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Industrials

Boeing’s Chief to Meet Trump Over Air Force One Project

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Aimed to further discus Air Force One project, Boeing’s chief Dennis Muilburg is expected to meet Donald Trump today

According to sources familiar with the matter, Boeing Co’s (NYSE:BA) chief executive officer Dennis Muilenburg is expected to meet President-elect Donald Trump today to discuss future prospects of the Air Force One project. This would be the second time the company’s chief would meet with Trump, as earlier in December, a similar meeting was conducted.

Further details of the meeting agenda were not discussed. However, it is clear that Donald Trump might cut down the project cost and might renegotiate terms of the next-generation series of Air Force One aircraft project. Earlier in December, Trump criticized the project by saying that the costs are out of control, based on which the project should be cancelled.

Later on, the President-elect also conducted meeting with the company officials, in which Boeing reportedly affirmed him to drive the project cost down and that the cost area should not be out of control. Along with Boeing, Trump also criticized Lockheed Martin Corporation’s (NYSE:LMT) F-35 project, one of the US government’s costliest project, by saying that the company would have to bring the cost down.

As part of the meeting outcome and with the aim to win Trump confidence, Boeing’s chief vowed that the company would deliver a newer version of Air Force One with cost under $4 billion. However, analysts related to the industry are of the opinion that the company will now have a narrow window to keep Trump’s confidence as it will have to meet the delivery timelines to avoid any type of cost overruns.

Along with reducing the cost of the project, Mr. Mullinburg was also of the opinion that the company would work closely with the government to keep the progress clear with the officials and to make sure that they reduce the project costs. However, industry analysts fears that if the company is unable to do so, Trump might look at other aircraft manufacturers to build the next-generation Air Force One aircraft

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