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Donald Trump’s Air Force One deal ‘severely impacted’ Boeing, says plane-maker CEO | World | News

Boeing CEO Dave Calhoun instructed buyers on Wednesday that firm executives shouldn’t have agreed to then-President Donald Trump’s phrases for the Air Force One contract 4 years in the past, citing $660 million (£526 million) in value overruns within the first quarter of 2022. Without naming the previous president, Mr Calhoun characterised the $3.9 billion (£3.1 billion) contract signed in 2018 to develop two alternative plane for the White House as a “very unique negotiation” that Boeing most likely shouldn’t have taken.

He stated: “We took some risks not knowing that Covid would arrive and not knowing that inflation would take hold like it has – and both of those have impacted us fairly severely.”

Boeing – a significant authorities and defence contractor – confronted “a very unique negotiation, a very unique set of risks that Boeing probably shouldn’t have taken” throughout the Air Force One talks, Mr Calhoun stated.

“But we are where we are, and we’re going to deliver great airplanes.”

The planes are designed to be an airborne White House, in a position to fly in worst-case safety eventualities, corresponding to nuclear conflict, and are modified with navy avionics, superior communications and a self-defence system.

The planes had been speculated to be delivered by 2024 however are delayed, based on studies. Boeing disclosed it has misplaced $660 million this quarter on the programme.

Trump received personally concerned within the negotiations for the alternative plane.
In February 2017, Trump stated the Air Force was “close to signing a $4.2 billion (£3.35 billion) deal” and that “we got that price down by over $1 billion (£797.5 million)”.

Boeing stated in a tweet after the contract was finalised: “President Trump negotiated a good deal on behalf of the American people.”

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The planes had been speculated to be delivered by 2024 however are delayed, based on studies. Boeing disclosed it has misplaced $660 million this quarter on the programme.



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