Jan 30, 2016
Boeing wins contract to build new Air Force One
The U.S. Air Force awarded Boeing an initial contract worth $25.8 million to reduce risk and lower the cost of the program by looking at the tradeoffs between the requirements and design of the new plane, according to the Pentagon's daily digest of arms deals.
Details about the total value of the new contract have not been released, but the Air Force has previously said that it had earmarked $1.65 billion for two replacement jets.
The Air Force first announced in January 2015 that Boeing's 747-8 would be used to replace the two current Air Force planes used to transport the U.S. president. Air Force One is one of the most visible symbols of the United States.
The Air Force now operates two VC-25s, specially configured Boeing 747-200Bs, which are nearing the end of their planned 30-year life.
The 747-8 is the only four-engine commercial jet Boeing makes, providing an extra margin of flight safety over the more standard twin-engine planes.
Boeing last week said it would cut production of the 747-8 in half in September and take a $569 million charge in the fourth quarter as it faces dwindling sales.