Should US Tanker Fleet Contract Be Given To Airbus?

Annie

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Nov 22, 2003
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http://www.blackfive.net/main/2008/01/can-we-risk-all.html

This is probably the most ridiculous DOD contracting misstep that I've heard of in a long time. But, as I'm a former Soldier and not a USAF or DOD contract officer, I'd like your opinion - so read on and then please Comment if you are so inclined.

In the coming weeks, the US Air Force tanker fleet will be focus of some serious decision making. Up for grabs is a $40 billion contract to replace our existing and aging fleet. One serious contender is European aircraft manufacturer Airbus - a company supported by European governments via the European Aeronautic, Defense and Space (EADS) consortium.

And those governments don't play nice when it comes to getting contracts for Airbus. According to this Center for Security Policy Report, French Intelligence has supplied Airbus with information to help it break into the American market. France owns a 15% interest in Airbus.

Vlad Putin has an interest, too, and wants Russia to own 10-20% of Airbus. Of course, Putin and the Russians always play fair.../sarcasm

So, do we put our Air Force tanker fleet (and other fleets) at risk by considering a contract with Airbus?

If you read the whole CSP report from almost a year ago, and do your own research (Lexis-Nexus will get you there), I don't see any possibility of awarding a contract to Airbus for our tanker fleet without putting our assets at an unreasonable risk. The CSP report gives plenty of nightmare scenarios that may or may not occur but also provides plenty of incriminating evidence that this looming deal is a very bad idea for our national security.

And, looking around for more information you will see, in the WSJ today, Daniel Michaels writes an article about other Airbus problems - primarily lacking the ability to deliver products as promised. Michaels' article is about the A400M - a military transport turboprop to compete with transports like the C-17:...
 
Rumsfeld tried to lease 767s from Boeing to avoid this bid. Regardless, I think it very unlikely the order will go to EADS. If it does, there will be a huge storm. No, the US will never pay tens of billions to the French and Germans for EADS aircraft unless there is some other gigantic payoff, perhaps political. No administration could handle the political heat of signing the EADS contract. In the end, EADS will drive down the price Boeing can obtain, and that may be maladaptive, depending on the surviving margin.
 
If it does, there will be a huge storm. No, the US will never pay tens of billions to the French and Germans for EADS aircraft unless there is some other gigantic payoff, perhaps political. No administration could handle the political heat of signing the EADS contract.

But it's considered perfectly fine to sell 10 billion dollars worth of arms to Saudi Arabia?
 
No. This is the one area my economist friends chide me on, even my bicycles are made in the USA. I feel like we are in this together and when possible we support each other.
 
No. This is the one area my economist friends chide me on, even my bicycles are made in the USA. I feel like we are in this together and when possible we support each other.

Well, what if Oregon weren't part of America? Would it suddenly be bad to trade with them? If Ottawa were part of America, would it be good to trade with them? I just don't really see the difference.
 
What's with the Os?

Living in Oregon, I can tell you honestly...it almost isn't part of the US.
 
But it's considered perfectly fine to sell 10 billion dollars worth of arms to Saudi Arabia?
Yes, it is. The two situations are not comparable. Anyway, this time around the Saudis are buying Euro fighters, not US fighters, probably because the US refuses to sell the full capabilities of even its second tier fighters to to countries like Saudi Arabia. The F-15s owned by Saudi Arabia, for example, are missing the most advanced radar, etc. Besides, Paulitics, Saudi Arabia manufactures no aircraft, while the US does make anything made by EADS and more.
 
Well, what if Oregon weren't part of America? Would it suddenly be bad to trade with them? If Ottawa were part of America, would it be good to trade with them? I just don't really see the difference.
If Ottawa were part of America, we'd give it back.
 

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