Dealing with Dubai

The flap over the Dubai ports deal could scuttle Boeing’s attempts to sell 787s to Emirates, pundits are reporting.

The Hill, a weekly newspaper that covers Congress, reported that http://www.thehill.com/thehill/export/TheHill/News/Frontpage/030906/news1.html Boeing is quietly lobbying on behalf of the Dubai company in hopes of preserving ties with one of its best customers:

Key Quote: “A source close to the deal said members of Dubai’s royal family are furious at the hostility both Republicans and Democrats on Capitol Hill have shown toward the deal. … ‘They’re saying, All we’ve done for you guys, all our purchases, we’ll stop it, we’ll just yank it,’ the source said.”

Along with possibly scuttling the Boeing deals, the United Arab Emirates could cut off U.S. Navy access to the port of Dubai, an important supply and liberty port for sailors deployed in the region, the paper said.

MSNBC correspondent Tom Curry reported that http://msnbc.msn.com/id/11724975/ speculation in the industry is that the fight will hurt Boeing.

Key Quote: “Cai von Rumohr, an aerospace industry analyst … said the Emirates is considering the Boeing 787 instead of the Airbus 350 and has already committed to the Boeing 777 due to its superior fuel economy versus the Airbus 340. … But given the Dubai ports furor, von Rumohr said, ‘I assume it’s something Airbus would try to use in their favor.’”

But Boeing’s biggest backers in Congress seem not so concerned, Curry reported.

Key Quote 1: “When asked about the potentially chilling effect on Boeing and other exporters if Congress kills the Dubai ports deal, Washington’s senior senator, Democrat Patty Murray, said, ‘I have not heard that concern personally at all. What I have heard is that people are concerned about port security.’”

Key Quote 2: “As for Boeing employees, (U.S. Rep. Norm) Dicks said, ‘Boeing is going to continue to survive with or without a future order from the U.A.E. In fact, they’re having a hard time producing all the planes people want right now.’”