Donald Trump and Twitter were made for each other. That’s good news and bad news depending on who you ask. But today it’s most certainly bad news for Boeing Co (NYSE:BA) — the target of Trump’s latest Twitter snipe.
On Twitter, Trump alluded to canceling the order of a new 747 Air Force One jet, which the president-elect claims costs more than $4 billion.
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!
— Donald J. Trump (@realDonaldTrump) December 6, 2016
Trump elaborated on his tweet while in the lobby of Trump Tower in New York:
“Well the plane is totally out of control, it’s going to be over $4 billion for Air Force One program. I think it’s ridiculous, 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.”
The deal with Boeing was announced by the Pentagon last January, as the current aircrafts have been in use since the Reagan administration. The initial contract totaled some $26 million just for research, with $127.3 million awarded in July toward the development the necessary specifications for “the next-generation aircraft.”
Trump’s remarks, though, aren’t dissimilar to remarks made by President Barack Obama in 2009, where Obama mused to lawmakers about costs that had “gone amok,” referring to Lockheed Martin Corporation’s (NYSE:LMT) proposed presidential helicopter fleet.
According to Obama, “The helicopter I have now seems perfectly adequate to me.” And Trump, a man known for not letting his toys gather dust in some storage lot, isn’t exactly hurting for air transport, as he has several planes and helicopters that he has used for decades at his disposal.
BA stock opened down more than a percent on the news, from an adjusted close of $152.16 to Tuesday’s low of $149.75.
Boeing has yet to respond to the president-elect’s remarks.
As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities.