It will be a big week for EADS and Boeing on a variety of topics:
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.
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:
Boeing just issued this press release:
EVERETT, Wash., Jan. 18, 2011 /PRNewswire/ — Boeing (NYSE:BA – News) announced today that it expects delivery of the first 787 Dreamliner in the third quarter of this year. The new delivery date reflects the impact of an in-flight incident during testing last November and includes the time required to produce, install and test updated software and new electrical power distribution panels in the flight test and production airplanes.
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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.
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.
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.
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Boeing is expected to decide this year to proceed with not one, but two new models to replace the 737, according to a prediction made by the aerospace analyst at Buckingham Research.
If Buckingham is correct–and it was the first we’re aware of to forecast Boeing would forego re-engining the 737–this would shake things up: Airbus believes Boeing would be “silly” to come out with a new airplane in this decade because officials don’t think engine and airframe technology is advanced enough to do so, which is why Airbus is going with an interim solution in its New Engine Option (NEO) program.
Boeing believes technology will be available by the end of this decade.
Who will be right will only be known a decade down the road.
Although the research note focuses on the 737 replacement, it predicts Boeing is putting off enhancing the 777 for one-two years or more because it believes Airbus will run into serious delays on the A350-1000, the competitor to the highly successful (and profitable) 777-300ER.
Here is a synopsis from the Buckingham note:
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.
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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.