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Boeing lifts price tag for Air Force One contract - USAF official

Published 06/08/2021, 05:42 PM
Updated 06/08/2021, 11:40 PM
© Reuters. FILE PHOTO: Air Force One is seen on the tarmac after U.S. President Joe Biden returned from Pittsburgh to Joint Base Andrews, Maryland, U.S. March 31, 2021. REUTERS/Jonathan Ernst
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(Reuters) -Boeing Co has told the U.S. Air Force that the price of the next-generation presidential aircraft could rise, and sought more time to deliver it, citing difficulties with COVID-19 and a subcontractor, an Air Force official said on Tuesday.

Boeing (NYSE:BA) received a $3.9-billion contract in July 2018 to build two 747-8 aircraft for use as Air Force One, set for delivery by December 2024.

Boeing said it wanted extra time of about a year to deliver, however, Darlene Costello, the air force's acting assistant secretary for Acquisition, told a panel of the Armed Services Committee of the House of Representatives.

The planemaker also sent the Air Force a letter beginning the process to negotiate 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 U.S. Air Force."

© Reuters. FILE PHOTO: Air Force One is seen on the tarmac after U.S. President Joe Biden returned from Pittsburgh to Joint Base Andrews, Maryland, U.S. March 31, 2021. REUTERS/Jonathan Ernst

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

The Boeing 747-8s are designed to be like an airborne White House, able to fly in worst-case security scenarios such as nuclear war, and are modified with military avionics, advanced communications and a self-defense system.

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