As with almost EVERTHING that involves Donald J. Trump?
Dealing with him gets ya screwed……
Boeing CEO Dave Calhoun told investors on Wednesday said that company executives should not have agreed to then-President Donald Trump’s terms for the Air Force One contract four years ago, citing $660 million in cost overruns in the first quarter of 2022.
Without naming the former president, Calhoun characterized the $3.9 billion contract signed in 2018 to develop two replacement aircraft for the White House as a “very unique negotiation” that Boeing probably should not have taken.
“But we are where we are, and we’re going to deliver great airplanes and we’re going to recognize the costs associated with it,” Calhoun said.
Trump got personally involved in the negotiations for the replacement aircraft. In February 2017, Trump said the Air Force was “close to signing a $4.2 billion deal” and that “we got that price down by over $1 billion.”
“President Trump negotiated a good deal on behalf of the American people,” Boeing said in a tweet after the contract was finalized.
Instead of negotiating a contract that protected the company from changes in supply costs and other factors, Boeing and Trump settled on a fixed-price contract that forces the company to carry the risk and not charge the government….
Of course Trump was actually a smart business man becuase Boeing was NOT able to contain the cost overruns in building the two Boeing 747’s that a Russian airline gave up….
One would hope the planes will be painted the traditional Air Force One colors NOT Trump’s personal preference ….
Image….Andrew Harnik/AP Photo