Boeing raises price of Air Force One contract – USAF official

Air Force One is seen on the tarmac following the return of US President Joe Biden from Pittsburgh to Joint Base Andrews, Maryland, United States, March 31, 2021. REUTERS / Jonathan Ernst

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June 8 (Reuters) – Boeing Co (BA.N) told the U.S. Air Force that the price of the next-generation presidential plane could rise, and asked for more time to deliver it, citing difficulties with COVID -19 and a subcontractor, an Air Force official said on Tuesday.

Boeing was awarded a $ 3.9 billion contract in July 2018 to build two 747-8 planes for use as Air Force One, scheduled for delivery by December 2024.

Boeing has said it wants around a year more time to deliver, however Darlene Costello, the Air Force’s acting deputy secretary for the acquisition, told a services commission panel. armed forces of the House of Representatives.

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The aircraft manufacturer also sent the Air Force a letter beginning the process of negotiating a price adjustment for the jets, Costello added.

A Boeing spokesperson told Reuters: “We continue to make steady progress on these programs and are working closely with the US Air Force.”

In April, Boeing recorded a pre-tax charge of $ 318 million related to the presidential aircraft Air Force One due to a dispute with a supplier. Read more

The Boeing 747-8 are designed to resemble an airborne White House, capable of flying in worst security scenarios such as nuclear war, and are modified with military avionics, advanced communications, and a self-defense system.

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Reporting by Mike Stone in Washington; Editing by David Gregorio

Our Standards: Thomson Reuters Trust Principles.

Eleanor C. William