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Thread: Air Force Snubs Boeing, Orders Airbus Tankers

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    Moderator Matt Molnar's Avatar
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    Air Force Snubs Boeing, Orders Airbus Tankers

    Dow Jones Newswires, via SmartMoney:
    Air Force Snubs Boeing for Airbus Tankers
    Published: February 29, 2008 4:33 PM

    NEW YORK (Dow Jones) -- Northrop Grumman Corp. and European Aeronautic Defence & Space Co. broke Boeing Co.'s lock on the market for aerial refueling tankers, winning a $40-billion contract to turn Airbus jets into flying gas stations for U.S. military aircraft, according to a person familiar with the situation.

    The unexpected win will likely bolster Los Angeles-based Northrop's standing as a major contender for large programs, while also expanding EADS's foothold in the U.S. defense market.

    The Air Force's decision to choose the Northrop-led team is a major setback for Boeing, particularly after Boeing lost out on a $23-billion chance to be the sole supplier of tankers in 2001 after the discovery that a top Boeing official and a former Air Force acquisition official had conducted illegal job negotiations. [Full Article]
    :shock:
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    Moderator mirrodie's Avatar
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    Re: Air Force Snubs Boeing, Orders Airbus Tankers

    :shock: to the 3rd degree!!!
    And I, I took the path less traveled by
    and that has made all the difference......yet...
    I have a feeling a handle of people are going to be very interested in what I post in the near future.

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    Senior Member lijk604's Avatar
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    Re: Air Force Snubs Boeing, Orders Airbus Tankers

    Nothing like helping out the US economy....NOT! :evil:

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    Moderator Matt Molnar's Avatar
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    Re: Air Force Snubs Boeing, Orders Airbus Tankers

    Well, the conversion from regular A330 to tanker will be performed in California, and they will have a good percentage of US-built parts. Still stunning though.
    Ladies and gentlemen, this is your captain speaking. We have a small problem.
    All four engines have stopped. We are doing our damnedest to get them under control.
    I trust you are not in too much distress. —Captain Eric Moody, British Airways Flight 9

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    Senior Member Iberia A340-600's Avatar
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    Re: Air Force Snubs Boeing, Orders Airbus Tankers

    Interesting that they will be doing the conversion in California. Currently it is being done in Spain at the EADS facility.

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    Senior Member hiss srq's Avatar
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    Re: Air Force Snubs Boeing, Orders Airbus Tankers

    Wonderful, more money to Eurotrash, well done by the chincy basterds in DOD and Congress again.
    Southwest Airlines-"Once it pop's it's time to stop" Southwest Airlines-"Our Shamu's are almost real" Southwest Airlines -"We blow our top real easy" Southwest Airlines- "You can't top us..... really"

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    Re: Air Force Snubs Boeing, Orders Airbus Tankers

    I think the conversion and assembly work is going to be done in Alabama, which was smart on EADS part because southern states have a lot of pull in Washington, which is one reason why all the Japanese auto transplants set up there and not the midwest. If Airbus can also use that plant to make commerical jets with low cost US labor priced in US dollars, it will also make them much more competitive with Boeing as the strong Euro has been hurting them.

    Anyway, can't say I am all that surprised. Boeing's bid was sadly still tainted by the Darleen Druyun scandal, the Airbus is obviously a newer technology aircraft than the B767, and lastly, since the government has eliminated most if not all 'buy American' provisions from its contracting, procurement processes have become the same as those used by multinational corporations - based on the best price/value tradeoff. And American companies don't always have the best price/value in a global economy. Where the jobs are and who the money goes to are not major considerations like they might have been 50 years ago when they bought those KC-135s.

    The thing that bothers me about this is how they will rename the aircraft (as they did with the new Marine One) for PR reasons, to create the impression that it's not a foreign product, not sure if the thing has an official name yet but I am sure it will be referred to a "Northrop" whatever in all official communications, even if 75% or more of it is the same as the Airbus A330. Guess the folks who were pouring out their French wine and eating Freedom fries a few years ago will have to get over their biases, as the government certainly did. It is undeniably a great day for Airbus and EADS, and by extension, for France and Germany.

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    Re: Air Force Snubs Boeing, Orders Airbus Tankers

    Airbus also had said it would possibly build a plant in Alabama to build the aircraft if they won the bid. We'll see....

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    Re: Air Force Snubs Boeing, Orders Airbus Tankers

    Stupid stupid stupid....

    :shock:
    nwa FOREVER!

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    Re: Air Force Snubs Boeing, Orders Airbus Tankers

    BTW as the announcement apparently came after the close of the stock market, Boeing shares tanked an additional 3.25% in after hours trading, having already been down today with the market. Will be interesting to see what it does on Monday given the number of pundits who were convinced the tanker deal was all but certain. Aside from jobs and national pride, I guess the fact that alot more americans have an investment in Boeing than they do in EADS was also not deemed relevant

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    Re: Air Force Snubs Boeing, Orders Airbus Tankers

    From the AP article, it's Alabama, not California where the work will be done:

    "The EADS/Northrop Grumman team plans to perform its final assembly work in Mobile, Ala., although the underlying plane would mostly be built in Europe."

    How much you want to bet the second point will not be widely mentioned after today?

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    Senior Member moose135's Avatar
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    Re: Air Force Snubs Boeing, Orders Airbus Tankers

    Well, I'm stunned to say the least. Never thought it would go to Airbus.

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    Re: Air Force Snubs Boeing, Orders Airbus Tankers

    Quote Originally Posted by moose135
    Well, I'm stunned to say the least. Never thought it would go to Airbus.
    That's an understatement.
    R.I.P. Matt Molnar 1979-2013
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    Senior Member SengaB's Avatar
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    Re: Air Force Snubs Boeing, Orders Airbus Tankers

    It is kind of strange that the backbone of the USAF will be an non U.S. aircraft now. Even more strange is the U.S. insignia and U.S. Air Force that will be plastered on the side of the Airbus aircraft....Amazing.
    I am excited about this. I'd love to see a A340-300 in USAF livery as well.

    Senga

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    Re: Air Force Snubs Boeing, Orders Airbus Tankers

    Quote Originally Posted by SengaB
    It is kind of strange that the backbone of the USAF will be an non U.S. aircraft now. Even more strange is the U.S. insignia and U.S. Air Force that will be plastered on the side of the Airbus aircraft....Amazing.
    I am excited about this. I'd love to see a A340-300 in USAF livery as well.

    Senga
    I don't think I'm so excited about this. It feels quite unpatriotic. It's almost like having the President ride around in a stretch Toyota limo.
    R.I.P. Matt Molnar 1979-2013
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