By Jim Cardle President & CEO of Texas Citizen Action Network
Published: 03-06-08
On Friday shortly after the markets closed down significantly on news of a continued pullback in consumer spending and a week of headlines dominated by fears of inflation and a souring economy the United States Air Force slapped its shareholders – the American citizen – in the face by awarding a $40 billion contract to an overseas conglomerate anchored by French company Airbus.
The competing aircraft – made right here at home by American aviation stalwart Boeing – is based on the popular and successful 767 platform and would have supported a staggering 44000 American jobs across the entire country.
Instead Americans are left wondering how their military leadership could choose to purchase an airplane with Euros rather than good ol’ American Dollars.
If the selection stands the Air Force will be out-sourcing jobs to Europe while placing our wartime capabilities at the mercy of decision-makers in Paris.
Boeing’s aircraft is designed and built at home and uses 85 percent U.S. manufactured content while the Airbus would be mostly manufactured in Europe and merely “finished out” in the Alabama. This is clearly a mistake that will affect our domestic economy and our national security for decades to come.
Boeing was the obvious choice for this contract for many reasons. To begin with the differences between the tankers offered by each side are critical to mission capabilities.
The main issue seems to be size. The contract request originally called for tankers the size of Boeing’s KC-767. The parameters were later changed and manipulated simply to allow the much larger Airbus KC-30 to compete. Shouldn’t the aircraft meet the mission rather than having the mission adjusted to accommodate the aircraft?
This poor decision will hit Texas particularly hard.
Boeing currently employs over 5000 Texans across the Lone Star State including San Antonio Houston El Paso Dallas Abilene and elsewhere. It has invested millions in infrastructure and has given back to local communities. It spreads its work among 208 Texas-based suppliers.
If chosen the Boeing tanker would support 44000 U.S. jobs and have a total U.S. content of 85. EADS short for European Aeronautic Defense & Space Co is a French airliner company that wants to get into the American military market. The European Aeronautic Defense & Space Co partnered Northrop Grumman Corp. The EADS plane would support only 20000 to 25000 U.S. jobs and barely half of its components would be of U.S. origin.
Giving them this contract could cost the U.S. economy approximately $1 billion a year.
Building Boeing’s tanker would support 3000 jobs in Texas and bring $125 million a year into our state. They have specifically designated 13 Texas aerospace companies as potential participants in this project.
It’s only natural that Texas would play a big role in building this tanker. We’ve been leading the way in aerospace and defense practically from the beginning of manned flight involved in everything from bi-planes to lunar landers.
The Texas aerospace and aviation industry employs about 200000 people and pays them above-average wages. Keeping contracts like this one in the United States & Texas not only helps safeguard our national defense capabilities but also supports a lot of Texas families.
In addition to the economic impact Boeing’s tanker would have it would save taxpayers a bundle of money as well. It’s smaller than the EADS plane and although it far exceeds specifications and more than triples our current capabilities would use less fuel and cost less to maintain.
A University of Texas at San Antonio study estimates Boeing’s impact on Texas’ economy could generate $2.1 billion in output between 2009 and 2013. But there’s really no telling how this loss will affect that number.
Texas residents should be outraged at this decision and our Congressional delegation should not let it stand without a challenge.
We need to scrutinize the selection process and figured out what went wrong; it may even be possible to reverse the decision.
Texas stands to lose too much from this contract and I fear the U.S. military stands to lose even more if the Airbus craft (and especially the foreign government supporting it) is not up to the mission.
James B. Cardle is President & CEO of the Texas Citizen Action Network a dynamic community of Texas leaders who develop ideas brainstorm solutions & acquire the skills necessary to impact the public policy decision making process in Texas. He can be reached by visiting www.CitizenActionNetwork.com or by e-mailing him at lessgovt@austin.rr.com
