Categories Earnings, LATEST

Boeing bags mammoth $4-billion Air Force One deal

If everything goes as planned, aviation behemoth Boeing will be providing two Air Force One aircraft to the US Government. The White House revealed that President Donald Trump signed a $3.9 billion contract with Boeing under the new Air Force One Program.

According to defense sources, the contract includes development and construction of the two planes, with unique features like communications package, internal and external stairs and large galleys. The deal also covers construction of a new hangar to house the aircraft.

The informal agreement will be codified in a formal contract, outlining the terms and conditions with details. Specialities of Air Force One include its ability to fly in the most adverse external conditions including warfare. Post procurement, the plane will be modified with military avionics and state-of-the-art communication systems.

Picture Courtesy: Wikimedia Commons

Earlier, the POTUS ordered to expunge the deal with Boeing citing the astronomical cost of building the new Air Force One planes — which, in a way, symbolizes the might of the White House. The market was quick to respond to the message, and Boeing’s stock price fell sharply.

The extensive negotiations that followed reportedly saved more than $1.4 billion for the government’s coffers. The USAF managed to secure a discount on the deal after Boeing’s original contract to supply the VC-25Bs, the military version of Boeing 747-8, to the Russian government fell apart.

After bagging the contract, the company tweeted, “Boeing is proud to build the next generation of Air Force One, providing American Presidents with a flying White House at outstanding value to taxpayers.”

Most Popular

Key highlights from Autodesk (ADSK) Q4 2021 earnings results

Autodesk, Inc. (NASDAQ: ADSK) today reported its fourth quarter financial results for the period ended January 31, 2021. Net income for the fourth quarter was $911.3 million, or $4.10 per

Infographic: Beyond Meat (BYND) reports wider Q4 loss; Revenue up 4%

Beyond Meat (NASDAQ: BYND), a specialist in plant-based meat substitutes, Thursday reported a wider loss for the fourth quarter, despite an increase in revenues. The numbers also missed the consensus

Virgin Galactic stock tanks on delayed test flight

Virgin Galactic (NYSE: SPCE) reported fourth-quarter 2020 financial results after the regular market hours on Thursday. The space tourism company reported zero revenue in the fourth quarter, compared to $529,000

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top