| HeraldNet - Snohomish County's online news source |
 SUNDAY, MAY 11, 2008 8:33 pm |
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 Watch out Boeing, Airbus ... here comes China China has launched a company to build large commercial jets in an effort to make it less reliant on the Boeing Co. and Airbus. The government of China announced today the formation of China Commercial Aircraft with an investment of $2.7 billion. The central government, the Shanghai government and the country's two aviation companies, AVIC I and AVIC II, are the major stakeholders. "This is the dream of several generations and we will finally realize it," Premier Wen Jiabao said, according to a Bloomberg report. "We should rely on ourselves to build the large planes' main technologies, materials and engines." You can read more on this from Reuters or the Associated Press. ... [Read More] E-mail | Print | Comment NEW!
Senators question Northrop/EADS tanker job stats Sens. Maria Cantwell and Patty Murray have asked the U.S. secretaries of commerce and labor to review job projections given by Northrop Grumman and EADS for their tanker bid. In their original pitch to supply the U.S. Air Force with aerial refueling tankers, Northrop and EADS said their KC-30 tanker would create about 25,000 jobs in this country. Northrop and EADS revised that figure to 48,000 after the Air Force picked the KC-30 over the Boeing Co.’s KC-767. From the senators’ letter: As we understand it, NG/EADS will not be under any contractual obligation to create jobs across the United States, and we are trying to determine if they are overestimating job projections. In the past, EADS subsidiary Airbus Industrie (Airbus) has exaggerated U.S. job creation claims. In 2003, Airbus asserted that commercial work on its planes had created 100,000 U.S. jobs. In response to a request from Senator Murray, the United States Department of Commerce investigated and could not verify the job creation claims because Airbus calculations were “based on imprecise terms.” The aerospace industry is critical to our national and economic security. In 2006, in recognition of the unique and ongoing workforce challenges facing the U.S. aerospace industry, Congress established the Interagency Aerospace Revitalization Task Force. In January 2008, the Task Force reported that in order to effectively grow our aerospace industry we must create jobs for skilled engineers, technicians, machinists, tool and die makers, and technical writers. NG/EADS has stated a tanker assembly plant will be located in Mobile, Alabama. Its business model suggests high skill jobs will be created and maintained in Europe and other foreign countries. Given the vital importance of the aerospace industry to U.S. interests, it is essential to substantiate the number and quality of the NG/EADS U.S. job claims. It is also imperative for Congress to have this information to make informed decisions about the tanker program. For these reasons, we ask you to verify the NG/EADS job claims and provide an estimate of the true employment impact of the KC-45 Aerial Refueling Tanker Program. ... [Read More] E-mail | Print | Comment NEW!
Boeing snags orders for 32 jets Boeing has added orders for 32 jets this week. This morning, the company updated its orders Web site, listing new orders from Asiana Airlines, El Al Israel Airlines and Oman Air. The largest order, for 20 737s, came from an unidentified customer. Boeing still lags behind Airbus in year-to-date commercial orders with 378 compared to 397 orders. ... [Read More] E-mail | Print | Comment NEW!
Lawmaker to block tanker funding The Boeing Co. could get a little help from its friends in Congress as the company tries to overturn its controversial loss of a $35 billion tanker contract to Northrop Grumman and EADS. U.S. Rep. John Murtha, D-Penn., said on Thursday that he’ll halt appropriations for the Northrop and EADS tanker if auditors with the Government Accountability Office determine this summer that the contract should be rebid, according to Reuters. Murtha serves as chairman of the House Appropriations subcommittee on defense – the same committee on which Rep. Norm Dicks, D-Wash., sits in the number three spot in terms of ranking. Dicks told Reuters in an interview that he wants a congressional review regardless of what the GAO rules. “The more I look into this, the more I'm convinced this is a flawed decision,” Dicks said. “Congress has the ultimate authority.” “GAO will be very important here. But I don't feel that we have to do exactly what GAO does,” Dicks added. Also today, Alabama Gov. Bob Riley signed a resolution urging Speaker of the U.S. House of Representatives Nancy Pelosi to accept the decision of the U.S. Air Force's award of the aerial refueling tanker contract to Northrop and EADS. The move was praised by Northrop. The duo would assemble their KC-30 tanker in Mobile, Ala. ... [Read More] E-mail | Print | Comment NEW!
After moving its 787 static test aircraft last week, the Boeing Co. has started final assembly on the fifth Dreamliner in Everett. This will be the third flight test 787 jet. Two Dreamliners -- the static test and fatigue aircraft -- will not be delivered to customers. Boeing still plans to turn the power on to the first 787 in June and put that aircraft into flight in the fourth quarter of 2008. In the press release, Boeing also announced it has named a new vice president of 787 Final Assembly and Change Incorporation. Jack Jones, 53, replaces Steve Westby, who retired yesterday. Jones has been with Boeing more than 25 years and most recently served as the director of field operations and delivery. "'Traveled work' on this airplane is 65 percent less than on the first," Jones said, in the press statement. During its 787 update call last month, Boeing officials had said this aircraft was 75 percent more complete than Dreamliner number one. However, after receiving all of the major components late last week, Boeing revised down its original estimate, said Mary Hanson, a spokeswoman for Boeing. ... [Read More] E-mail | Print | Comment NEW!
Tanker tough talk continues Analyst Loren Thompson takes a look at the strained relationship between the Boeing Co. and the U.S. Air Force in a recent defense brief. Boeing, of course, has protested the Air Force’s decision to award a multi-billion dollar aerial refueling tanker contract to competitor Northrop Grumman and its partner EADS. As the parent company of Airbus, EADS has promised not only to assemble the A330-based tankers in Mobile, Ala., but also to assemble Airbus A330 freighters there as well. Thompson notes that the loss of the contract was doubly difficult on Boeing, which sees its refueling tanker business slipping away while its commercial rival makes the leap to U.S. soil. Boeing has turned to the “It doesn’t add up” campaign, which questions the Air Force’s rationale. Northrop counters with its “Why we won” series. The GAO should come out with its take on Boeing’s protest in mid-June. But that might not put an end to the dispute as members of Congress seem intent to have their say. As vice chairman on a subcommittee on defense appropriations, Rep. Norm Dicks, D-Wash., has threatened, to block funding for Northrop and EADS-built tankers. While Boeing supporters in St. Louis urge Congress to intervene, some closer to home here in Washington caution against such an unprecedented step. ... [Read More] E-mail | Print | Comment NEW!
Parts begin arriving for third 787 The Boeing Co.’s Dreamliner partner, Vought Aircraft Industries, has delivered the aft fuselage for the third 787. When Boeing confirmed another delay to its 787 Dreamliner earlier this month, program leader Pat Shanahan outlined several milestones to track progress on the 787. One of those milestones leading up to first flight: the arrival of major assemblies for airplane three in Everett by the end of April. Vought’s making good on its part of that step by delivering its assembly on April 13, according to a company press statement. Vought says this aft fuselage is the first that includes structures and the start of systems components. “We have successfully demonstrated our commitment to the quality and level of completeness of our aft sections to the 787 Dreamliner program, while at the same time effectively reducing the amount of traveled work to Boeing,” said Joy Romero, vice president of Vought’s 787 division. “In recent reviews with Boeing, they have indicated that Vought is taking the right actions in continuing to improve completeness and adding value to the program.” By its own account, Vought in the past has admitted to being one of the most problematic partners in Boeing’s global chain. But Boeing recently came to Vought’s aid by buying out its shares in Global Aeronautica, its South Carolina joint venture with Italy’s Alenia. According to its new schedule, Boeing intends to fly the 787 in the first quarter of 2008 and deliver the first Dreamliner in the third quarter of 2009. ... [Read More] E-mail | Print | Comment NEW!
FAA to delay Boeing's 787? It didn’t take long for rumors of another Dreamliner delay to surface. Boeing officials confirmed a long-anticipated delay – one that pushed first delivery to the third quarter of 2009 – earlier this month. This weekend, German magazine Focus reported that Boeing will announce another delay next month due to difficulties obtaining certification from the FAA. The magazine cited unidentified sources from the FAA and predicted a delay of about three months, until late 2009 or early 2010. Boeing spokeswoman Yvonne Leach told Reuters: "The FAA has been overseeing our certification effort every step of the way and this is not our understanding." And an FAA spokeswoman told the publication that she wasn’t aware of an additional delay. In the Herald’s online (unscientific) reader poll taken after Boeing confirmed a delay and pushed the jet’s delivery date until third quarter 2009, about 36 percent of readers felt confident the jet maker would meet its latest mark. About 24 percent of poll respondents thought the 787 would be delivered late in 2009 while 21 percent said early 2010. Seven percent picked late 2010 and a very skeptical 12 percent of poll takers thought the 787 won’t be delivered until 2011 or later. ... [Read More] E-mail | Print | Comment NEW!
SPEEA to Boeing: Stop outsourcing In a contract year, Boeing’s engineers union, SPEEA, is turning to video to air many of its issues with the company. Last month, SPEEA’s new director laid out the union’s concerns – ranging from new pension plans to healthcare – in an interview with The Herald. Boeing’s lead labor negotiator, Doug Kight, addressed a variety of issues that could come up in talks with either SPEEA or the Machinists in today’s newspaper. SPEEA’s latest video looks at Boeing’s use of outsourcing. The engineers discuss the outsourcing-related difficulties the company has faced with its delayed 787 Dreamliner. SPEEA outsourcing video Had enough of outsourcing? After watching the SPEEA video, you might want to take a look at the Onion’s video on the same topic. The next step in outsourcing? The Onion ... [Read More] E-mail | Print | Comment NEW!
An Air Force bid blunder? The Associated Press is reporting that the Pentagon this week will come down on the Air Force for mishandling a 2005 contract award. The Pentagon will say the Air Force mishandled a $50 million contract to promote the Thunderbirds aerial stunt team. The report will be highly critical of Air Force leadership, the AP writes. How will this play into Boeing’s efforts to overturn the Air Force’s decision to award a $35 billion tanker contract to Northrop and EADS? Well, Boeing supporters already allege that presidential candidate Sen. John McCain, R-Ariz., had a hand in steering the competition in Northrop’s way. Pentagon criticism of the Air Force’s process and leadership likely won’t be ignored by Boeing or its D.C. lawmaker allies, who are rallying in the nation’s capitol again today. ... [Read More] E-mail | Print | Comment NEW!
Tax day tanker talk The Boeing Co. and its supporters have seized upon Tax Day to push their tanker agenda. This morning, U.S. Sen. Patty Murray, D-Wash., again questioned the U.S. Air Force’s decision to award a multi-billion dollar aerial refueling tanker contract to Northrop Grumman and EADS. "While American taxpayers wait for their stimulus checks, the Administration is sending $40 billion of their hard-earned money overseas to design and build a plane for the American military. There is simply nothing fiscally responsible about that," Murray said, according to a press release. Also in a release today, Boeing argues that its KC-767 tanker “would save billions of dollars over the anticipated lifetime of the aircraft compared with the larger Airbus-based KC-30.” The Chicago-based company drew support from Kansas lawmaker Sen. Sam Brownback. Workers in Wichita would have done finishing work on Boeing’s KC-767 tanker. "As Americans pay their taxes this week, it's essential that they consider how effectively those dollars will be spent to equip U.S. warfighters," Brownback said, in the Boeing release. "It's especially important to think about the total cost of developing, producing, operating and maintaining vital defense assets that must be ready to fly at least two generations of American military men and women." Local analyst Scott Hamilton, with Leeham Co., discussed Boeing’s aggressive public relations campaign over the tanker in his biweekly commentary. Hamilton details a few theories on Boeing’s hard push, including the thought that Boeing could be trying to preempt a labor strike later this year. ... [Read More] E-mail | Print | Comment NEW! |
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