Boeing has received a $US3.9 billion ($A5.3 billion) contract to build two 747-8 aircraft for use as Air Force One by the US president, due to be delivered by December 2024 and painted red, white and blue.
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The Pentagon announced the decision on Tuesday, saying Seattle-based Boeing's previously-awarded contract for development work had been expanded to include design, modification and fielding of two mission-ready presidential 747-8 aircraft.
The contract followed the outlines of the informal deal reached between Boeing and the White House in February.
That agreement came after President Donald Trump objected to the $US4 billion price tag of a previous Air Force One deal, complaining in a Twitter post that "costs are out of control" and adding "Cancel order!"
The White House in February said the new deal would save taxpayers more than $US1.4 billion, but those savings could not be independently confirmed.
Air Force budget documents released in February for fiscal year 2019 disclosed a $US3.9 billion cost for the two-aircraft program. The same 2018 budget document, not adjusted for inflation, showed the price at $US3.6 billion.
The Boeing 747-8s are designed to be 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-defence system.
A congressional official briefed about the deal indicated it was little changed from the informal agreement reached in February.
Trump told CBS in an interview aired on Tuesday that the new model Air Force One would be updated on the inside and have a different exterior colour scheme from the current white and two shades of blue dating back to President John F Kennedy's administration.
"Red, white and blue," Trump said.
"Air Force One is going to be incredible. It's going to be the top of the line, the top in the world. And it's going to be red, white and blue, which I think is appropriate."
Australian Associated Press