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Boeing States Possible Delay & Price Rise For Air Force One Contract

By John F. Heerdink, Jr.

Reportedly, Boeing Co (BA) has informed that there may be delays and that intend raise the price of the next-generation presidential aircraft due to COVID-19 delays and a subcontractor.  Boeing received a $3.9-billion contract in July 2018 to build two 747-8 aircraft for use as Air Force One, set for delivery by December 2024. 

The aerospace giant requested for extra time of about a year to deliver, informed Darlene Costello, the air force’s acting assistant secretary for Acquisition to a panel of the Armed Services Committee of the House of Representatives. The planemaker also sent the Air Force a letter beginning the process to negotiate a price adjustment for the jets, Costello added.

A Boeing spokesperson told Reuters, “We continue to make steady progress on these programs and are working closely with the U.S. Air Force.”

The 747-8s aircraft are equipped to operate in worst-case security scenarios like nuclear war and are modified with military avionics, advanced communications, and a self-defense system.

Dow 30 component Boeing (NYSE: BA) is the world’s largest aerospace company and leading manufacturer of commercial jetliners and defense, space, and security systems. To learn more about Boeing (BA) and to track its ongoing progress please visit the Vista Partners Boeing (BA) Coverage Page.

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(Read Original Story: Boeing lifts price tag for Air Force One contract - USAF official in Reuters)


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