Trump Says U.S. Should 'Cancel Order' for New Air Force One, Citing Costs -- Update

By Damian Paletta and Joshua Jamerson 

President-elect Donald Trump on Tuesday suggested the U.S. government should cancel its order with Boeing Co. for a new version of Air Force One, making the aircraft maker the latest company to come under scrutiny by the incoming commander-in-chief.

Mr. Trump tweeted that the order for new planes to shuttle the U.S. president should be canceled because "costs are out of control, more than $4 billion."

Representatives for Boeing and the Pentagon couldn't immediately be reached for comment.

The current Boeing aircraft used as Air Force One have been in flight since the Reagan administration. The two heavily-modified 747-200 planes used by the president are due to reach the end of their planned 30-year life in 2017. In January, Boeing secured a contract from the Pentagon to start development work on the 747-8 jumbo jets that would replace the aging planes.

Boeing shares were 1.3% lower in early trading.

This is the first time since becoming president-elect that Mr. Trump has singled out a particular government contractor in a procurement deal. If the U.S. were to walk away from the Boeing deal, the only other manufacturer that makes large planes capable of such international flights is Airbus Group SE. Boeing and Airbus frequently compete against each other for large contracts around the world.

Last week, Mr. Trump appointed Jim McNerney, a former Boeing chief executive, to be on a new board of executive advisers he plans to meet with to discuss economic, regulatory, and labor issues.

Mr. Trump has used Twitter extensively throughout his presidential campaign and following the election. Tuesday's tweet is his latest rebuke to a major U.S. company. Mr. Trump has also used Twitter to hit Ford Motor Co. and United Technologies Corp.'s Carrier unit for plans to move production overseas.

Write to Damian Paletta at [e-mail] and Joshua Jamerson at [e-mail]

(END) Dow Jones Newswires

December 06, 2016 10:01 ET (15:01 GMT)

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