Says Congress Should Cancel The Order With Boeing, Citing Costs

President-elect Donald Trump dealt a blow to Boeing Tuesday, saying that the planned order of two Boeing 747s to replace the aging Air Force One aircraft is too expensive and should be cancelled.

In a Tweet, the President-elect said that the more than $4 billion price tag is too much. "Boeing is building a brand new 747 Air Force One for future presidents, but costs are out of control, more than $4 billion. Cancel order!" he Tweeted.

The current Boeing 747-200s operating as Air Force One have been in service since they were delivered to the government during the administration of President George H.W. Bush. They will reach the end of their expected 30-year lifespan in 2017, but that could be extended by a few years, according to a report from the Wall Street Journal. The Air Force has budgeted to have the new aircraft operational by 2023 or 20204.

The new aircraft would be heavily-modified Boeing 747-8 aircraft. "We are currently under contract for $170 million to help determine the capabilities of these complex military aircraft that serve the unique requirements of the President of the United States," Boeing said in a statement released Tuesday. "We look forward to working with the US Air Force on subsequent phases of the program allowing us to deliver the best planes for the President at the best value for the American taxpayer."

Trump said in remarks at Trump Tower in New York that the plane is "totally out of control. I think it’s ridiculous. 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."

This marks the first time since being elected that he has singled out a specific government contractor for criticism.

Loren Thompson of the Lexington Institute, a think tank part-funded by Boeing and other defense companies, told the paper that the $4 billion figure "is wrong." He said that the USAF would be forced to reexamine all if the requirements to be sure they are really necessary, and feels that Boeing will eventually reach a fixed-price agreement forcing the planemaker to pay for any cost overruns.

Boeing stocks fell 0.9 percent to $150.90 after Trump's Tweet, according to Business Insider.

(Image from file)

FMI: www.boeing.com