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Boeing lifts price tag for Air Force One contract

Written by The Frontier Post

Monitoring Desk

Boeing Co (BA.N) has told the U.S. Air Force that the price of the next-generation presidential aircraft could rise, and sought more time to deliver it, citing difficulties with COVID-19 and a subcontractor, an Air Force official said on Tuesday.

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

Boeing said it wanted extra time of about a year to deliver, however, Darlene Costello, the air force’s acting assistant secretary for Acquisition, told a panel of the Armed Services Committee of the House of Representatives.

The planemaker also sent the Air Force a letter beginning the process to negotiate a price adjustment for the jets, Costello added.

A Boeing spokesperson told Reuters, “We continue to make steady progress on these programs and are working closely with the U.S. Air Force.”

In April, Boeing recorded a $318-million pre-tax charge related to Air Force One presidential aircraft because of a dispute with a supplier. read more

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.

Courtesy: Reuters

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