Trump Zeroes $4bn New Air Force One

[cronus]

http://www.reuters.com/article/us-usa-t ... SKBN13V1S5

Trump urges cancellation of order for new Boeing Air Force One

"Boeing is building a brand new 747 Air Force One for future presidents, but costs are out of control, more than $4 billion. Cancel order!" Trump said in a morning Twitter message.

It was not clear what his source of information was for the cost. The budgeted costs for the Air Force One replacement program are $2.87 billion for the fiscal years 2015 through 2021, according to budget documents.

Shortly after his Tweet, Trump made a surprise appearance in Trump Tower in New York before a group of reporters to amplify his comments.

"The plane is totally out of control. I think it's ridiculous. I think Boeing is doing a little bit of a number. We want Boeing to make a lot of money but not that much money," he said.

A spokesman for Boeing said the company had no immediate comment. Boeing shares dipped after Trump's tweet and were down 0.7 percent in morning trading. Shares of several other major defense contractors were also lower.

(continued)

[Tero]

Orders 60 ships instead!

[Brian Peacock]

What are they making out of? Diamonds mined on Mars or something?

[L'Emmerdeur]

The "basic" 747-8 costs nearly $380 million. Remember that there are always two planes that can serve as Air Force One. So that's in the neighborhood of $760 million. Given the inevitably extensive modifications and upgrades in the contract for these two planes, and a nice fat profit for Boeing, it's not hard to imagine that price going up to around $3 billion (short scale billion). As the story from Reuters points out, though not in so many words, it seems likely that Trump pulled the $4 billion number straight out of his ass.

[L'Emmerdeur]

Further reading has shown that I was likely wrong about a couple of things above. The cost could run to $4 billion, and apparently Boeing didn't make any profit on the two previous presidential jets (source).

[Tero]

Yeah but Bowing makes money selling to foreign airlinesn! We must make planes only meant for Merikan people! And t-shirts! And Nikes! No more imports or exports!

[Tero]

Boeing...

[mistermack]

What Trump doesn't get, is something that the rest of the world fully understands.
The US government subsidises Boeing in various underhand ways, to try to kill off foreign competition in the large jet market, without falling foul of international trading rules.

That's why they give out over-generous government contracts in the military sphere, to keep the books of Boeing healthy, while undercutting foreign manufacturers in the big jet market.

The Europeans sussed that years ago, and replied in kind via Airbus.

[L'Emmerdeur]

Since it hasn't been noted in this thread.-- It seems probable that Trump was just doing his usual with the tweet about the Air Force One planes: Puerile reactive lashing out when he thinks somebody has offended him in some way. "Did Boeing Get Out Of Line?"

[JimC]

Tweeting as an activity suits people with little intellectual depth and an obsession with their own ego.

A perfect fit for Trump.

[pErvinalia]

He really is a man child, isn't he?

[Scot Dutchy]

He really is a man child, isn't he?

That is a compliment.