Boeing Wants to Renegotiate Air Force One Deal Made at a Low Price During Trump Administration

[Photo by Reuters-Yonhap News]

[Asia Economy Reporter Park Byung-hee] Major foreign media reported on the 8th (local time) that Boeing wants to renegotiate the delivery contract for the U.S. presidential aircraft Air Force One, which was signed at a low price with the White House during President Donald Trump's administration in 2018.

In 2018, Boeing signed a contract to deliver two Air Force One planes to the White House by 2024. The original contract amount Boeing wanted was $5 billion, but President Trump threatened on Twitter to cancel the contract, calling it an outrageously expensive amount. Eventually, Boeing signed the contract with the White House for $3.9 billion, but it has recently been confirmed that Boeing sent a letter requesting renegotiation to the White House.

Danil Costello, the U.S. Air Force Deputy Assistant Secretary in charge of acquisitions, appeared before the House on the same day and stated that the White House is negotiating with Boeing. Costello said that after receiving a letter from Boeing expressing the desire for an appropriate contract price increase, the White House began negotiations with Boeing.

Costello also mentioned that Boeing wants to delay the delivery of Air Force One by one year due to reasons such as COVID-19. There have also been disruptions in the Air Force One production process. GDC Technics, responsible for the Air Force One interior, filed for bankruptcy in April. Boeing terminated the contract with GDC, claiming that GDC did not fulfill contractual obligations, and filed a $318 million damages lawsuit against GDC. GDC responded with a countersuit against Boeing, complicating the situation.

Costello stated that the White House is currently coordinating the negotiation schedule with Boeing and expects to update Congress on the progress of negotiations between Boeing and the White House in September.

This content was produced with the assistance of AI translation services.