Boeing
Posted at 11:00am on Jun. 23, 2008 Boeing v. Airbus
By Erick
As you probably know, the Air Force ran afoul of the GAO in the past couple of weeks over its decision to give an air tanker deal to Airbus.
There is a lot of spin on both sides regarding the implications, outcome, etc.
Jed Babbin, who has a great deal of experience in these sorts of matters, sorts it all out.
The government is supposed to buy what it needs, not what it wants. And – in the case of combat systems, among which the tanker is certainly counted – the needs have to be defined by the warfighters. The government’s request for contractor proposals is supposed to define those needs in terms specific enough to enable the contractors to compete by offering the aircraft that best meets the precise need. But the Air Force -- bowing to political pressure -- crafted a specification so vague that two vastly different aircraft could arguably qualify under it.
To make matters worse, in the final stages of the competition, the Air Force cut the warfighters out of the loop and changed what they had said they needed to keep the European Airbus in the running for the contract. That and the other errors it made -- the process issues the GAO used to overturn the decision -- provide the lessons on which the Air Force can get it right in the days ahead.
Posted in Airbus | Boeing | GAO | National Security | Tankers — Comments (7)/ Email this page » / Read More »
Posted at 1:30am on Feb. 26, 2008 Airbus Spies With Its Little Eye?
By Pejman Yousefzadeh
Boeing is based in Chicago and as a Chicago lad, I rather like it when hometown industries do well. Good for the local economy and all that. However, being the free marketeer that I am, I want there to be tough, vigorous competition in all instances where companies vie for business and work.
Boeing is currently vying for some business from the United States government:
The government is due to pick the winner this week in a huge warplane competition that pits No. 2 U.S. defense contractor Boeing Co (BA.N: Quote, Profile, Research) against a team made of No. 3 Northrop Grumman Corp (NOC.N: Quote, Profile, Research) and its European partner, Airbus parent EADS (EAD.PA: Quote, Profile, Research).
Closely watched on both sides of the Atlantic, the battle involves one of the largest airplane orders expected for years to come. Each of the teams has spent tens of millions to hone its proposal, advertise it widely, and enlist high-profile former generals to underscore the merits.
Most defense analysts expect Chicago-based Boeing to win the contract for 179 new aerial refueling tankers, valued at $30 billion to $40 billion over the next 10 to 15 years, but Northrop insists it has a fighting chance.
May the better company win. But somehow, I have a hard time believing that the better company will or should be Airbus. No offense intended against our European friends, but when your employees periodically go on strike, it tends--or at least should tend--to reduce confidence in your workmanship. Also, there is that whole industrial espionage bit, which ain't all that appealing.
Posted in Airbus | Boeing | Defense Expenditures | National Security | Northrop Grumman | Not Giving Away The Store — Comments (18)/ Email this page » / Read More »
Posted at 11:32am on Nov. 13, 2007 Emirates in Elephant Airliner Deal, Win for Airbus [Updated]
Boeing Gets a little slice
By blackhedd
Story here. The United Arab Emirates hosted their own airshow this weekend, and they announced a deal to buy Airbus products with a nominal value over $30 billion.
Our hometown team, the Boeing Commercial Airplanes division, got a much smaller order from Emirates. This story is noteworthy for several reasons.
Update: The central bank governor of the United Arab Emirates was quoted as saying that several Gulf states (also including Kuwait) may abandon their domestic currency pegs to the US dollar. Since these countries get paid for oil in dollars but import goods mostly from Europe, the weak dollar is generating big inflation for them.
More...
Posted in Airbus | Airlines | Boeing | Congress | Dubai | Economy | Emirates — Comments (8)/ Email this page » / Read More »
