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Just What is Everyone Bitching About? Boeing's as International as Airbus

March 12th, 2008 @ 11:31 am

5 Comments

Categories: General

Tags: Airbus, Boeing Co., Logic, Purchasing & Procurement, Business Operations, Michael Mattis

Granted, it’s not hard to get Lou Dobbs all twitterpated. It’s part of his schtick. Earlier this week, CNN’s bloviator-in-chief was puffing and snarling about the Air Force’s awarding a $35 billion air tanker contract to an international team that includes Northrop Grumman and the European firm, EADS Airbus, over a supposedly all-American Boeing.

“I have described this decision as completely and utterly idiotic,” Dobbs told Senator Maria Cantwell, a guest on his show, on March 11. Dobbs and Cantwell agreed that the deal could affect the U.S. economy and pose a serious threat to our national security – after all, isn’t Airbus, like, French or something? Other TV and radio pundits quickly followed suit, each trying to out-patriot the others in denouncing the deal.

What Dobbs and others fail to realize, however, is that Boeing itself proudly utilizes “crowdsourcing,” contracting with firms around the world to supply not only parts but crucial systems. As noted in our May, 2007 BNET Basics report, For Boeing, It Takes a Village to Build a New Airplane:

In recent years, American aerospace know-how has migrated to international competitors; in 2003, Boeing lost its position as the global sales leader to Airbus, a European consortium. Yet instead of trying to compete with foreign expertise, Boeing decided to harness it by inviting 100 global suppliers to collaborate on the design, engineering, and manufacturing of the new 787 Dreamliner, the company’s first all-new commercial airliner in 12 years.

…Boeing executives concluded that mass collaboration was the only way to create the kind of cheaper, more fuel-efficient jetliner that airlines want. The logic is simple: Boeing’s key suppliers — including Mitsubishi, Kawasaki, Honeywell, and General Electric — develop plenty of products for other industries and international markets, and their collective expertise is invaluable. “It would be arrogant to think that all of the best ideas and best technologies exist within the walls of Boeing,” Boeing spokeswoman Loretta Gunter says.

Boeing’s international footprint probably has a lot to do with the fact that, while it was content to let Dobbs and others do the xenophobic puffing on its behalf, the company was careful not to cite national security concerns in its protest to the General Accounting Office. Instead, the company cited procurement irregularities and complained that the “competition was seriously flawed and resulted in the selection of the wrong airplane.”

Well, I guess procurement irregularities just don’t make for dramatic TV punditry the way that a national security crisis does.

 
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  •  
    1

    alekp

    03/14/08 | Report as spam

    Boeing vs. Airbus

    I applaud your objectivity. Hope more people share the same attitude, especially in the States.

  •  
    2

    guptalk@...

    03/14/08 | Report as spam

    RE: Just What is Everyone Bitching About? Boeing's as International as Airbus

    Why does Boeing feel entitled to the contract? Was their product superior? Was their cost model better? Didn't they rig the bidding last time? If they want to compete, then they need to compete and be the best in the world. They have that capacity.

  •  
    3

    jockog3

    03/14/08 | Report as spam

    RE: Just What is Everyone Bitching About? Boeing's as International as Airbus

    Apparently there were five criteria by which the two jets were compared. Airbus won ALL FIVE. I think one of these criteria was price. Aren't we all (taxpayers) better off having to pay a little less for a little more?

  •  
    4

    bobfox_sg@...

    03/14/08 | Report as spam

    RE: Just What is Everyone Bitching About? Boeing's as International as Airbus

    The article over symplifies the situation. For many years (including for the 777), Boeing has outsourced major components wiht its core skills being final assembly, cockpit and systems integration. One driver for this is offsets and other programs which give it market access. Boeing's domination to date of the Japanese market would not have been possible were MHI not to have contributed so much to Boeing aircraft.

  •  
    5

    addicted2speed

    03/17/08 | Report as spam

    Resting on Assumptions

    From what I understand, I think the fault lies with Boeing in assuming that nationalism in military contracts would automatically entitle them the contract, even if their product was inferior and included no innovation.

    It sounds a bit like whining to me. They lost the contract due to better product from Grumman/Airbus, specifically search on "Refuelling Boom" for a good example... they're not happy about it, so they file an appeal.

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