http://www.defenseone.com/business/2017/08/russian-air-force
-one-boeing-trump-747/139872/
Trump Wanted a Cheaper Air Force One. So the USAF Is Buying a Bankrupt
Russian Firm’s Undelivered 747s

[image: Description: Take-Off Runway 26 with Pdt Donald Trump on board.]

*President Donald Trump said the projected cost *of new Air Force One
aircraft *was too high*
<http://www.defenseone.com/business/2016/12/trumps-air-force-one-tweet-rattles-defense-industry/133691/>,
so the U.S. Air Force found a way to lower it: by buying a pair of Boeing
747 jetliners abandoned by a bankrupt Russian airline.

Air Force officials are now finalizing a contract with Boeing for the two
planes, according to three defense officials with knowledge of the deal.
The Pentagon could publicly announce the deal as soon as this week.

“We’re working through the final stages of coordination to purchase two
commercial 747-8 aircraft and expect to award a contract soon,” Air Force
spokeswoman Ann Stefanek said in a statement.

The Air Force is not expected to disclose the specific value of the
contract, but officials said that the military is getting a good deal on
the planes. Boeing lists the average sticker price of a 747-8 as *$386.8
million* <http://www.boeing.com/company/about-bca/#/prices>; the actual
amount paid by airlines and other customers varies with quantities,
configurations, and so forth.

“We’re still working toward a deal to provide two 747-8s to the Air Force —
this deal is focused on providing a great value for the Air Force and the
best price for the taxpayer,” Boeing spokeswoman Caroline Hutcheson said in
a statement.

The 747s that will be transformed for Presidential transport were
originally ordered in 2013 by *Transaero* <https://www.transaero.ru/>,
which was Russia’s second-largest airline until it *went bankrupt*
<https://www.rt.com/business/317219-transaero-files-for-bankruptcy/> in
2015. Boeing built two of the four jets in the order, but the airline never
took ownership of them.

Typically, an airline makes a 1 percent down payment when it orders a
plane, then pays the balance in installments. Transaero did not fulfill its
scheduled payments, according to an industry source.

“Aeroflot absorbed most of Transaero’s existing fleet, but declined to pick
up Transaero’s 747-8I orders worth $1.5 billion at list prices,”
*FlightGlobal* *reported*
<https://www.flightglobal.com/news/articles/boeing-erases-transaero-747-8i-orders-from-backlog-439308/>
last month.

So Boeing flight-tested the two completed jets and put them in storage.
Flight tracking data shows that the aircraft, numbered *N894BA*
<http://flightaware.com/live/flight/N894BA> and *N895BA*
<https://flightaware.com/live/flight/N895BA>, were last flown in February,
to the Southern California Logistics Airport in Victorville, a sprawling
facility in the Mojave Desert whose hot, dry air prevents corrosion. This
“boneyard” is largely occupied by retired commercial jets that still bear
the liveries of Delta, FedEx, British Airways, and Cathay Pacific. Other
planes, unmarked, sit with their engines shrinkwrapped in anticipation of
one day returning to flight.

Boeing has been paying to store the two 747s in new condition while
searching for a buyer, which allowed the Air Force to negotiate a good deal
for them, sources said. It’s similar to the way car dealers discount new
vehicles from the previous year when new models hit the lot.

Turning a standard 747 into a flying White House *requires more*
<http://www.defenseone.com/politics/2015/02/buying-new-air-force-one-complicated/104220/>
than a blue-and-white paint job. After the Air Force takes ownership of the
planes, contractors will give them a state-of-the-art communications
system, defensive countermeasures, and hardening to withstand an
electromagnetic pulse caused by a nuclear explosion. New custom interiors
will have conference rooms, offices and seating for White House staff,
guests and journalists.

The Pentagon’s 2018 budget request, sent to Congress in February, shows
that the Air Force plans to *spend*
<http://www.saffm.hq.af.mil/Portals/84/documents/Air%20Force%20Research,%20Development,%20Test%20and%20Evaluation%20Vol-II%20FY18.pdf?ver=2017-05-23-160041-060>
nearly $3.2 billion between 2018 and 2022 on two new Air Force One jets.
Trump would likely fly on the new planes if he is elected to a second term.

The 747s currently flown as Air Force One are 747-200s, older models
that *started
flying presidents in the early 1990s*
<https://www.theatlantic.com/politics/archive/2015/01/air-force-one-point-three/385037/>
.

Nicknamed the “Queen of the Skies,” the four-engined 747 has been *a tough
sell in recent years*
<http://www.reuters.com/article/us-boeing-production-idUSKCN1080JL>.
Airlines instead have opted for cheaper-to-fly two-engine planes like the
777. Boeing has likely built the *last passenger 747*
<http://money.cnn.com/2017/07/19/news/companies/the-last-747-jumbo-jetliner/index.html>;
any future orders are likely to be for cargo versions.

United and Delta, the last two American carriers to fly older models of the
747, plan to retire the plane from service by year’s end. Just last week,
the iconic aircraft made its *last planned domestic revenue flight*
<https://www.usatoday.com/story/travel/flights/todayinthesky/2017/07/26/united-adds-boeing-747-flight-chicago-san-francisco-route/511694001/>,
a United trip from Chicago to San Francisco.[image: Description:
http://cdn.defenseone.com/b/defenseone/img/article-end.png]



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