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Boeing CEO knocks planemaker’s deal with Trump on Air Force One -Breaking

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© Reuters. FILE PHOTO – Air Force One arrives at Rzeszow Jasionka Airport to meet President Joe Biden, who is visiting Poland amid Russia’s invasion. This was March 25, 2022. REUTERS/Kacper Pempel

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Eric M. Johnson and David Shepardson

WASHINGTON/SEATTLE, (Reuters) – Boeing (NYSE:) announced Wednesday that it had incurred $660 million in development costs for Air Force One. This was after its chief executive questioned Air Force One’s U.S. Presidential aircraft contract.

Donald Trump, the then-US President-Elect, obtained a pledge from Dennis Muilenburg (then Boeing CEO) that replacing Air Force One wouldn’t cost more than $4 billion. Trump previously urged his government to stop buying Boeing’s new Air Force One, claiming it was too costly and ridiculous.

Boeing recorded Wednesday a $660 million charge for the Air Force One program. This was “primarily due to higher supplier costs and higher costs in order to complete technical requirements. Schedule delays also played a role.” In April 2021, it incurred a $318 million charge on the Air Force One program. This was largely due to COVID-19 effects and performance problems at a major supplier.

Boeing CEO Dave Calhoun said that Air Force One represented a “very unique moment,” a very special negotiation, and an unusual set of risks Boeing should not have taken. But we’re where we are and will deliver amazing airplanes. It’s going to be a cost-effective decision.

Boeing 747-8s have been designed to provide an airborne White House, capable of flying in any security scenario, including nuclear war.

In 2018, Boeing was awarded a contract worth $3.9 billion for the delivery of two 747-8 planes. This aircraft will be in service around 2024. According to the Pentagon, these planes will not be delivered before 2026.

Boeing, however, is fighting to be certified as the largest version of the 737 MAX. This is just before a new safety standard for cockpit alerts comes into effect.

After the 2018 and 2019 fatal 737 MAX accidents, the Federal Aviation Administration introduced a deadline to make changes.

Calhoun stated that the intent of the legislation was not to prohibit derivative products from the MAX. So I think our chances of getting legislative relief are high. However, it doesn’t guarantee that we will get them. It’s not a problem if they don’t.

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