Blog Post from Organization for International Investment
Pot, Kettle, Boeing....
March 13, 2008
Written by: Todd Malan
Earlier this month, the international consortium of Northrup-Gruman, EADS and GE beat the international consortium of Boeing, Alenia and Pratt & Whitney for the Air Force's $40 billion tanker contract. Unfortunately, the understandably disappointed Boeing led team seems to be engaging in and promoting political rhetoric that belies the realities of the aerospace industry: anyone making an airplane platform buys a significant amount of parts from suppliers around the world. Boeing's web site outlines how much the company sources from China across all its major products. Additionally, you can't be in that business and not have significant customers in the rest of the world - Boeing derives 70% of its revenue outside the U.S. and is America's largest exporter. As a global company (not a U.S. company) it seems really dangerous for Boeing to fan the flames of isolationist rhetoric in their advocacy regarding the tanker deal. Do they really want Congress to overturn the procurement? Boeing lobbyists would be camped out at the U.S. Trade Representatives office if another countries parliament overturned a fair procurement for political reasons. Congress created our procurement process to ensure the U.S. government buys the best products at the best value. It's not a jobs program. Boeing and their supporters need to temper their disappointment and realize they are playing with a double edged sword....
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