Trump says new Air Force One too costly: 'Cancel order!'

US plans to make fighter jets in India

NEW YORK - President-elect Donald Trump on Tuesday called for the US government to cancel a deal with aircraft manufacturer Boeing for development of a new Air Force One, the plane that serves the US president, because of high costs.

Trump, who takes office on Jan. 20, pledged during his campaign for the White House that he would put his skills as a businessman to work for taxpayers, and had griped about the cost of President Barack Obama's use of the presidential aircraft.

The Air Force signed deals with Boeing in January and July to design certain aspects of the new presidential aircraft, including its interior, electrical and power system, and maintenance systems.

The US Government Accountability Office estimated in March that the entire programme would cost about $3.2 billion from the 2010 through 2020 fiscal years, including $2 billion for research and development.

Trump cited different numbers without providing any evidence. The military has not yet awarded a contract to actually assemble the planes.

"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!" Trump tweeted Tuesday. Shortly after his tweet, he told reporters at Trump Tower: "“The plane is totally out of control. It’s going to be over $4 billion for Air Force One programme and I think it’s ridiculous. I think Boeing is doing a little bit of a number. We want Boeing to make a lot of money, but not that much money.”

Boeing said in a statement that its current deal for Air Force One development is worth $170 million.

"We look forward to working with the US Air Force on subsequent phases of the program allowing us to deliver the best planes for the president at the best value for the American taxpayer," Boeing said.

Meanwhile, US President Barack Obama's administration is working on a deal to build fighter jets in India, just as President-elect Donald Trump is vowing to keep jobs in America, The Washington Post reports. If the deal goes through, the Indian government would manufacture F-16 Fighting Falcons and F/A-18 Super Hornets to replace its aging fleet of Russian-made fighters. Both Lockheed Martin and Boeing - the American aerospace giants - have made proposals to the Indian government, the report said.

Lockheed Martin would move its entire production from Texas to India in the deal, which would make India the only producer of the F-16 in the world, it said, adding the US military is cutting its own use of the plane for more modern F-35s, while continuing to make it for sale to other countries.

The proposals have the strong backing of the Obama administration, which has sought a closer connection with the Indian military in recent years. Air Force Secretary Deborah Lee James said she was "optimistic" about the prospect of a deal after a visit to New Delhi in August, and Defence Secretary Ashton Carter is set to return to India next week, with procurement high atop the list of discussion topics.

But the election of a billionaire businessman focused on keeping jobs at home, rather than creating them overseas, has brought a measure of uncertainty to the talks.

"What will be the US policy posture now that the new president-elect is in the mix?" one unnamed high-level official at an American defence firm in India was quoted as saying.  "Is he going to continue the policy of engaging in India on co-production and co-development? All of those are unknown at this point."

Lockheed Martin and Boeing said the move would not result in a net loss of American jobs and would also increase employment in India.

Approximately 300 jobs from Texas would be transferred to the same plant's F-35 line while others could apply for jobs making the F-35, Lockheed officials told the Post. Some jobs might be lost by retirement or attrition.

"I see this as a great opportunity for all parties involved," Lockheed's Randy Howard said. "It doesn't take jobs away from the US, it extends existing jobs, and not just for Fort Worth but for many other companies around the US that build parts for the F-16." Nevertheless, workers in Fort Worth say they are worried about the future.

But District Lodge 776 International Association of Machinists and Aerospace Workers Earnest Boone said workers in Texas are concerned.

Trump's vow to keep jobs in America have many involved in the talks worried it might fall through.

"What will be the US policy posture now that the new president-elect is in the mix?" a high-level official at an American Defence firm in India told the Post. "Is he going to continue the policy of engaging in India on co-production and co-development? All of those are unknown at this point." Bigger worries, however, come from within India.

Pushan Das, a fellow at the Observer Research Foundation in Delhi, said the country has to decide whether "India wants to be seen as close to the United States and building US

fighter aircraft, or does it want to be more politically neutral and choose a partner like Sweden, given the fact that New Delhi needs to manage its relationship with Russia and China."India also is typically slow in Defence procurement as well, the Post notes, and has limited budgets, making it unlikely such a deal would be made soon.

 

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