Tuesday, December 6, 2016

Trump goes bargain hunting

Here we have the Swamper in Chief bitching about the price of Air Force One, and his numbers are not that far off, they are boondogles. Boeing counter offers, all in public. 
I love it, what better way to go government shopping than bitch out loud at the friggen price.
Forbes: The President-Elect criticized the cost of a pair of new 747s set to be built as replacements for the current Air Force One used by President Obama, but Trump's swipe at Boeing included no evidence to support the $4 billion cost estimate he cites.

Boeing issued the following statement in response to Trump:
We are currently under contract for $170 million to help determine the capabilities of these complex military aircraft that serve the unique requirements of the President of the United States. We look forward to working with the U.S. Air Force on subsequent phases of the program allowing us to deliver the best planes for the President at the best value for the American taxpayer.
The list price of a new 747-8 aircraft is about $379 million, though the extensive customization necessary for Air Force One certainly increases the price tag. Still, Trump's figure seems unaccountably high. Politico cites an Air Force earmark of $1.65 billion for two planes. Reuters references budget documents that peg the cost of the replacement program for presidential aircraft at $2.87 billion for fiscal years 2015 through 2021. Even given the potential for final costs to be above estimates, $4 billion would be sharply higher than either figure.
Boeing shares, which dropped about 1% in pre-market trading after Trump's tweet shortly before 9 a.m, recouped much of the dip to trade about half a point lower. The stock is above 151 a share, not far below the all-time high of $158.83 it reached in February. 

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