Boeing Wins Contract For New Air Force One

January 31, 2016

Boeing has won a contract to start preliminary work on two new Air Force One presidential aircraft based on the 747-8.

The US Air Force awarded Boeing an initial contract worth USD$25.8 million to reduce risk and lower the cost of the programme 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 USD$1.65 billion for two replacement aircraft.

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 US president. Air Force One is one of the most visible symbols of the United States.

The Air Force plans to modify the contract in coming years as the Air Force One programme moves into the engineering and design phase, and later, into production.

The Air Force now operates two VC-25s, specially configured Boeing 747-200Bs, which are nearing the end of their planned 30-year life.

In January, Air Force Secretary Deborah James said the Air Force One programme would use proven technologies and commercially certified equipment to keep it affordable.

The Air Force decision was widely expected since the only other suitable four-engine jet is the A380 built by Airbus in France.

The 747-8 is the only four-engine commercial jet Boeing makes, providing an extra margin of flight safety over twin-engine planes.

Boeing last week said it would cut production of the 747-8 in September and take a USD$569 million charge in the fourth quarter as it faces dwindling sales.

The four-engine jet is now mostly a cargo workhorse, eclipsed by more fuel-efficient twin-engine jets for passengers.

The double-decker plane entered service in 1970, undergoing a major overhaul in 2012, with new engines and a longer fuselage.

(Reuters)