(Reuters) – Boeing Co has told the Air Force the price of the next-generation presidential aircraft could go up, and asked for more time to deliver the flying White House citing difficulties with COVID-19 and a subcontractor, an Air Force official said on Tuesday.
In July 2018, Boeing received a $3.9 billion contract to build two 747-8 aircraft for use as Air Force One, set to be delivered by December 2024.
Boeing informed the Air Force that it wanted about a year of extra time to deliver on the contract, Darlene Costello the acting assistant secretary of the Air Force for Acquisition told a U.S. House of Representatives Armed Services Committee panel.
Separately, Boeing submitted a letter to the Air Force beginning the process to negotiate a price adjustment for the jets, Costello said.
“At the moment are accessing the schedule that they have submitted,” Costello said.
In April, Boeing recorded a $318-million pre-tax charge related to Air Force One presidential aircraft due to a spat with a supplier.
The Boeing 747-8s are designed to be like an airborne White House, able to fly in worst-case security scenarios such as nuclear war, and are modified with military avionics, advanced communications and a self-defense system.
Boeing referred questions to the Air Force.
(Reporting by Mike Stone in Washington; Editing by David Gregorio)
