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Thread: Airbus's U.S. Plan Is a Long-Term Gamble

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    Airbus's U.S. Plan Is a Long-Term Gamble

    Airbus, the European plane maker, plans to build its first U.S. assembly line in Mobile, Alabama, in an aggressive foray into the world’s largest market for single-aisle airplanes, several people with knowledge of the plan have said.

    The plan, which has not yet been approved by the board of European Aeronautic Defense & Space, Airbus’s parent company, calls for an investment of several hundred million dollars in a plant on
    Boeing’s home turf that could eventually assemble dozens of Airbus’s popular 150-seat A320 jets each year. Details are expected to be announced by the new Airbus chief executive, Fabrice Brégier, at a news conference in Mobile on Monday, said the people, who spoke on condition of anonymity because the plan was confidential.

    http://www.nytimes.com/2012/06/29/bu...pagewanted=all


    Bubba for the win once again! More high-tech manufacturing for the South. Thank you, Jesus--and Airbus!


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    Re: Airbus's U.S. Plan Is a Long-Term Gamble

    This is gonna get blocked I bet. Boeing is to big and powerful to allow its only real competitor to set up shop in its back yard. And if not blocked, then the subsidies to Boeing will increase.... in other words, the average American is screwed regardless.
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    Re: Airbus's U.S. Plan Is a Long-Term Gamble

    Quote Originally Posted by PeteEU View Post
    This is gonna get blocked I bet. Boeing is to big and powerful to allow its only real competitor to set up shop in its back yard. And if not blocked, then the subsidies to Boeing will increase.... in other words, the average American is screwed regardless.
    I don't see how Boeing can stop it, but I have to give the company credit for being nothing short of creative. In any case, I'm more concerned about screams coming from Europe about jobs leaving the continent, even though the idea is to expand Airbus' penetration into the U.S. airliner market.
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    Re: Airbus's U.S. Plan Is a Long-Term Gamble

    Quote Originally Posted by Ahlevah View Post
    I don't see how Boeing can stop it, but I have to give the company credit for being nothing short of creative. In any case, I'm more concerned about screams coming from Europe about jobs leaving the continent, even though the idea is to expand Airbus' penetration into the U.S. airliner market.
    Boeing had its lackeys in Congress block the tanker deal .. twice when it was awarded to Airbus.. do you really think that this will be any different?
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    Re: Airbus's U.S. Plan Is a Long-Term Gamble

    Quote Originally Posted by PeteEU View Post
    Boeing had its lackeys in Congress block the tanker deal .. twice when it was awarded to Airbus.. do you really think that this will be any different?
    Congress didn't block the tanker deal, it was never awarded to Airbus in the first place. The Air Force went with Boeing "based on the superiority of its design, technology, delivery schedule, and overall risk reduction plan." Airbus tried and failed to get them to change their minds.

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    I welcome an Airbus facility in the U.S. - as long as they're ethical in their business practices of course.

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    Re: Airbus's U.S. Plan Is a Long-Term Gamble

    Welcome Airbus. Maybe now defense contracts can begin to flow to AB.

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    Re: Airbus's U.S. Plan Is a Long-Term Gamble

    Quote Originally Posted by PeteEU View Post
    Boeing had its lackeys in Congress block the tanker deal .. twice when it was awarded to Airbus.. do you really think that this will be any different?
    Yes this is very different from an American perspective. This action would directly take jobs out of Europe and move them to the U.S. Actually I am surprised you think it will be blocked here versus over in Europe.

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    Re: Airbus's U.S. Plan Is a Long-Term Gamble

    Quote Originally Posted by Binary_Digit View Post
    Congress didn't block the tanker deal, it was never awarded to Airbus in the first place. The Air Force went with Boeing "based on the superiority of its design, technology, delivery schedule, and overall risk reduction plan." Airbus tried and failed to get them to change their minds.

    Source

    I welcome an Airbus facility in the U.S. - as long as they're ethical in their business practices of course.
    Bull****. The tanker deal is an epic scandal of national bias.

    First Boeing was award the contact but it was then cancelled when people found out that there was massive corruption involved in getting the deal.

    Then Airbus got the contract after another round of bidding, but that pissed of Congress so much that investigations and what not were started and the deal yet again was cancelled.

    Finally Boeing was awarded the contact yet again, in large part to "friendly" congressional nationalism.
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    Re: Airbus's U.S. Plan Is a Long-Term Gamble

    Quote Originally Posted by washunut View Post
    Yes this is very different from an American perspective. This action would directly take jobs out of Europe and move them to the U.S. Actually I am surprised you think it will be blocked here versus over in Europe.
    Has nothing to do with jobs. Boeing could give a rats ass about US jobs. Having your own main competitor in your backyard and biggest market, producing it jets at a lower price than normal will be a huge problem for Boeing. And then there is the technology aspect.. Airbus has been ahead here for years, and ahead in sales as well, while Boeing has been riddled with delays to its new aircraft plus various scandals, including the whole tanker thing.

    In the end, Airbus might be allowed to set up shop, but it will come at a cost to the US taxpayer since Boeing will need to be compensated some how.. so expect to see "cost overruns" of epic proportions on say the tanker deal and other military aircraft.

    Also it is not "jobs lost" in Europe per say... since Airbus is lacking capacity some what since it is outselling Boeing.
    Last edited by PeteEU; 06-30-12 at 01:45 PM.
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    Re: Airbus's U.S. Plan Is a Long-Term Gamble

    Quote Originally Posted by Binary_Digit View Post
    Congress didn't block the tanker deal, it was never awarded to Airbus in the first place. The Air Force went with Boeing "based on the superiority of its design, technology, delivery schedule, and overall risk reduction plan." Airbus tried and failed to get them to change their minds.

    Source

    I welcome an Airbus facility in the U.S. - as long as they're ethical in their business practices of course.
    Here's what happened. The Air Force originally was going to lease Boeing tankers. Then there was a bid-rigging scandal. Heads rolled. (The number-two procurement official at the Pentagon and Boeing's CFO went to prison. The company's CEO, Phil Condit, resigned.) Congress had the contract pulled. The Air Force then decided it wanted to buy tankers instead. Northrop-Grumman and Airbus' parent, EADS, submitted a joint bid to assemble tankers in Mobile, Alabama based on an Airbus design. Northrop-EADS won because, frankly, the EADS tanker was a better plane. (It had a larger capacity and could fly further.) Boeing cried foul, said the contract criteria were unclear, and beat the congressional war drums. Congress put enough heat on the Air Force until it finally gave in and said it would put the contract up for bid for a third time. Boeing won. Now it looks like EADS is still interested in gaining a foothold in North America in order to sell commercial aircraft to U.S. airlines, which fly about 80% Boeing aircraft.
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