Boeing Co Clinches $3.9 Billion Air Force One Deal

Boeing Co (NYSE:BA) has reached an agreement that will have is working on the next Air Force One planes.

Boeing Co Clinches $3.9 Billion Air Force One Deal

According to the White House, the deal will have the government paying $3.9 billion in the Air Force One deal. This will include two planes, the custom tailoring to the President’s needs and a hangar to keep them in.

The actual costs of the planes that will become the next Air Force One is only a small part of the $3.9 billion price tag. It’s actually making sure that the planes can meet the needs of the President that causes the price to skyrocket.

The two planes Boeing Co is providing for the Air Force One deal were actually originally being sold to Russia, but the deal never went through. As a result, the U.S. was able to grab them up for a cheaper price.

The $3.9 billion price for the Air Force One deal likely pleases President Donald Trump. He previously complained that the cost for a new Air Force One was exceeding $4 billion and was much too expensive. The White House says this new deal saves tax payers more than $1.4 billion, reports Reuters.

The new Air Force One deal will have the White House replacing older Air Force One models. These are Boeing VC-25 aircraft. This model has been used for Air Force One since President Ronald Reagan was in office. The new Air Force One planes will be Boeing 747-8.

BA stock was up 1% as of Tuesday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2018/02/boeing-co-takes-air-force-one-deal/.

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