PE Trump met with Boeing CEO Dennis Muilenburg yesterday. His goal was to negotiate the costs of the Air Force One program down. After the meeting Muilengurg pledged to keep the costs under $4 billion. Sounds like a great win for Trump and the American tax payer right? The press thinks so but is it really? No.
Boeing pledged to do exactly what they were going to do before Trump got involved. Before Trump’s December 6th tweet, the budget for Air Force One was $2.9 billion over the next 5 years and $3.7 billion for the complete project.
In short Trump got nothing but a photo op with the Boeing CEO and to take credit for work done by the Obama Administration.
Maybe that was the point all along.
2 thoughts on “Trump Gets Nothing From Boeing”
Anyone who deals with Gov’t contracting knows that $3.7B today will be $4.8B later with cost overrides down the road, so this is Trump drawing a line in the sand and Boeing is on the hook to deliver at that price. Victories come in many ways, this certainly is that.
I have and cost over runs just don’t happen without government approval. Again this is was a press event only.
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