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American Airlines CEO: Trump Isn't The First To Complain About Boeing's Prices

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American Airlines CEO: Trump Isn't The First To Complain About Boeing's Prices

President-elect Donald Trump's Tweet on Tuesday shocked the airline industry and had everyone talking.

Boeing Co (NYSE: BA) "is building a brand new 747 Air Force One for future presidents, but costs are out of control, more than $4 billion. Cancel order!"

On the one hand, Trump's threat shows his willingness to cut costs out of the federal budget wherever he can. On the other hand, Air Force One could withstand a nuclear blast from the ground, so maybe the cost is justified.

Airline Exec Offers His Take

Doug Parker, CEO of American Airlines Group Inc (NASDAQ: AAL) was a guest on CNBC Wednesday and naturally the conversation focused on Trump's Tweet.

CNBC's Joe Kernan asked the executive if there are times when the executive feels the urge to call up Boeing and scream out, "Are you kidding me?"

"We do it all the time," Parker answered. "We have a great relationship with Boeing but Donald Trump is not the first person to complain about their prices. I can assure you that."

CNBC's Andrew Ross Sorkin also jumped in and asked the executive how much Air Force One should cost. Sadly, the executive acknowledged that he has "no idea" how much the plane should cost given all the high tech and secret technology involved.

 

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