Northrup Grumman win huge Air Force tanker bid

[Werner]

The $40 billion contract will replace the ageing KC-135 fleet with a version of the Airbus A330 to be known as the KC-45A.

I hope the average European doesn't discover how much of their taxes go into providing this aircraft to the US Government. They might be a tad upset.

[Werner]

Since the Boeing 767 version is the most efficient wide-body at any price and has payload fuel costs 24% below the A330 version, one can only assume the decision was taken because the EU price offsets were dramatic and greatly benefit the USAF as well as the US economy at European taxpayer expense.

http://www.globalsecurity.org/military/ ... t/kc-x.htm

Since the aircraft is to be built in Mobile, Alabama and there is a stated US parts content, there is little profit to Airbus apart from any license fees. This aircraft is expected to generate 25,000 jobs in non-union "right to work" states.

This is an atomic explosion in the aviation industry. The tanker was one of the few "plumb" military projects to be gained for military contractors in the "Bush Years", which have seen system after system canceled to pay for the War on Terror in the face of a parsimonious Congress, unwilling to spend on military procurement funds they would rather dispense on welfare programs and educational programs which benefit the largest public employee unions in the USA.

I would go so far as to say that the Congressional delegations representing the states where Boeing is located will shortly be demanding corporate welfare to keep Boeing's military arm in business.

[Mark Petersen]

The scandal has cost Boeing big time

[Tim Jacobs]

I'll let you guys argue the politics, the fact is the last -135 airframe rolled out of the plant 44 years ago. They are old, tired and seriously need replacement. I was a KC-135A mechanic for several years back in the early '80s. They were already tired then. Even after re-engining and all the improvements made, they are still very old.

[Werner]

What, me worry? I see this as a big win for the US taxpayer. Looks to me like the average European is going to pay about 20%-25% the cost of buying these big, healthy aircraft, and loser Boeing has enough lobbyists to force the US Government to give them some of the savings in makework projects to keep the company healthy.

The only thing that could have made the planes cheaper would be if a judge had split up the defense industry into a couple dozen separate companies about 1995. I could never figure out why Clinton never did that.

Worked for the phone company. My $300 phone bill is now $24.

[Jack Ray]

I suppose the Doreen Drunyon affair has a little to do with this decision.

Still, it is too bad. The Boeing wing design is supposed to be much more efficient and I have this bad habit of preferring home grown for military purchases.

However, maybe this contract will have some positive side effects:
1) More Globemaster transports?
2) Other manufacturers will work harder to get contracts (remember competition?)
3) Boeing's top management will be fired?

It is almost certain that this decision will be contested.

Jack

[Werner]

3) Boeing's top management will be fired?

Jack

Gee, maybe they could use their considerable skills and access to capital to form a new company.

They could call it something like "Douglas-Chicago"....

[Jack Ray]

3) Boeing's top management will be fired?

Jack

Gee, maybe they could use their considerable skills and access to capital to form a new company.

They could call it something like "Douglas-Chicago"....

Perhaps Douglas-Chicago could get into sub-prime mortages. I hear that sub-primes are latest thing for making loads of cash...

Jack

[Werner]

Actually, I hear there's a real opening for a bug-free PC operating system.

With the new sales tax rate in Chicago (now highest in the nation), there ought to be a value in a Peapod-like business that does any shopping you need in the more distant counties and zooming back to Crook County with the goods;[

[Mark Petersen]

Werner, the Crook County sheriffs dept will have roadblocks and sting operations going that will look like the Wisconsin State Patrol back during the oleo smuggling days.