Giant shock - Tanker contract goes to Airbus!

[spejic]

The tremendous $40 billion contract goes to the parent company of Airbus and their American partners, Northrop Grumman. Boeing gets the shaft again, after first losing their crooked tanker leasing agreement that Senator McCain almost single-handedly broke up. The aircraft - and, in fact, all of the cargo derivatives of the A330 - will be made in Alabama to take advantage of our third-world currency.

It might not be over yet, as certain members of Congress don't like the idea of picking the plane that carries more for longer distances for less cost.

http://www.nytimes.com/2008/03/01/business/01tanker.html?_r=1&ref=worldbusiness&oref=slogin

[aloisius]

It might not be over yet, as certain members of Congress don't like the idea of picking the plane that carries more for longer distances for less cost.

http://www.nytimes.com/2008/03/01/business/01tanker.html?_r=1&ref=worldbusiness&oref=slogin

you called it

http://www.guardian.co.uk/world/2008/jun/18/usa.eads

[spejic]

Politics has swamped picking the better aircraft, with McCain being strongly identified with the anti-Boeing forces and the Democrats strongly siding with Boeing. Boeing has won recent contracts with Japan and Italy, and they have had problems with delays for both, resulting in fines and investigations.

[dannytoone]

Oh dear...when will protectionists ever learn that their ideas just do not work?

[spejic]

It doesn't even make sense from a protectionist point of view. The Boeing 767 put up in the bidding is 1/3 Chinese. And if Boeing re-bids using their larger 777 (as the main point of contention in the contract was that the Air Force supposedly changed the rules to favor larger aircraft mid way), the tanker will be close to half Chinese built. Isn't it better to get an airplane that is largely built in nations that are close allies of us? Certainly it is better to get an aircraft that is actually flying than one that only exists on paper

There is a reason why the Airbus A330-based tanker has been winning the more recent competitions in Australia, Britain, Saudi Arabia and the United Arab Emirates. The factory is going to open in Alabama no matter how the US contract goes because they have a lot of tankers to build anyway.

[topcatcole]

Sadly, "better" has absolutely nothing to do with who wins military contracts. This is more true today than at any other point in our history. This is not "politics as usual". It is the triumph of politics over reason; the triumph of power over merit.

[Flyin Ryan]

It doesn't even make sense from a protectionist point of view. The Boeing 767 put up in the bidding is 1/3 Chinese. And if Boeing re-bids using their larger 777 (as the main point of contention in the contract was that the Air Force supposedly changed the rules to favor larger aircraft mid way), the tanker will be close to half Chinese built. Isn't it better to get an airplane that is largely built in nations that are close allies of us? Certainly it is better to get an aircraft that is actually flying than one that only exists on paper

There is a reason why the Airbus A330-based tanker has been winning the more recent competitions in Australia, Britain, Saudi Arabia and the United Arab Emirates. The factory is going to open in Alabama no matter how the US contract goes because they have a lot of tankers to build anyway.

The only way it makes sense from a protectionist point of view is Boeing is American and Airbus is European, and all the underlying bits and assemblies don't matter. A bit like how Ford is perceived as American even if their car is built in Mexico and BMW is perceived as German even if their car is built in South Carolina.

If I were the Air Force Commandant I'd be pissed.

Sadly, "better" has absolutely nothing to do with who wins military contracts.

Which could eventually lead to us no longer having the world's best military if we continue down this road even more in the future.

[topcatcole]

Shock!! A recompete, which means they are going to give it away to Boeing. Once again, politics triumphs!!

http://www.marketwatch.com/news/story/air-force-reopen-35-bln/story.aspx?guid={FF1192B2-3BCE-4000-AEFB-77ADD105A041}

[spejic]

Boeing has had a terrible recent record for supplying military aircraft. Australia is now stopping payment on the AWACS aircraft that were supposed to be delivered two years ago, and now won't be until 2010.

http://www.news.com.au/heraldsun/story/0,21985,24003431-664,00.html

[spejic]

More delays delivering tankers to Italy means more fines for Boeing. They are now 3 years late.

http://www.kansas.com/107/story/492316.html