Sat, Dec 10, 2016
Some Analysts Say Pressure From The President-Elect Might Make A Difference
Pressure on Boeing from President-elect Donald Trump could force the planemaker to make changes in the new Air Force One aircraft on order from the U.S. Air Force in an effort to cut costs, as Trump has suggested.
On Tuesday morning, Trump sent out a Tweet saying that the $4 billion price tag for the new aircraft was "out of control," and that the order should be cancelled. He later talked with Boeing president Dennis Muilenburg, and told the media that the issues could be resolved.
CNBC reports that if Trump insists on cutting costs for the new plane, it could mean that some components considered critical by the Air Force could be subcontracted or left out altogether, which could make the planes less effective as a flying command post for the nation's chief executive.
Boeing said in a statement Tuesday after Trump's Tweet that it has some flexibility in the program.
Teal Group analyst Richard Aboulafia told CNBC that Trump may not yet understand "what a President needs and what a President does. It [Air Force One] has the ability to direct and manage war in wartime and survive a war. It is an incredibly complex and expensive aircraft."
The new Air Force One 747-8s are not yet being assembled. The current Air Force One aircraft are based on the 747-200 that were delivered in the early 1990s, and are reaching the end of their expected 30-year service life.
(Image from file)
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