Well I guess we did not get everything out in our earlier publication about Trump. I don’t know if we could actually ever keep up with Trump and speculations about his presidency and the aviation industry. So we won’t try, but we figure we had to share the recent news about Trump, Boeing, and a trending tweet.
Boeing the American multinational company headquartered out of Chicago has been supplying the president of the united states with the Air Force One for decades. And has two of the planes scheduled for production for future presidents. The two planes that are in design are Boeing 747’s, and according to Trump far too expensive. In Trump’s own words, “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!”
This comment caught everyone off guard including Boeing, who has been in a constructive conversation with Trump since the post. There is not a conclusion on the matter yet, but Boeing is doing it’s best to secure the assumed contract it has been relying on for years with the White House.
Losing this deal could spell disaster for Boeing who has reportedly already flirted with the idea of eliminating production of the 747 due to a declining demand. The company has been down about 50% in sales of the Boeing 747 and desperately needs to see improved sales in order to continue production of this iconic plane. A loss of contract for the Air Force One could certainly be the blow that removes 747’s entirely from the market.
Although trump could be more tasteful with his disapproval of the price, perhaps he is sending a much needed message to manufacturers as a whole. The cost of the two Boeing 747’s is a fraction of the total $4 billion, and procurement of the two planes is only $282.2 million. The rest of the quoted price tag for the Air Force Ones will be for R&D. That is a staggering amount of money for R&D.
However the R&D necessary for producing a plane as capable as the Air Force One cannot be cheap. The plane is one of kind, with it’s ability to hold enough fuel to travel halfway across the globe and the ability to be refueled in flight, which allows the president to stay airborne indefinitely. The Air Force One is Additionally equipped with over a dozen televisions, 40+ plus telephones, radar deflection, flares to throw off heat seeking missiles, and a medical facility. So a handful of billions maybe does seem accurate. However Lockheed Martin and other military contractors have been caught in scandals of inflating cost that far exceed logic and are rooted in pure greed.
Perhaps this is a message to Boeing and other large manufactures that they need to be more competitively priced, and contracts are not going to be just handed out, and they will not be given a blank check for these contracts.
Although Trump stated that he wants Boeing to make a lot of money, even this seems outrageous for the Billionaire president.