Boeing has “submitted an intent letter” to request an adjustment to the price of the contract, Air Force official said.
Boeing has asked the US government to renegotiate the price for two new models of the presidential Air Force One plane, warning their delivery would likely come a year late, a Defense Department official said Tuesday.
The aerospace giant agreed in 2018 to supply two 747-8 planes by the end of 2024 for $3.9 billion — both ready to transport whoever occupies the White House at that time.
But a subcontractor went bankrupt and the coronavirus pandemic disrupted production.
The company has advised that it will probably be about 12 months late on the order, Air Force official Darlene Costello said during a congressional hearing.
The government is currently assessing whether to adjust the calendar, she said.
Boeing has “submitted an intent letter” to request an adjustment to the price of the contract, Costello said.
She was questioned by Democratic Representative Joe Courtney, who called the delay a “disappointment to all of us.”
“We thought this was maybe a program where the government actually got a good deal,” he said.
Former president Donald Trump had balked at the initial contract price for replacing the aircraft currently in use, which he considered much too high.
To offset the price, Boeing has suggested selling to the Air Force two 747-8s that were initially meant for the now-bankrupt Russian airline Transaero.
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