Leeham News and Analysis
There's more to real news than a news release.
EADS had Boeing data for a month, Sen. Cantwell charges; EADS denies it
- Side note: While EADS and Boeing fight over the USAF tanker contract, and neither one is capable of delivering their respective tankers on time, IAI Bedek of Israel completed conversion of the Boeing 767-200ER (the same airplane Boeing is using) into a tanker in short time and it is now offering the the airplane for lease to other countries. See this Flight Global article.
In a press conference January 20 in Everett (WA) at the Boeing factory, Sen. Maria Cantwell (D-Boeing/WA) leveled a charge against EADS which, if true, would cast a huge question over the handling of proprietary data mistakenly provided by the USAF to EADS and Boeing.
EADS January 21 denied Cantwell’s allegation that EADS had the data for more than a month. The allegation, if it were true, has all sorts of implications, and all of them bad for EADS. Here is Cantwell’s allegation:
What steps were taken to ensure EADS did not gain an unfair competitive advantage by having Boeing data for more than a month before the investigation was completed by the Air Force?
We talked with Cantwell’s press secretary, Janeen Heath, January 22 to ask the basis on the allegation that EADS had the information for more than a month. Heath said, “We received that information from a reliable source, and that’s a question to be answered at the [January 27] hearing.” We asked if the information came from the Air Force or from Boeing, and Heath said she did not have this information.
Here is EADS’ denial, with respect to the charge EADS had the Boeing data for more than a month:
Responsible members of the defense industry understand that when someone becomes aware that they’re in possession of competition sensitive information they must immediately secure it, protect it, and return it to the customer. This was done by us, and according to the USAF, apparently by Boeing as well.
The assertion that EADS held competition sensitive information for over a month is simply untrue and flatly contradicted by the Air Force’s forensic investigation and analysis.
This latest event reinforces our previously stated view that a hearing by Sen. Carl Levin (referred to in the press release below) is appropriate. The Air Force, EADS and Boeing say they each handled the situation according to federal law and Air Force rules, but in the absence of a clear, detailed and full disclosure of the timeline of events and procedures followed, the cloud that hangs over this procurement is dark and threatens the entire process. We believe that all three parties must testify before Levin’s committee to get all the facts and information out in the open. Once this is done, let the chips fall where they may–if there is any reason for any to fall at all.
Below is Cantwell’s full press release. The bold facing is hers. The Levin hearing is January 27 at 9:30 AM EST.
KC-30A for RAAF involved in in-flight incident, refueling boom lost
Australian Aviation has this story about an in-flight incident during a refueling test between the Airbus KC-30A and an F-16. Readers will recall a Boeing KC-767J for Japan Air Defense Services had an incident in which the boom wouldn’t retract for landing and was damaged on the runway, the point being both programs have now suffered incidents.
But the KC-30A incident will likely further delay delivery of the plane to the RAAF; it is already two years late. The timing couldn’t be worse for EADS, with the contract award for the USAF only weeks away.
- Bloomberg News followed with this story.
- FlightGlobal has this story.
- Meanwhile, there is this story that Boeing is taking a pass on bidding for the Indian government tanker contract. A second story says uncertainty over the USAF contract outcome is why. A third story has more detail.
Defence Statement, 20 January 2011 from the RAAF:
Read more
Odds and ends: More Airbus NEO orders soon, engine selections shortly; tanker slips again
Odds and ends:
- More Airbus NEO orders are likely within the next few weeks, including from the US and Asia;
- Indigo is expected to make its engine selection for its A320neo within the next month or so, and it’s a real competition between GE/CFM and PW for the LEAP-X and Geared Turbo Fan;
- A major German bank may shun financing the A320neo, according to Bloomberg;
- Boeing is now saying there is only a 2%-3% direct operating cost difference between the 737NG enhanced model and the A320neo, a gap Boeing figures it can close by the time NEO enters service in 2016;
- Boeing thinks the A350-1000 will require enough changes compared with the -800/900 models that the -1000 will slip to 2019 EIS; Read more
Countdown on KC-X tanker award
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EADS CEO Louis Gallois went public today in Europe with his prediction that the USAF will award a tanker contract next month. The best and final bid will be submitted this month.
We previously noted that the final bids were due this month and a contract award expected next month.
Meanwhile, here is an interesting story on the tanker from KING5 TV in Seattle, with this piece.
As readers know, the competition is a price shoot-out. As the KING story notes, Boeing continues to be worried about the benefit EADS has from subsidies found to be illegal by the WTO on the ability to under-price Boeing, but as we noted in this post last year, WTO may not have the effect Boeing fears; the withdrawal of Northrop Grumman as a partner to EADS has a much larger benefit to EADS’ ability to price the airplane.
Boeing expects solid 777 order stream
Here’s a story we did for Commercial Aviation Online. Comments are still closed. Comments are re-opened but moderated. Read our new Comment policies.
Boeing 777 orders on the cards
| Date: | 11/01/2011 09:42 |
| Source: | Commercial Aviation Online |
| Location: | Seattle |
| By: | Scott Hamilton |
Boeing is likely to have a very good next few months for its 777 line.
CAO has learned that that company is probably going to announce several major orders for the airplane, predominately if not entirely for the 777-300ER. One order is said to be for 20 777-300ERs and could be announced within the next few weeks. As many as four major orders are anticipated in the next few months, CAO is told.
Focus on Rolls-Royce Trent engines
Plane Talking has an interesting think piece about the Rolls-Royce Trent 900 engine that powers the Qantas Airbus A380.
As readers know, a Trent 900 had an uncontained failure on QF32 that severely damaged the A380. Qantas still hasn’t returned the A380 fleet to full service while questions about the Trent 900 remain unresolved.
Rolls-Royce has been uncommunicative to Qantas, and to Airbus, according to both companies, adding difficulties to the recovery of the program.
This portends something that has greater implications.
US helps Boeing–and Europe helps Airbus. So what?
Notice: All right, Everyone, given the persistent personal stuff in the Comments, we have closed Comments for this posting.
Wikileaks struck again with cables revealing US diplomats and the President support Boeing is sales efforts. The cables made a lot of news headlines, with The Seattle Times pickup of a New York Times piece typical.
Our reaction is, So what?
That diplomats help Boeing and European officials help Airbus is nothing new nor surprising to those of us in aviation. Heads-of-State do it, too. It happened for McDonnell Douglas, with a sale for MD-11s and MD-90s to Saudi Arabia. Happened with Israel and Boeing. Landing slots for Airbus sales? No surprise here, either.
Much ado about nothing, in our view.
Looking ahead for the tanker award
Will it ever end?
This is the question about the interminable KC-X tanker competition.
Unofficial word is now that the USAF is to announce its award in February, after slipping from January, December, November, October and August.
US Sen. Carl Levin announced that he will hold a hearing by February. 1 into the snafu by the USAF over sending Boeing and EADS information about the performance of each other’s tanker. Levin, holding the hearing at the request of Sen. Maria Cantwell (D-Boeing/WA), will try and determine if this is a harmless or fatal error to the procurement process. We have written before that mistakes like this happen and the government has set procedures for handling such errors, but in the highly charged competition, Boeing is taking advantage of the mistake to lay the groundwork for a protest should it lose.
Senate hearing in tanker snafu appropriate
US Sen. Carl Levin announced yesterday that he will hold a hearing by Feb. 1 into the snafu by the USAF over sending Boeing and EADS information about each other’s KC-X tanker submission.
We think this is appropriate, as we have written before. The Air Force and EADS must come forward with a detailed timeline and information about the what-when-where-why about this. So that there is a full airing, so does Boeing, though let’s be clear: the burden here appears to be on the USAF and EADS.