Trump Strikes "Informal" Deal For New Air Force One, Saving Taxpayers $1.4 Billion

President Donald Trump has struck a handshake agreement with Boeing for a fixed price contract for the new Air Force One, Fox News reports.

Boeing

As we noted in the tweets above, the deal is worth $3.9 billion. Officials say it represents $1.4 billion in savings from estimates of over $5 billion for two airplanes and related costs. In late 2016, the White House was under the impression that the program would've cost $4 billion - but officials now say the full cost estimate prior to the deal was over $5 billion.

 

 

 

 

"President Trump has reached an informal deal with Boeing on a fixed price contract for the new Air Force One Program. Thanks to the president’s negotiations, the contract will save the taxpayers more than $1.4 billion," Deputy Press Secretary Hogan Gidley said Tuesday.

The president has been working to negotiate a new Air Force One deal ever since the presidential transition period in late 2016, when he famously complained on Twitter about the cost of the project and threatened to "cancel [the] order."

Trump later accused Boeing of "doing a little bit of a number. We want Boeing to make a lot of money, but not that much money," he said.

The planes are meant to replace the aging Reagan-era aircraft currently in use. It was reported last week that Trump was close to a deal with Boeing.