Trump Says U.S. Should 'Cancel Order' for New Air Force One, Citing Costs -- 2nd Update
December 06 2016 - 10:20AM
Dow Jones News
By Damian Paletta and Joshua Jamerson
President-elect Donald Trump on Tuesday suggested the U.S.
government should cancel its order with Boeing Co. for a new
version of Air Force One, making the aircraft maker the latest
company to come under scrutiny by the incoming
commander-in-chief.
Mr. Trump tweeted that the order for new planes to shuttle the
U.S. president should be canceled because "costs are out of
control, more than $4 billion."
Representatives for Boeing and the Pentagon couldn't immediately
be reached for comment.
"The plane is totally out of control," Mr. Trump said in brief
remarks in the lobby of Trump Tower in New York City.
"I think its ridiculous," he said. "I think Boeing is doing a
little bit of a number. We want Boeing to make a lot of money but
not that much money."
The current Boeing aircraft used as Air Force One have been in
flight since the Reagan administration. The two heavily-modified
747-200 planes used by the president are due to reach the end of
their planned 30-year life in 2017. In January, Boeing secured a
contract from the Pentagon to start development work on the 747-8
jumbo jets that would replace the aging planes.
There are specific rules about how the U.S. negotiates with
federal contractors, but Boeing relies on U.S. government business
for sizable sales. In 2015, it was the U.S. government's second
biggest federal contractor, with $16.6 billion in obligations,
according to federal procurement data.
Boeing shares were 1.3% lower in early trading.
This is the first time since becoming president-elect that Mr.
Trump has singled out a particular government contractor in a
procurement deal. If the U.S. were to walk away from the Boeing
deal, the only other manufacturer that makes large planes capable
of such international flights is Airbus Group SE. Boeing and Airbus
frequently compete against each other for large contracts around
the world.
Last week, Mr. Trump appointed Jim McNerney, a former Boeing
chief executive, to be on a new board of executive advisers he
plans to meet with to discuss economic, regulatory, and labor
issues.
Mr. Trump has used Twitter extensively throughout his
presidential campaign and following the election. Tuesday's tweet
is his latest rebuke to a major U.S. company. Mr. Trump has also
used Twitter to hit Ford Motor Co. and United Technologies Corp.'s
Carrier unit for plans to move production overseas.
Write to Damian Paletta at damian.paletta@wsj.com and Joshua
Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
December 06, 2016 10:05 ET (15:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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