We were delighted to hear the Air Force tanker contract will be reopened. AWB and many of the state's chambers of commerce wrote President Bush, the Air Force and our congressional delegation asking them to take another look at the contract and bidding process. It just didn't add up.
Now it is good news for Boeing and Washington State that the contract will be rebid. With state revenues declining, a $35 billion contract could not only extend the jobs on the 767 (or 777) assembly line at Paine Field, but would bring billions to our state's economy and hundreds of millions in state and local tax revenues.
But for Northrop-Grumman-EADS (Airbus parent) the Pentagon's announcement upstaged a Kensington Palace Party to celebrate the contract awarded to them to replace the aging KC135 aerial refuelers, some of which are stationed at Fairchild Air Force Base, Spokane; and, all of which were made in Washington and Kansas. The shindig was in conjunction with Great Britain's Farnborough International Air show which concluded this last weekend. In fact, Alabama's Gov. Robert Riley even invited astronaut Buzz Aldrin to hoist the celebratory glass of cheer to toast the contract victory.
Well before feeling too comfortable, consider the results of the aircraft deals made at Farnborough. Airbus did very well in the competition selling 247 planes worth $38.7 billion. Boeing inked 197 new aircraft worth $23.1 billion-----so Airbus is still darn tough competition. So, don't expect them to throw in the towel on the tanker contract.
Airbus is also turning out the BIG GUNS---the leaders of Great Britain, France and Germany have contracted President Bush. Those three leaders have clout. Consider what McClatchy Report Les Blumenthal reported in The News Tribune:
"The White House confirmed Wednesday that British Prime Minister Gordon Brown, French President Nicolas Sarkozy and German Chancellor Angela Merkel talked to Bush about the tanker deal. U.S. relations with France and Germany have improved in recent months. In March, weeks after the Northrop-EADS team won the initial contract, Sarkozy said he would send 700 additional French troops to Afghanistan as Bush was pushing NATO members to become more involved. In June, Germany pledged $653 million in aid to rebuild Afghanistan.Germany, France and Britain also have been increasingly supportive of other Bush administration foreign policy initiatives."
So while the news is good for Boeing, there is a lot of work ahead. Boeing will have to have a sharp pencil to win this bid and it will need its aerospace workers behind it. A crippling strike by the machinists, engineers and technical workers would not help win the contract, especially if the labor dispute resulted in a long work stoppage. Hopefully, the 99% vote by the machinists union to strike is a just a signal to Boeing and our state and nothing more. A well place shot across the bow of our state's prized aircraft carrier is much different than a direct hit to the engine room.
Don C. Brunell, President (DonB@awb.org)
