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Trump says to cancel order of costly new Air Force One

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WASHINGTON: President-elect Donald Trump called Tuesday for the cancellation of a multi-billion dollar Boeing contract to build the next Air Force One, calling the ballooning costs “ridiculous.”


“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!” Trump tweeted.

Converting a pair of 747-8 jumbo jets to state-of-the-art luxury command centers by 2024 had been estimated to cost $3 billion when Boeing was picked for the job in January 2015.


The legendary light blue and white liveried jets — “United States of America” emblazoned on the fuselage and an American flag on the tail — are a powerful symbol of US might.

The current double-decker 747-200s, first ordered by Ronald Reagan and put into service in 1990, are getting old.

Earlier this year, the Air Force issued the first of a series of contracts for the project to build new ones. Ironically, it was a $25.7 million effort to look at ways to cut the costs of fielding the next presidential aircraft.

Instead, cost projections have apparently ballooned, prompting Trump’s outburst.

“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,” the president-elect told reporters at Trump Tower, his Manhattan headquarters.

He said the estimated $4 billion cost was “totally out of control” and “ridiculous.”

In a statement, Boeing did not directly address Trump’s comments or cost estimate.

“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,” it said.

“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,” Boeing added.

Prestige items like Air Force One have been targeted before because of spiraling costs.

In 2009, President Barack Obama halted a project to replace the Marine One helicopters that ferry the president.

ARYNEWS
 
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Probably a leader Pakistan needs, no offence but Pakistani here will agree to what Trump said. Trump, a soon to be Prez of 17 trillion dollar economy invites PM from a country with 250 billion economy and if the PM visits him, it will show the insensitivity of him.

Also soon Pakistani news will start praising Trump for this step, but Indian media will not give it a damn. :lol:
 
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Greedy US corporate are destroying USA.
Emperor Trump is unhappy with cost overruns, save the taxpayer, publicly shame corporations who are part of the military industrial complex. They'd be losing it with joy if comrade Bernie had won and done the same but Trump gets attacked as a fool from the left and anti free-market by the right, sad !

“I think Boeing is doing a little bit of a number.."

great optics, look at him drain that swamp.
 
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http://www.politico.com/story/2016/12/trump-boeing-ceo-dennis-muilenburg-232305

Trump says he spoke with Boeing CEO: 'We're going to work it out'

Donald Trump spoke Tuesday with Boeing CEO Dennis Muilenburg, the president-elect confirmed in a Wednesday morning interview, a conversation that followed his earlier accusation that the airplane manufacturer is fleecing American taxpayers on a contract to create the next generation of presidential aircraft.

The president-elect called Muilenburg “a very good man” but nonetheless said that Boeing’s project to build two new planes for the presidential fleet is too expensive. He pledged to bring down the cost of the planes, which are designated “Air Force One” when the president is aboard, or else scrap the project entirely.

“Well I think the planes are too expensive. I spoke to a very good man yesterday, the head of Boeing, a terrific guy, and we're going to work it out,” Trump told NBC’s “Today” on Wednesday morning. “You know, that’s what I’m here for. I’m going to negotiate prices. Planes are too expensive and we’re going to get the prices down and if we don’t get the prices down, we’re not going to order them. We’re going to stay with what we have.”

Trump wrote on Twitter Tuesday morning that costs on the project were “out of control” and said he would cancel the order as president. In brief remarks to reporters later Tuesday morning, Trump said “Boeing is doing a little bit of a number,” implying that the company was artificially inflating costs. He pegged the price of the program at $4 billion, higher than estimates from the Air Force and the Government Accountability Office.

Trump’s surprise decision to lash out at Boeing came just minutes after the publication of a Chicago Tribune story on Muilenburg in which the Boeing CEO was critical of Trump’s protectionist trade agenda. Muilenburg stated that Trump’s get-tough-with-China proposals could wind up hurting Boeing’s robust business relationship with the world’s most populous nation. He also urged Trump not to back away from the international trade deals he lambasted on the campaign trail, saying that "If we do not lead when it comes to writing these rules, our competitors will write them for us."

The president-elect said Wednesday morning that he had not seen the article and that his decision to call out Boeing was based only on the price of the presidential planes, nothing more. He said America’s largest airplane manufacturer stands to benefit as much as every other American company from his policies.

“My trade policies are going to be terrific. And by the way, we're lowering taxes in this country. We’re getting rid of 90 percent, maybe 85 percent of the regulations which are stifling business,” he said. “Boeing is going to be a tremendous beneficiary of that and maybe even mostly regulations. I mean, people are more happy about the regulations even though we're massively cutting taxes for businesses.”
 
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air-force-one-president.jpg
President-elect Donald Trump called Tuesday for the cancellation of a multi-billion dollar Boeing contract to build the next Air Force One, calling the ballooning costs “ridiculous.”

“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!” Trump tweeted.

Converting a pair of 747-8 jumbo jets to state-of-the-art luxury command centers by 2024 had been estimated to cost $3 billion when Boeing was picked for the job in January 2015.

The legendary light blue and white liveried jets — “United States of America” emblazoned on the fuselage and an American flag on the tail — are a powerful symbol of US might.

But the current double-decker 747-200s, first ordered by Ronald Reagan and put into service in 1990, are getting old.

Earlier this year, the Air Force issued the first of a series of contracts for the project to build new ones.

Ironically, it was a $25.7 million effort to look at ways to cut the costs of fielding the next presidential aircraft.

Instead, cost projections have apparently ballooned, prompting Trump’s outburst.

“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,” the president-elect told reporters at Trump Tower, his Manhattan headquarters.

He said the estimated $4 billion cost was “totally out of control” and “ridiculous.”

In a statement, Boeing did not directly address Trump’s comments or cost estimate.

“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,” it said.

“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,” Boeing added.

Prestige items like Air Force One have been targeted before because of spiraling costs.

In 2009, President Barack Obama halted a project to replace the Marine One helicopters that ferry the president.

Costs had soared to nearly $11.5 billion after the 28 helicopters were ordered in 2005.
 
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