Boeing lifts price tag for Air Force One contract -USAF official

Reuters2021-06-09

June 8 (Reuters) - Boeing Co has told the Air Force the price of the next-generation presidential aircraft could go up, and asked for more time to deliver the flying White House citing difficulties with COVID-19 and a subcontractor, an Air Force official said on Tuesday.

In July 2018, Boeing received a $3.9 billion contract to build two 747-8 aircraft for use as Air Force One, set to be delivered by December 2024.

Boeing informed the Air Force that it wanted about a year of extra time to deliver on the contract, Darlene Costello the acting assistant secretary of the Air Force for Acquisition told a U.S. House of Representatives Armed Services Committee panel.

Separately, Boeing submitted a letter to the Air Force beginning the process to negotiate a price adjustment for the jets, Costello said.

"At the moment are accessing the schedule that they have submitted," Costello said.

In April, Boeing recorded a $318-million pre-tax charge related to Air Force One presidential aircraft due to a spat with a supplier.

The Boeing 747-8s are designed to be like an airborne White House, able to fly in worst-case security scenarios such as nuclear war, and are modified with military avionics, advanced communications and a self-defense system.

Boeing referred questions to the Air Force.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

Leave a comment
14