DALLAS (AP) – It’s a big deal for a big company – Boeing has landed a nearly $14 billion contract from Singapore Airlines to sell it 39 planes.
But is President Donald Trump right that 70,000 or so U.S. jobs will flow from the contract? Depends on how you look at it.
Boeing says the order will “sustain” more than 70,000 U.S. jobs for the company, its suppliers and others. It doesn’t say they would be new jobs.
FILE – In this Tuesday, Feb. 16, 2016, file photo, an engine and part of a wing from the 100th 787 Dreamliner to be built at Boeing’s North Charleston, S.C., facility are seen outside the plant. President Donald Trump is showcasing a major contract landed by Boeing from Singapore Airlines and talking about the 70,000 or so U.S. jobs that he says will flow from that order. It’s indeed a big deal for Boeing but there are some caveats to keep in mind when Trump addresses the subject (Brad Nettles/The Post And Courier via AP, File)
Boeing spokesman Dan Curran says the company arrived at the job estimate by using a government formula that says every $1 billion in U.S. exports supports 5,200 U.S. jobs,
The Boeing calculation is based on the list price of the planes, though. Singapore Airlines probably is paying far less because airline customers get big discounts.
President Donald Trump and Singapore’s Prime Minister Lee Hsien Loong look on as Singapore Airlines CEO Goh Choon Phong, left, and Kevin McAllister, president and chief executive officer of Boeing Commercial Airplanes, sign a contract in the Roosevelt Room of the White House, Monday, Oct. 23, 2017, in Washington. (AP Photo/Evan Vucci)
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