The agreement will save taxpayers $1.4 billion from the original estimate for buying and outfitting two presidential aircraft, White House spokesman Hogan Gidley said Tuesday.
According to the White House, the deal will save U.S. taxpayers more than $1.4 billion. He previously complained that the cost for a new Air Force One was exceeding $4 billion and was much too expensive.
The White House announced a deal with Boeing for the two Air Force One planes the company was developing for the US government.
"President Trump negotiated a good deal on behalf of the American people", Boeing said in a tweet.
"The current Air Force One fleet faces capability gaps, rising maintenance costs, and parts obsolescence as it has reached the end of its planned 30-year life cycle", a White House official said.
"They're elevating defense-program theater to an art form", Richard Aboulafia, an aerospace analyst at Teal Group, said of the highly unusual direct talks between the president and the second-largest US defense contractor on a high-profile military program. But Trump himself had declared that the initial cost was about $4 billion, a figure that defense analysts agreed was about right.
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It's unclear how Trump managed to negotiate the price of the planes up to $5 billion so that he could then save Americans $1.4 billion.
February 27-The White House has reached an "informal deal" with aerospace giant Boeing Co. on a contract for the next generation of presidential transport aircraft. The same 2018 budget document, not adjusted for inflation, showed the price at US$3.6b.
"Boeing learned first, of all the defense contractors, that you have to flatter Trump, you have to give him credit for any number of things, no matter how fictitious", Aboulafia was quoted as saying.
So just what kind of deal did the president and CEO shake hands on? "There's no evidence of a discount", said Aboulafia, vice president of analysis at Teal Group. After the attacks of September 11, President George W. Bush was whisked away on Air Force One, and he responded to the crisis from there.
The new Air Force One deal will have the White House replacing older Air Force One models.
The 747-8 and France's Airbus A380 were the only two four-engine plane designs with a wide enough body to accommodate the needs of a presidential carrier, according to the Air Force.