Sunday, March 2, 2008

Buy Now, Pay Later

The Air Force has just announced that it is ready to award $35 billion in new military contracts for the delivery of new, state of the art refueling tanker aircraft.

The decision on who gets the award comes as a result of a competitive bid process which, on the surface, seems fair and right.

Sadly though, the Boeing Aircraft Company, THE icon of the U.S. civilian and military aircraft industry, will not get the award. Instead, only a small portion will be awarded to an American company, McDonnell Douglas, and the bulk of the award will go to Europe's Airbus.

Now let me say first, that I totally agree with the need to conduct these huge expeditures in a competitive process. It also good that two or more share in the award. But why should we ever put a non-U.S. entity ahead of an American concern especially in high-technology areas?

So what if it costs the U.S. a bit more? There has to be more than that to be gained by keeping those contracts in the country. Jobs, technology, and taxes to just name the obvious. Are we ready to give everything away for a few dollars? What's next; some Chinese or Indian fighter jet, just because they can be made cheaper? Our auto industry is well on it's way there now. Don't think it can't happen to aircraft. Even Airbus had better watch out then. Once they have the technology, there's an indian more than willing to build aircraft for $1.75 a day.

How close are we getting to manufacturing nothing of significance in this country? It may be closer than we think.

And when did Washington suddenly become so cost-conscious? They probably p*** away more money in a single day, than what's in the penalty of buying from Boeing on this contract.

It is past the time when we need to be more protectionist with our key industries. The longer we wait, the more parity we give to the rest of the world and ultimately, it will cost us a lot more than this.

No comments: