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Government
Boeing to Offer Talks on Air Force One After Trump Tweets
2016-12-07
This is how a hard-nosed business person does it...
Boeing Co. executives told officials on President-elect Donald Trump’s transition team that the cost of a new version of Air Force One could be lowered if the government agrees to reduce its requirements for the plane, people familiar with the discussions said.

The company’s executives reached out to Trump’s staff after the Republican said on Twitter on Tuesday that plans for a new Air Force One should be canceled because of "ridiculous" costs. The missive put in Trump’s sights both a plane that is one of the most visible symbols of the American presidency and a firm that is the nation’s largest exporter.

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

The president-elect, who turned jobs and trade into defining issues of his campaign, tweeted about Boeing days after Chief Executive Officer Dennis Muilenburg called on him and Congress to ensure that U.S. companies have the tools to compete in a global economy.

“We are currently under contract for $170 million to help determine the capabilities of this complex military aircraft that serves the unique requirements of the President of the United States,” Boeing spokesman Todd Blecher said in an e-mail. “We look forward to working with the U.S. Air Force on subsequent phases of the program allowing us to deliver the best plane for the president at the best value for the American taxpayer.”

The Pentagon already is budgeting $3.2 billion for research and development, military construction and acquisition of two of the Air Force One planes through fiscal 2021, said Kevin Brancato, the lead government contracts analyst for Bloomberg Government. More money is anticipated in the two years after that. Boeing 747-8 planes average about $225 million each, he said, which means most of the expenses will go to outfitting the planes for presidential use.

The Air Force and Boeing are still conducting work to reduce the program’s technical risks before the company is awarded an advanced development contract, Captain Michael Hertzog, a spokesman for the service branch, said in an e-mail. Budgeted spending can be expected “to change as the program matures with the completion of the risk reduction activities,” he said.

“This is what an Air Force One costs,” Richard Aboulafia, an aerospace analyst at Teal Group, said of Trump’s tweet. “There have been no cost overruns. The ability to fly the president during a war is fundamentally expensive.”

The Boeing executives who contacted Trump officials suggested that the price of the new planes could be reduced if the Air Force and Secret Service revise their specifications for the aircraft, the people familiar with the discussions said. The company was not told in advance that Trump would tweet about the plane, the people said.

The Air Force expects the planes to have the range to fly between continents and to have comparable interiors to the current 747 aircraft, whose features include work and sleeping quarters for the president and first family. Beyond such amenities, the planes must be outfitted for highly advanced, secure communications and classified defensive capabilities that make them flying fortresses.

“This is madness,” Aboulafia said of Trump’s tweet. “I think about the complications, for example, if the president and his staff had to run the nation on 9/11 and afterwards without an Air Force One and my mind is kind of scrambled on that.”

The Pentagon is looking to replace its aging fleet of Boeing 747-200 aircraft, which were built in the 1980s and will reach the planned 30-year service life in 2017. Officials have said the next Air Force One 747-8 jets are estimated to begin operations in fiscal 2023.

There’s no clear alternative to Chicago-based Boeing to build a new Air Force One, especially not for a president who wants to buy U.S. products. The only other option for a four-engine plane the Air Force is seeking would come from Europe’s Airbus Group SE, which said in 2013 that it wouldn’t make a proposal.

The Air Force said last year that it was giving Boeing the contract without competition because its plane is the only one manufactured in the U.S. “that when fully missionized meets the necessary critically important capabilities” that a president needs. But the service also said it would encourage other companies to bid for the special equipment needed to convert the aircraft for presidential use.

“The plane is totally out of control,” Trump said in a brief appearance in the lobby of Trump Tower in New York on Tuesday. “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.”

Senator John McCain, the Arizona Republican who heads the Senate Armed Services Committee, said he counted himself among those who think there are too many bells and whistles on Air Force One. “I think it ought to be reviewed,” he told reporters at the Capitol. “I think it’s a legitimate concern.”

The dispute is reminiscent of the controversy over the Pentagon’s efforts to develop a replacement for the helicopters used to ferry the president and executive branch officials, known as Marine One when the president is on board. A program managed by Lockheed Martin Corp. to build as many as 28 helicopters was canceled in 2009 after about $3.1 billion was spent and the planned $6.1 billion project soared to a projected $13 billion. In 2009, President Barack Obama cited it as “an example of the procurement process gone amok.”
Wow, you mean what Trump is doing isn't exactly new?
In 2014, the Pentagon tried again, awarding an initial $1.24 billion contract to a team led by Sikorsky Aircraft. Since then, Lockheed acquired Sikorsky. So it’s back in charge of the helicopter project.

Trump transition spokesman Jason Miller said he couldn’t answer whether the president-elect or his top advisers had been in contact with Boeing or the Pentagon. Details about Trump’s goal, whether to scrap the plane or renegotiate the cost, will emerge after he’s sworn in next month, he said.

“This really speaks to the president-elect’s focus on keeping costs down across the board,” Miller told reporters on a conference call. The plane’s price “is a very big number.”
Posted by:Steve White

#18  The B-52 is a military grade plane, with thicker skin, designed to survive being shot at and all kind of nasty stuff

Shouldn't the President's plane also be.
Posted by: Procopius2k   2016-12-07 23:23  

#17  #13 ..."like the metal fatigue of B-52s?"

Actually comparing a 747 to a B-52 is like comparing an apple to a orange.

The 747 is a "lightweight" build for commercial purposes.

The B-52 is a military grade plane, with thicker skin, designed to survive being shot at and all kind of nasty stuff. It is not designed for comfort.

Two entirely different mission objectives so it's not fair to the 747 manufacturer to expect the same life span, Customers would not pay for the extra durability.
Posted by: Seeking cure for ignorance   2016-12-07 20:34  

#16  
Posted by: Skidmark   2016-12-07 20:19  

#15  Disclaimer, I work for Boeing. But we need a little truth on the subject. Boeing works the design, the bells and whistles, as specified in the SOW. Boeing does not dream up the equipment that must be integrated into the aircraft, nor does it outline the EMP, laser, weapons, and other survivability systems built into the design. The Pentagon defines the requirements. Boeing is under contract to design the aircraft, and to see if all that is required is possible. The cost of this is by design, and yes Boeing is not cheap, but it will be correct.
Second point, after I politely threw the pentagon under the bus. Just where do we say enough is enough with the systems in the aircraft when the president is on board? The new threats, high power lasers, EMP,EMP tracking missiles, Unmanned weapons, etc... All have been developed after the latest version of Air Force one hit the street. Which vulnerability do you want to allow? Times have changed since the doomsday bird of the 70's and the air force one requirements of today. These birds are going to be pricy. And finally the numbers are not correct. The average cost of a green 747-8 is over $300 million.
Posted by: 49 Pan   2016-12-07 19:06  

#14  Build a smaller cheaper plane and let the entourage and media fly coach.
Posted by: rjschwarz   2016-12-07 17:44  

#13  ...like the metal fatigue of B-52s?
Posted by: Procopius2k   2016-12-07 17:15  

#12  "How about rebuild and upgrade the existing planes?"

The problem is mainly metal fatigue.

Explanation given at link: http://www.flyingmag.com/when-airplanes-feel-fatigued
Posted by: Seeking cure for ignorance   2016-12-07 16:12  

#11  He just wants a better deal for his ride. What is wrong with that?
Posted by: newc   2016-12-07 16:02  

#10   Experimental is for Evon Musk and John Denver

pretty cold, TW, pretty cold
Posted by: Frank G   2016-12-07 16:00  

#9  My guess the Wagu beef menu item was what broke the bank...
Posted by: CrazyFool   2016-12-07 15:37  

#8  How about rebuild and upgrade the existing planes?
Posted by: gorb   2016-12-07 15:05  

#7  Pretty sure the Obama way was to ask for all the bells and whistles without any concern for the cost.

And many of the specs not yet invented as well, no doubt, just like Obamacare. Mr. Trump should demand the sturdiest of the current technology options -- it'll be better than what was available thirty years ago, which is currently acceptable -- and customize the thing using off-the-shelf components and whatever the NSA recommends for secure communications. The president doesn't need cutting edge, he needs something to reliably and comfortably get him and his team from here to there and back again, and something that will keep him and the team safely in the air during an emergency. Experimental is for Evon Musk and John Denver.
Posted by: trailing wife   2016-12-07 14:10  

#6  Pretty sure the Obama way was to ask for all the bells and whistles without any concern for the cost.

What does Obama care? He's not paying for it, and the press is going to treat Trump as though he's paying for it, so expect a lot more of this.
Posted by: Raj   2016-12-07 13:47  

#5  I think this is what Trump meant when he talked about walking away from a deal that is not to his liking. Then if the other side really wants to do business there will be further negotiations.

Pretty sure the Obama way was to ask for all the bells and whistles without any concern for the cost.
Posted by: Abu Uluque   2016-12-07 13:29  

#4  Bobby, because Trump actually wants to get shit done.

He is a businessman and blaming others doesn't get you jack.
Posted by: DarthVader   2016-12-07 13:13  

#3  Isn't Boeing based out of Chicago?
Posted by: Titus Splat4209   2016-12-07 13:12  

#2  So why didn't he just follow the Obama plan and blame his predecessor?
Posted by: Bobby   2016-12-07 12:32  

#1  Another lawn dart crashed of the Japan coast today. The "smart" alternative to the F-35...
Posted by: M. Murcek   2016-12-07 12:19  

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