Boeing win dodgy US tanker deal, EADS gets shafted

[scorza]

http://business.timesonline.co.uk/tol/business/industry_sectors/transport/article7056006.ece

Even the Americans are turning away from free trade (when it suits them, what's new?), and once again our naive government, the only people in the world who still seem to believe that free trade is best are crying into their cornflakes about it.

To summarise, US wants a new tanker for refuelling aircraft in flight, Boeing get caught exerting undue influence on the military, EADS submit a superior bid and win. Cue outcry amongst Boeing lobbyists, contract is put out to tender again with slightly different rules, favouring Boeing - as the EADS CEO puts it succinctly:

The competition request is now for a smaller, less capable plane and this gives a huge advantage to the 767

 

[Ricochet J]

EADS clearly won the contract, Boeing are just being bitter. An EADS "ambassador" suggested it could mean less work in the US on EADS' part. Apparantly there are still talks on the table.

A joint venture perhaps? It will be tricky since I'm sure both companies are reluctant to share their technical capabilities. But it could spur the creation of a new company which may deal with the contract. A bit like how rivals EOn and nPower began a joint venture in November 2009 to produce new nuclear power stations in the UK by 2015.

 

[Charlie Bravo]

I find it odd that the yanks are seeking a direct replacement for the KC135 with requirements that more or less match it but don't better it

 

[Cosimo]

http://business.timesonline.co.uk/tol/business/industry_sectors/transport/article7056006.ece

Even the Americans are turning away from free trade (when it suits them, what's new?), and once again our naive government, the only people in the world who still seem to believe that free trade is best are crying into their cornflakes about it.

All Mandelson has done is to express concern that this could lead to a little EU trade retaliation. You wouldn’t expect him to do any less. What makes you say we are the only ones who believe in free trade, are you making it up?

 

[JonnyT]

I find it odd that the yanks are seeking a direct replacement for the KC135 with requirements that more or less match it but don't better it

Bear in mind that most of the KC-135 airframes are 1950s vintage and have established some high flight-time hours (thus nearing the end of their fatigue life). Therefore they'd need major maintenance/overhauls to keep them running for the medium/long term.

Plus the -135 is a 4-engine aircraft, which is also inefficient in terms of maintenance, running costs and fuel efficiency - witness the shift to twin-engine (ETOPS) aircraft on long-haul routes such as the Atlantic. Therefore switching to a twin-engined aircraft would also be more economical in the long term.

 

[Naffa]

Even the Americans are turning away from free trade (when it suits them, what's new?), and once again our naive government, the only people in the world who still seem to believe that free trade is best are crying into their cornflakes about it.

Urrr... Do you really mean that? All you have to do is look at what we did to the banks to see that your statement is false.