Saturday, March 01, 2008

Free Trade?

I was very disappointed to see the reaction to the U.S. Air Force decision to replace its aging tanker fleet with aircraft supplied by the EADS/Northrop-Grumman venture.

EADS/Northrop-Grumman only competed on the basis that it would be a 'free and fair' competition where the best product with the best price won. But judging from the reactions from some in Congress as they howled in protest, in their minds it was a foregone conclusion that Boeing would/should get the deal and that the idea of someone else actually winning a supposedly open bid not only never crossed their minds but was unacceptable.

Boeing workers protested "American workers equals best tankers" and "Our military deserves the best" which implied (and not very nicely) that any product made in technologically advanced countries such as Europe, Japan, U.K. etc., were somehow second rate. But if it was the U.S. Air-Force that awarded EADS/Northrop the tender based on them meeting or exceeding a very strict award specification they themselves had written, then surely it was that same military who decided they had found the best?

They said that Boeing had been ‘building refuelling tankers for 75 years’. True. But complacency in any company breeds laziness and ultimately contempt and once that sets in it is time to pull the rug out from under and go back to a time honoured (and also American) value of having to chase that (taxpayers) buck instead of having it handed it to them on a plate.

Wichita's Rep. Tiahrt said “I cannot believe we would create French jobs in place of Kansas jobs”. Well apart from the very unattractive anti-French sentiment, EADS/Northrop is set to create thousands of jobs in the to be contstructed assembly plant in Alabama and the Governor of that state is as happy as a clam. Besides, these are highly sophisticated aerospace products and there are only a handful of companies (and countries) in the world that have the knowledge, industrial base and money to make them.

Boeing lost the original contract because of illegal/unethical activity. Two Boeing executives went to gaol (jail) and the Chief Executive resigned because of corrupt contracting behaviour which did nothing to dispel oft-stated claims of a sometimes too-cosy relationship.

Perhaps it is a good thing that EADS/Northrop-Grumman won. The U.S. Air Force got a good product that delivers more fuel, more cargo and more passengers than its rival and the incumbent will spend more time, money and effort on the shop floor instead of K street next time.

The days of the million dollar monkey wrench charged to the long suffering tax payer could be coming to an end…

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