BA Boeing Co

By Doug Cameron 

Boeing Co. Chief Executive Dennis Muilenburg said after a meeting with President-elect Donald Trump on Tuesday that they discussed simplifying the requirements for the new planes that would serve as Air Force One.

Mr. Trump has singled out the Air Force One replacement program and the F-35 combat jet made by Lockheed Martin Corp. for criticism over their cost, and won commitments from the CEOs of both companies to lower them.

Mr. Muilenburg told reporters after the meeting that he was pleased with the progress in discussions involving the Air Force One program, which involves converting two 747-8 passenger jets with sophisticated communication and defense systems.

Defense experts have said the planes' requirements are set by the White House and the Secret Service, not the company or the Air Force, which is running the program.

He also talked of using commercial best practices, though Boeing has made similar claims about converting other passenger jets for military use.

Boeing so far has received $170 million to start developing the two 747-8 jumbos, and was the sole bidder for the contract. The Pentagon has already said it would compete contracts involving some of the additional systems and upgrades for the jets.

"I think Mr. Trump is doing a great job engaging with business," said Mr. Muilenburg of the president-elect's tweets and remarks in speeches about what he views as the failings of some defense contracting.

Mr. Trump had also asked Boeing to price out souped-up F/A-18 jets that could substitute for some F-35s, though Pentagon officials have said the planes are complementary and cannot be swapped in for one another.

Mr. Muilenburg said they had discussed the capabilities of combat jets, but didn't discuss the F/A-18 specifically.

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

(END) Dow Jones Newswires

January 17, 2017 12:42 ET (17:42 GMT)

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