump after the latter criticized the former regarding the cost of a new Air Force One plane, which was allegedly expected to reach $4 billion.
It was then revealed by the aircraft manufacturer that its current contract with the Airforce is $170 million and not $4 billion which the US President-elect earlier mentioned in his tweeter account.
Due to the recent issue, Boeing's shares fell just under 1 percent minutes after Mr. Trump's tweet - down from $152.16 to $149.75 per share. However, the company recovered later on those losses and ended the session about flat, according to Independent UK.
"We are currently under contract for $170m to help determine the capabilities of these complex military aircraft that serves the unique requirements of the President of the United States," Boeing said in a statement.
Boeing is looking forward to working with the US Air Force on succeeding stages of the program to deliver the best planes for the president at the best value. In January, it has won a contract to start working on a new government aircraft fleet.
An aerospace analyst at Teal Group told Bloomberg, Richard Aboulafia, told Bloomberg: "This is what an Air Force One costs," "There have been no cost overruns. The ability to fly the president during a war is fundamentally expensive."
Mr. Trump's remarks do not appear to reflect arrangements made between the aircraft manufacturer, Boeing, and the US Air Force, according to Press Secretary Josh Earnest. He also added that Americans would anticipate that future presidents would benefit from advancements to Air Force One.
For the fiscal years 2015 through 2021, the budgeted costs for Air Force One replacement program are $2.87 billion as specified the budget documents. The production contract has not yet been awarded to Boeing as of this time.
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