Boeing CEO Dennis Muilenburg — whose company is under contract with the US Air Force to develop and manufacture the next presidential aircraft fleet — said the price will be less than a near-$4 billion estimate.
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After meeting with Trump, Boeing CEO says Air Force One will cost less than $4 billion (LMT, BA)
WASHINGTON, DC — US President-elect Donald Trump on Wednesday met the CEOs of defense contracting giants Boeing and Lockheed Martin, whose programs he has criticized in recent weeks.
Boeing CEO Dennis Muilenburg and Lockheed Martin CEO Marillyn Hewson.
"We're going to get it done for less than that, and we're committed to working together to make sure that happens," Muilenburg said after meeting
"I was able to give the president-elect my personal commitment on behalf of the Boeing Company. This is a business that's important to us. We work on Air Force One because it's important to our country and we're going to make sure that he gets the best capability and that it's done affordably."
Trump described the cost for Boeing's Air Force contract to develop the next presidential fleet as "out of control" in a December 6 tweet.
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"The $4 billion is a theoretical estimate of the life of the program, which is approximately 30 years," a Department of Defense spokesman told Business Insider.
Considering the US Air Force contract with Boeing is in very early stages, it is entirely possible for that figure to be adjusted, the spokesman added.
Trump also met with Lockheed Martin CEO Marillyn Hewson on Wednesday.
On December 12, Trump said the cost for Lockheed Martin's fifth-generation stealth F-35 Lightning II jet was also "out of control."
The message sent Lockheed Martin's stock down from $251 at the opening bell to $245.50, before it rebounded to a little more than $253 a share.
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The F-35, valued at an acquisition cost of $379 billion, has become one of the most challenged programs in the history of the Department of Defense. It has experienced setbacks that include faulty ejection seats, software delays, and helmet-display issues.
On Monday, the F-35 Joint Program Office released the finalized price for the most recent production contract for America's fifth generation stealth fighter. The ninth Low Rate Initial Production (LRIP-9) contract for 57 F-35 jets was valued at $6.1 billion.
In LRIP-9, the price of the Air Force and Marine Corps' variants saw a reduction of $5.9 million and $2.4 million respectively, the Navy model saw an increase of $3.2 million.
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