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US Reaches $3.9 Billion Informal Deal With Boeing For Air Force One

Air Force One is seen at Palm Beach International Airport from a motorcade carrying President Donald Trump as it travels to Trump International Golf Club in West Palm Beach Fla. Monday Feb. 19 2018

President Donald Trump reached an informal deal with Boeing Co. on a fixed-price contract for the new Air Force One program that will cost $3.9 billion.

A White House spokesperson said the agreement would save United States taxpayers more than $1.4bn.

According to the White House, the deal will save United States taxpayers more than $1.4 billion.

Gidley said in a subsequent email that the $5-billion figure was based on an older estimate from the U.S. Air Force "with a 50% assurance" and that, with new economic cost adjustments, the government cost figure would be right around or a little above $5 billion.

The big USA defense contractor said the deal includes work to develop and build two planes, including unique items such as a communications package, internal and external stairs, large galleys and other equipment.

Much of the costs for the presidential plane come from pricey and complex modifications required to turn Boeing's iconic hump-backed jets into the flying fortresses that ferry US presidents around the world.

Boeing said in a statement Tuesday, "President Trump negotiated a good deal on behalf of the American people".

Technically, "Air Force One" is a call sign for any aircraft carrying the U.S. president. The capacity to have a working Oval Office at all times, even if it means keeping the Air Force One for weeks in the air during national emergencies is considered too important to not have.

"Boeing has never seen the Air Force One program as a profit driver", the spokesperson said.

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

More than a year after Trump famously tweeted "Cancel Order" the President and Muilenburg hammered out the new deal during a White House meeting last Tuesday.

February 27-The White House has reached an "informal deal" with aerospace giant Boeing Co. on a contract for the next generation of presidential transport aircraft. The actual deal is pegged around $3.9 billion. "We want Boeing to make a lot of money, but not that much money", Trump said in December 2016. The Pentagon deferred to the White House.

Pentagon officials shaved a significant amount off the cost by opting to buy two 747-8 jets that had been built for a Russian airline but had to be put in mothballs when the company went bankrupt.

The White House credited Trump's negotiations with the aircraft manufacturer for the smaller bill in the final deal.

"The planes are just a minority cost of the program", Aboulafia said.