Odds and Ends: Cargolux, Qatar to split; P-8A and MAX; More on Sequestration; Dodging that depth charge

Cargolux, Qatar Airways to split: Several news stories report that Qatar Airways is going to dump its 35% stake in Cargolux. The stories indicate a disagreement in the direction of Cargolux. This story is the most detailed, although it’s now a month old  and out-of-date.

The day before the news broke last week, we were told that Qatar wanted to set up a Cargolux hub in Doha and decline more deliveries of Boeing 747-8Fs to Cargolux in favor of using Qatar Airways’ Boeing 777Fs. This tracks similarly with the month-old story linked above. Cargolux has eight 748Fs on order.

There is a general softness in global air cargo traffic that is causing some cargo airlines to consider deferring 748Fs as well, complicating Cargolux’s viability.

We were also told there are sharp personality differences between the Qatar and Cargolux board members that aggravated relations between the two companies.

P-8A and MAX: Bloomberg has this story that looks at an angle about the Boeing 737 MAX that hasn’t been discussed before: Boeing will stick with the NG-based P-8A Poseidon and not shift to the MAX.

Sequestration: We had a recent think piece on how sequestration might not be a bad thing in the long run because it would force the Pentagon to truly re-think its global defense strategy. This piece in Defense News, an authoritative trade publication, picks up a similar theme.

Dodging that depth charge: EADS wanted to merge with BAE Systems. BAE is the prime contractor of the UK’s nuclear submarine fleet. Read this story about the HMS Astute. EADS may well have dodged that bullet–er, depth charge.

17 comments on “Odds and Ends: Cargolux, Qatar to split; P-8A and MAX; More on Sequestration; Dodging that depth charge

  1. Re re-engining the P-8A its performance and operating costs vs breaking up the contract and de standization.

    Same story for the 767 tanker. After having ditched EADS out of competition by changing the rules and winning with a matching minimum proposal I expected DoD/Congress/Boeing to work to an optimal aircraft with better engines (GENX, GP7000) winglets/extensions, maybe a -300 fuselage etc.

    • Well, with the way the “money” is been cut to the Pentagon this day, I will say that possibility would be next to zero. Unless, the cut the number of planes down to about a dozen. Heck, there is a possibility that this whole tanker contract could be cancelled. So you can relax Keesje, Boeing ain’t gonna get much out of this contract other than keeping
      Airbus out of the tanker deal.

    • Exactly what rules did Boeing change to “ditch” EADS out of the competition? Once again, you don’t know jack. It was a fair competition, Boeing bid lower, DEAL with it and stop whining.

      There is no mechanism in the contracts to change engines. If the government wanted to do so they would have to amend the contracts, which they won’t do. The units being delivered are exactly per the contracts. No more, no less.

      • The competition was fair and based on best meeting requirements and value for money. Everyone agreed and praised the transparency of the second round. Until EADS/NG won. That was unacceptable. Congress made sure the selection was overturned.
        The new, changed rules were basicly: meeting the minimum requirements at minimal costs. The minimal requirements being matching the KC767 capabilities. All the extras the KC-30 offers, would no longer be counted in the selection process.
        NG saw the writing on the wall and left the competition. EADS too saw what was happening but stayed in for future considerations and didn’t protest the set outcome for longer term PR considerations. A European firm winning KC-X was simply a bridge to far. Pigs will fly before Boeing and its supporters will ever be willing to face the truth, but the rest of the world saw, smiled and moved on.

      • Keesje, EADS lost the competition because they couldn’t use their primary military contract marketing tool on this side of Atlantic (Bribes). :)

  2. Sequestration is a pretty rotten tool to cut the budget. It’s a chainsaw, where a scalple is needed. There is plenty that the DoD wants to cut, that the Admirals and Generals have already said should go. Sequestration doesn’t accomplish it though.

      • It’s not a Sword of Damocles that the press makes it out to be. In fact, if it were to happen it wouldn’t be the end of the world.

        However, it would likely lead to a further downgrade of US debt rating as it would show that the the Congress and Presidency are incapable of working together. I also think it would very likely lead to another recession in the US, and by extension the rest of the world, which would certainly not be good.

        In the end, I think that calmer heads will prevail and a more rational deal with be struck, if not before the end of the year, certainly early in the next Congress.

  3. Observer :
    Keesje, EADS lost the competition because they couldn’t use their primary military contract marketing tool on this side of Atlantic (Bribes).

    n

    Thats cynical to say in regard to the tanker selection. Google Boeing Tanker Scandal, Condit, Sears.. http://www.justice.gov/opa/pr/2006/June/06_civ_412.html. Boeing payed enormous to stop federal agents digging on, exposing more and more. Imagine EADS has done this. Could theey have won a few trs later. Be honest.

  4. Observer :
    Keesje, EADS lost the competition because they couldn’t use their primary military contract marketing tool on this side of Atlantic (Bribes).

    That from a nation that has made bribes aka “campaign contributions” the established way of doing business.with the government. amusing.

    • Remind me again, whose headquarters was just recently raided over Eurofighter shenanigans? Oh, that’s right… EADS. Seems that EADS may have to face the music like BAE did over Foreign Corrupt Practices Act violations.

      • If you don’t go after corruption ( or commerce-criminal behaviour in general ) you won’t find any.
        The US war on terror and illegal aliens bound law enforcement/supervisory forces in vast numbers.
        Most recent and prominent result : the longbrewing US credit fraud crisis that culminated 2008 with major global repercussion.

  5. keesje :
    The competition was fair and based on best meeting requirements and value for money. Everyone agreed and praised the transparency of the second round. Until EADS/NG won. That was unacceptable. Congress made sure the selection was overturned.
    The new, changed rules were basicly: meeting the minimum requirements at minimal costs. The minimal requirements being matching the KC767 capabilities. All the extras the KC-30 offers, would no longer be counted in the selection process.
    NG saw the writing on the wall and left the competition. EADS too saw what was happening but stayed in for future considerations and didn’t protest the set outcome for longer term PR considerations. A European firm winning KC-X was simply a bridge to far. Pigs will fly before Boeing and its supporters will ever be willing to face the truth, but the rest of the world saw, smiled and moved on.

    Your characterization of the overturn of the A330 selection is, typical of you, wrong. Boeing protested because EADS’ selection was not according to the rules of the competition. The protest was upheld. The law was followed. Even EADS and NOC admitted that. EADS was given another opportunity to win, but they bid too high. It’s as simple as that Boeing bid lower. DEAL WITH IT.

    You have no skin in the game anyway, why do you care? Why don’t you “move on”?

    • You are absolutely right Howard. I used incorrect information. The best won, simple as that and everybody is very proud. Just look ahead, why make a fuss ? Let’s move on.

  6. This place is funny… you put a little smile face after your comment, indicating humor. And its like walking into a room and turning the On and watching the roaches scatter. Too funny!

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