The White House cuts $3.9 billion deal with Boeing for 2 Air Force Ones

[seven]

The White House has confirmed that the administration has reached a deal with Boeing for two new Air Force One planes.

"President Trump has reached an informal deal with Boeing on a fixed price contract for the new Air Force One Program," a White House spokesman said. "Thanks to the President's negotiations, the contract will save the taxpayers more than $1.4 Billion."

The deal between the Trump administration and Boeing is expected to total $3.9 billion. The Pentagon deferred to the White House.

Some of the savings may have come after Boeing failed to secure a deal with its original buyer: Russia.

The U.S. Air Force told CNBC that the two planes were originally supposed to be sold to Russia. When that deal fell through, the Air Force acquired the aircraft at a slightly discounted price.

https://www.cnbc.com/2018/02/27/the...eing-for-two-new-air-force-ones-nbc-news.html

 

[seven]

Oh but wait! Meanwhile Back in 2016!

“Boeing is building a brand new 747 Air Force One for future presidents, but costs are out of control, more than $4 billion,” Trump declared. “Cancel order!”

 

[Starman]

Oh but wait! Meanwhile Back in 2016!

“Boeing is building a brand new 747 Air Force One for future presidents, but costs are out of control, more than $4 billion,” Trump declared. “Cancel order!”

Then someone explained to him how Airbus birds are built.

 

[GURPS]

so what

 

[awpitt]

I find it hard to believe that Russia was going to actually buy Boeing aircraft.

 

[Merlin99]

Oh but wait! Meanwhile Back in 2016!

“Boeing is building a brand new 747 Air Force One for future presidents, but costs are out of control, more than $4 billion,” Trump declared. “Cancel order!”

So are you saying 2 Air Force ones for 3.9B is a worse deal than a single 4B dollar one?

 

[Tech]

I thought or read somewhere last year that the oringinal deal included three aircraft and a new facility at Andrews. But I could be wrong.

 

[Chris0nllyn]

So are you saying 2 Air Force ones for 3.9B is a worse deal than a single 4B dollar one?

The $4 billion was for 2 planes.

Looking at the AF Budget Justification for the PAR, the cost to build the 2 planes is $2.87 billion between 2015 and 2021. Estimates between an addition $858 million to $1 billion of overruns is expected also. Putting the total for two planes around $3.87 billion.
http://www.i2insights.com/library/d...017-defense_budget/3600F/3600F-0401319F-R.pdf

Anyone who thought Boeing or any other govt. contractor will suddenly charge less or that Trump would be able to secure a better deal is smoking crack.

 

[Gilligan]

Anyone who thought Boeing or any other govt. contractor will suddenly charge less or that Trump would be able to secure a better deal is smoking crack.

True that.

 

[BOP]

So are you saying 2 Air Force ones for 3.9B is a worse deal than a single 4B dollar one?

Maff is hard!

 

[Merlin99]

Maff is hard!

Apparently it was 2 of each, so the savings was only a hundred million.

 

[StadEMS3]

I thought or read somewhere last year that the oringinal deal included three aircraft and a new facility at Andrews. But I could be wrong.

Yes they wanted 3 jets as one is always being rotated out for heavy maintenance/upgrades in TX. With one gone there is no 747 back-up standing by ready to go at a moments notice. There will be a new hanger built for them as the current hanger will not fit 747-8's.

 

[Chris0nllyn]

According to Air Force Magazine, President Donald Trump's new Air Force One fleet will cost a total of $5.2 billion, up from the 2016 estimate of $3.2 billion.

https://www.businessinsider.com/air-force-one-pentagon-52-billion-2019-8

 

[transporter]

WTF is an "informal deal"???

 

[This_person]

WTF is an "informal deal"???

Think "Kyoto" or "Paris Accord" or "Iran deal" - those are all informal deals.

 

[BOP]

So are you saying 2 Air Force ones for 3.9B is a worse deal than a single 4B dollar one?

Shhhh....4 is a bigger number than 3.9, seven is almost sure..

 

[BernieP]

The $4 billion was for 2 planes.

Looking at the AF Budget Justification for the PAR, the cost to build the 2 planes is $2.87 billion between 2015 and 2021. Estimates between an addition $858 million to $1 billion of overruns is expected also. Putting the total for two planes around $3.87 billion.
http://www.i2insights.com/library/d...017-defense_budget/3600F/3600F-0401319F-R.pdf

Anyone who thought Boeing or any other govt. contractor will suddenly charge less or that Trump would be able to secure a better deal is smoking crack.

The question is, did was the previous deal a FFP contract as this one is reported to be?
BTW, people can look in the Air Farce budget all they want and you won't find much on the aircraft.

 

[LightRoasted]

If I may ...

The increase is, mostly, due to inflation, the expansion of the money supply. And what the expected inflation will be in the future when production begins and when the planes are finally delivered. The resent reduction in the interest rates points to further coming expansion of the money supply, aka, inflation.