BA Boeing Co

By Doug Cameron 

Boeing Co. has secured a contract from the Pentagon to start development work on the 747-8 jumbo jets that would replace planes used as the presidential aircraft Air Force One from early next decade.

The U.S. Air Force last year said Boeing would build the planes to replace the two aging 747 jets now earmarked for use by the Commander In Chief. Boeing was the sole bidder, and the initial $25.6 million contract awarded on Friday is to map out how the program can meet cost and performance criteria.

The Pentagon hasn't disclosed the expected cost of the two new planes, which experts said would include sophisticated communications equipment and other upgrades such as antimissile devices. Earlier budget estimates put the cost at more than $1.6 billion.

While Boeing was the sole bidder to build the jet, the Pentagon plans to seek bids from Boeing and other contractors to maintain and support the planes.

Boeing last week announced plans to slow production of the 747-8 model to just one a month, reflecting sluggish demand for the passenger and cargo models. It has orders for just 20 planes.

Write to Doug Cameron at doug.cameron@wsj.com

(END) Dow Jones Newswires

January 29, 2016 18:16 ET (23:16 GMT)

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