Posted by on December 6, 2016 3:35 pm
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Categories: Air Force Air Force One Aircraft American people of German descent Aviation Boeing Boeing 747 Boeing Commercial Airplanes Business Business career of Donald Trump Climate change skepticism and denial Competition between Airbus and Boeing donald trump Donald Trump presidential campaign Dow 30 Economy Health Pentagon Political positions of Donald Trump President of the United States The Apprentice Twitter United Airlines US Air Force WWE Hall of Fame

Update: Boeing has issued a statement following President-Elect Trump’s tweet.

“We look forward to working with the US Air Force on subsequent phases of the program allowing us to deliver the best plane for the president at the best value for the American taxpayer,”  Boeing spokesman Todd Blecher says in e-mail.

“We are currently under contract for $170 million to help determine the capabilities of this complex military aircraft that serves the unique requirements of the President of the United States,” Blecher says

As a reminder, on Tuesday morning Trump called on Twitter for the cancellation of a Boeing contract to supply the Air Force One aircraft that has carried the American president around the world for decades, citing “out of control” costs. “Boeing is building a brand new 747 Air Force One for future presidents, but costs are out of control, more than $4 billion. Cancel order!” the president-elect tweeted on Tuesday.

Boeing is building two new versions of the 747 jumbo jet to replace the current fleet of aircraft, which have been in operation for more than three decades. Boeing declined to comment on the tweet. The contract is seen as vital to keeping open the production line of the 747, which first entered service in 1970.

The Trump campaign did not immediately respond to requests for explanation. But Mr Trump told reporters on Tuesday that the cost of the contract was “ridiculous.” “I think Boeing is doing a little bit of a number. We want Boeing to make money but not that much money.”

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Previously:

Politico reported that The Pentagon is looking to replace its aging fleet of Boeing 747-200 aircraft, which will reach the planned 30-year service life in 2017. Officials have said the next Air Force One jets are estimated to begin operations in fiscal 2023. The Air Force expects the planes to have the range to fly between continents and comparable interiors to the current 747, whose features include work and sleeping quarters for the president and first family.

But it seems President-Elect Trump has other ideas, and it now seems that “aerospace is the new pharma” when it comes to Twitter-based risk factors.

Indicatively, according to Politico, the Air Force said previously that it had earmarked $1.65 billion for two new presidential aircraft, which will be four-engine Boeing 747-8s.

In any case, algos reacted immediately as follows:

As a reminder, Boeing is 5.5% of The Dow, and with Ex-Im bank on the wires (defending its existence), we note that Boeing’s employee base is near the lowest since 1993:

And then, moments later, “negotiating” Boeing’s pricing strategy, Trump said that “we want Trump to make a lot of money, but not that much money”

What happens next? This sums things up nicely:

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