| HeraldNet - Snohomish County's online news source |
 FRIDAY, MARCH 12, 2010 9:31 am |
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 Boeing engineers elect new union president in close race Boeing's engineers union has a new president, who was elected by a margin of five votes. Tom McCarty was elected as the new president of the Society of Professional Engineering Employees in Aerospace, the union announced last night. McCarty beat out his closest competitor by just five votes. Because of that narrow margin of victory, the other candidates have a right to appeal the vote count. If not, McCarty's two-year term will begin March 24. McCarty succeeds Cynthia Cole as president of the union, which represents more than 20,000 engineers and technical workers at Boeing. Only about 14 percent of eligible SPEEA members voted in the election. McCarty won 769 votes. Ryan Rule received 764 votes; Larry Marrell, 639; Joel Funfar, 630. SPEEA's labor contract with Boeing here in the Puget Sound region expires in late 2012. ... [Read More] E-mail | Print | Comment Boeing 747-8 reaches flight test milestone The Boeing Co.'s 747-8 Freighter has completed initial airworthiness testing -- an early milestone in flight testing. As a result, Boeing flight test engineers can be on board and the remaining two flight test 747-8s can enter flight. Boeing hopes to deliver its first 747-8 Freighter later this year. "The airplane is performing as expected in the initial stages of flight test," said Mo Yahyavi, general manager of Boeing's 747 program. "That's a tribute to the men and women who helped design and build this airplane." Since the first flight in early February, the aircraft has been on 13 flights and logged in 33 hours of flight. Pilots have taken the airplane to an altitude of 30,000 feet and a speed of Mach .65. Initial stall tests and other dynamic maneuvers have been run, as well as an extensive checkout of the airplane's systems. "This is a critical milestone in our test and certification plan," said Andy Hammer, test program manager for the 747-8. "With the addition of the other two airplanes in the near future, the test program will ramp up significantly." In the weeks ahead, the 747-8 Freighter will reach an altitude of more than 43,000 feet and a speed of Mach .97. Boeing will conduct roughly 3,700 hours of testing on its 747-8 Freighters before delivering the first jumbo jet in the fourth quarter. Boeing has won 76 orders for its new 747-8 Freighter. ... [Read More] E-mail | Print | Comment
Boeing tanker creates up to 70k U.S. jobs – study The Boeing Co.'s tanker will create 10 times as many U.S. jobs as its former competitor's would have, according to a study paid for by Boeing. The study by consulting firm Sonecon was funded by Boeing before its rival, duo Northrop Grumman and EADS, withdrew from a $35 billion contest to supply the Air Force with aerial refueling tankers. Boeing's tanker, based on the Everett-built 767 jet, will create 62,606 to 70,706 jobs in the United States over the 20-year life of the contract, according to the study. The job figures in the report refer to direct positions only and do not include jobs created at suppliers or other indirect jobs. About 12,000 of the jobs will be in Washington state, Boeing reports separately. Boeing also says that 70 suppliers here in the state will work on its KC-767 tanker. “The great thing about our aerospace industrial base is that it translates into good jobs and long-term employment in Washington state and around the country,” said Sen. Maria Cantwell, D-Wash., in a statement. "Keeping the U.S. industrial base strong is also critical to our national security, particularly our aerospace industry.” The Northrop and EADS tanker, which would have been based on an Airbus A330 jet, would create only about 7,080 new jobs in this country, according ot the study. The parent company of Airbus, EADS planned to have its and Northrop's tanker assembled in Mobile, Ala. The Air Force hasn't outlined yet how it will proceed with Boeing as the sole bidder for the tanker contract. But Pentagon officials, who have tried two previous times to award a tanker contract, have said they will go forward with the contract even with only one bidder. Gov. Chris Gregoire sees the tanker contract as a way to put Americans back to work in a tough economic downturn. “Jobs are the way out of this recession," she said, in a statement. "The economic benefits of building a U.S. based tanker are significant—from hiring new workers, to creating new businesses to support those workers, to providing research and development that will lead us into the future." Consulting firm Sonecon was co-founded by Robert J. Shapiro, who served as undersecretary of commerce during the Clinton administration. Shapiro, along with Aparna Mathur, wrote the report for Boeing. ... [Read More] E-mail | Print | Comment Former Boeing exec. to get $1.5M for consulting The Boeing Co. will pay its former chief of commercial airplanes more than $800 an hour in consulting fees. Carson will consult for Boeing until March 2012 under the agreement which provides him with more than $1.5 million, according to regulatory filing. Carson will not work more than 75 hours each month, the SEC filing said. Last year, Boeing named Jim Albaugh the new president of its commercial airplanes division, retaining Carson until year's end. Under the agreement filed Wednesday, Carson will "agree to provide assistance to Boeing in the area of commercial airplane products and services" due to Carson's "extensive and unique knowledge and experience with Boeing’s commercial airplane business." ... [Read More] E-mail | Print | Comment EADS ‘has enough major risks on its hands' without tanker While government leaders in France and other countries in Europe allege U.S. favoritism in the Air Force tanker contract, opinion writers in Europe say otherwise. Spiegel has this roundup of editorials from major media outlets in Europe. A couple of favorites: From Frankfurter Allgemeine Zeitung: “The defense industry is far from being a normal business … but that should change. Today's practices cost taxpayers a lot of money and also lead to a situation in which armies seldom get the best products for their money -- up to and including toilet paper. But for Europeans to insinuate that everything about the Americans' defense bidding processes is particularly terrible, is hypocritical and nothing more than a political ritual." From the Financial Times Deutschland: “EADS already has enough major risks on its hands. There are still production problems with the A380 jumbo jet. And the company still needs to develop its A350 widebody model. Finally, the A400M disaster has blown a huge hole in the company's budget. EADS and Airbus have both shown in recent years that the companies have trouble completing major projects. Instead of jumping into a new adventure, the company should get a handle on its existing problems." ... [Read More] E-mail | Print | Comment French president to talk tankers with Obama Boeing Co. tankers will be among the topics that French President Nicolas Sarkozy will discuss with President Barack Obama later this month. Earlier this week, Boeing's rival for a $35 billion U.S. Air Force tanker contract, duo Northrop Grumman and EADS, dropped out of the contest. Northrop and EADS, the parent company of Airbus, decided their tanker, based on an Airbus A330, wouldn't win the contest. The duo felt the Air Force had skewed the competition to favor Boeing. Sarkozy's spokesman told the AP that the president has concerns whether the competition was run fairly. ... [Read More] E-mail | Print | Comment
Fallout in Europe over Air Force tanker contest The Obama administration is hearing from concerned European Union officials this morning over the U.S. Air Force tanker contest. In exiting the Air Force tanker contest yesterday, Northrop Grumman said the contest favored its rival, the Boeing Co. Northrop had partnered with EADS, the parent company of Airbus, to compete for the $35 billion contest. EU officials see this as potential protectionism, reports the AP. "It is highly regrettable that a major potential supplier would feel unable to bid for a contract of this type," said EU Trade Commissioner Karel De Gucht. "Open procurement markets guarantee better competition and better value for money for the taxpayer. Germany's top aerospace official separately contacted U.S. officials to ask them to rethink the tanker contest, reports Reuters. The European Commission said they'll keep an eye on the tanker contest. EADS president Louis Gallois told journalists: "We deeply regret that the U.S. Air Force will not get the best available airplane." Boeing's KC-767 is the sole tanker left in the contest and looks to be the Air Force's pick. ... [Read More] E-mail | Print | Comment Air Force could speed up Boeing tanker contract - report The Pentagon could speed up awarding a $35 billion aerial refueling tanker contract to the Boeing Co., a spokesman said Tuesday. Just yesterday, Boeing’s rival Northrop Grumman dropped out of the competition to supply the Air Force with 179 tankers. Boeing will use a tanker based on its Everett-built 767 jet. Northrop’s withdrawal from the contest leaves Boeing as the sole-bidder. Therefore, the Pentagon may be able to give Boeing the $35 billion deal sooner than it had expected, reports Reuters. “We may be in a position where we will be able to take a look at reducing some of those milestones," Pentagon spokesman Bryan Whitman told reporters. After releasing its final request for proposals last month, the Pentagon had given Boeing and Northrop 75 days to submit a bid. The Air Force planned to announce a winner in September. Despite Northrop’s decision not to bid, Boeing’s Jim Albaugh isn’t convinced the tanker drama is over. “It’s the longest running soap opera since ‘Days of Our Lives,’” Albaugh said Tuesday. “And I’m not sure we’ve seen the last episode yet.” Before being asked to lead Boeing’s commercial airplanes division last year, Albaugh presided over Boeing’s defense business. He’s been involved in Boeing’s efforts to win the tanker contest for the last nine years as the Air Force is on its third attempt at replacing its fleet of aging KC-135 tankers. ... [Read More] E-mail | Print | Comment Boeing's Albaugh expects 777 orders, rate decision soon The Boeing Co. should have some big news on its 777 jet as soon as next month. That's when Boeing will make its decision whether to increase production rates on the Everett-built twin aisle aircraft, said Jim Albaugh, president of Boeing Commercial Airplanes, in a speech this morning. Boeing made the decision last year to slash rates on the 777, starting in June, to deal with the slowdown in the market. But Albaugh said he expects some new orders on the 777 soon, which would sway Boeing to bump 777 production back up again in 2011. Likewise, Boeing also will announce a production rate decision on its single aisle 737 this summer and a decision on whether to re-engine that jet by year's end, Albaugh said. Here are a few highlights from Albaugh's presentation: On Boeing's 787 Dreamliner: Boeing is building two 787s per month and plans to increase that to 2.5 planes monthly in August. The company's goal is 10 monthly by 2013. Boeing has used up some of the 1.5 months of contingency it built into the 787 flight test program. But flight testing is going well with the 787 going Mach .97 during flutter tests, Albaugh said. The next 787 (airplane three) will join flight testing next Sunday On the Air Force tanker contest: “I've been working this for 9 years. It's the longest running soap opera since ‘Days of our Lives.' And I don't think we've seen the last episode.” On the 747-8: Boeing could have sold more 747s last year but believed they wouldn't be getting a good price for their new jumbo jets. On competition: “I want to re-establish the market leadership ... in 2011 we'll deliver more airplanes than the competitor.” ... [Read More] E-mail | Print | Comment
Rep. Sells seeks $2 million for aerospace training Rep. Mike Sells, D-Everett, is seeking $2 million from the state's general fund for aerospace training. The $2 million would go to the Washington Aerospace Training and Research Center at Paine Field here in Everett. The center was forged by Snohomish County and the Aerospace Futures Alliance last summer after the Legislature failed to fund one. Aerospace Futures Alliance has asked Edmonds Community College to oversee the training center, which could see its first students this spring. Aerospace training became a major concern for local and state lawmakers as the Boeing Co. looked at other sites last year for a second 787 production line. The company settled on South Carolina, rather than Everett, for that assembly line. While the training center at Paine Field is relying on local, state and federal funds to get started, eventually, its operators say it will be self-funded. Local aerospace companies in need of specific training can pay the center to provide it to their workers. And people looking to get into the aeropace field can enroll in courses there as well. ... [Read More] E-mail | Print | Comment Tanker Talk: Northrop ponders protest; Boeing takes no prisoners Analysts are weighing in on Boeing's announcement yesterday that it will offer the Air Force a tanker based on its Everett-built 767 commercial jet. Boeing has taken a blunt approach, rather than a diplomatic one, this time in drawing comparisons between its KC-767 and the KC-30 offered by Northrop Grumman and its partner EADS, notes Lexington Institute's Loren B. Thompson. “The shock of losing in the first round of competition has changed the company's whole approach to preserving its fifty-year aerial refueling franchise, so don't expect it to take any prisoners in the coming battle unless there is a need for hostages,” Thompson writes. While Northrop officials rationally realize the Air Force's $35 billion contest heavily favors Boeing's smaller tanker, emotionally they still want to fight it out, he writes. One way to fight Boeing is to give it a dose of its own medicine – launching a protest with the Government Accountability Office, as Boeing did the last time around. Analyst Scott Hamilton, with Leeham Co., writes on his blog that he's hearing more and more that Northrop will protest the Air Force's final requirements rather than bow out of the competition as the company previously threatened to do. ... [Read More] E-mail | Print | Comment Airbus' orders for February: Zero February was a cold, uneventful month for Airbus' order books. The European jet maker didn't win a single commercial jet order. That leaves its year-to-date tally at 11, behind the Boeing Co.'s two-month total of 57. Airbus officials told the Wall Street Journal that they still expect to win a total of 250 aircraft orders in 2010. The company delivered 67 jets so far this year. ... [Read More]
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Four governors support buying both Northrop and Boeing tankers Although the Pentagon has rejected the notion of buying two tankers for the Air Force's lucrative contract, that isn't stopping supporters from lobbying President Barack Obama. Politico reports that four governors have sent the president letters urging him to go forward with dual-procurement. The governors of Maryland, West Virginia, Mississippi and Ohio support a plan that would have both the Boeing Co. and Northrop Grumman building aerial refueling tankers for the Air Force. The dual-buy idea has gained more attention lately, thanks in part to the group Build Them Both, which surfaced shortly before the Air Force released its tanker requirements. Northrop's Randy Belote declined to tell Politico whether the defense contractor is funding the Build Them Both campaign. But Northrop and the advocacy group have similar messages: building two tankers would create 100,000 jobs. Northrop, which is working with EADS on the tanker, has said it may drop out of the Air Force competition. Company officials though the Air Force's initial requirements favored Boeing's KC-767 tanker. Northrop's Belote said the company is still working through the new requirements and will not make a decision this week whether it will remain in the competition. ... [Read More] E-mail | Print | Comment Boeing CEO pledges to keep tanker work in Everett, Sen. Murray says Sen. Patty Murray, D-Wash., recently sat down with Boeing CEO Jim McNerney. During the course of their discussion, Murray asked Boeing's chief several times about where its Air Force tanker will be built should Boeing win the $35 billion contract. The answer was consistent: Everett. Some workers here have worried that Boeing might assemble its tanker in South Carolina, following the company's decision to put a second line for its 787 commercial jet there. Murray suggested that Boeing's McNerney share that message with the company's unions here in Washington. Boeing is expected to build the tanker here in Everett with workers in Kansas installing the military applications. Everett Mayor Ray Stephanson called Boeing's selection of the 767 as its tanker platform "welcomed news." "The 767 is a proven plane, ready to be built immediately by our experienced workforce," Stephanson said. "This highly skilled workforce, in place and ready to perform, offers a big plus to Boeing and a significant cost savings to taxpayers." Washington Gov. Chris Gregoire released a joint statement with the eight governors of her coalition that supports Boeing's tanker efforts: "The 767 is a proven model, built at facilities with the world's best workforce, and is more efficient than any model that will be proposed by its competitors," the governors said. "This announcement confirms what the members of the U.S. Tanker 2010 Coalition have been saying - the Boeing proposal will give our men and women in the military the best tankers at the fairest price to the taxpayer, and will create the most jobs here in America." ... [Read More]
E-mail | Print | Comment Boeing sells two 737s to Somon Air Tajikistan-based Somon Air has ordered two Boeing Co. 737s, the companies announced today. The deal for the two 737-900 Extended Range jets is worth roughly $163 million at list prices. It's the first direct purchase by Somon Air of Boeing aircraft. “The Boeing Next-Generation 737 has proven to be a reliable and profitable component of our fleet," said Sherali Kabirov, board member of Somon Air. "With these additional airplanes we plan to broaden our network in the region." Somon Air is the country's first private full service carrier. The airline currently operates two 737-800s and flies from Dushanbe to cities in Russia, Germany, Turkey and the UAE. Somon Air's order brings Boeing's year-to-date order tally to 57. ... [Read More] E-mail | Print | Comment
Air traffic improved in January Both passenger and freight air traffic increased in January, compared to the previous year. But an industry group still predicts airlines will remain in the red in 2010. Passenger traffic increased 6.4 percent in January over the first month of 2009. And air freight traffic was up 28 percent, reporter the International Air Transport Association on Tuesday. Air traffic reached its low point in the early months of 2009. Therefore, the large year-over-year increases actually reflect a steady improvement in air traffic in the last several months rather than a huge boost in January 2010 traffic, the group reported. “Airlines have lost 2 to 3 years of growth,” said Giovanni Bisignani, IATA’s director general and CEO. “Demand is moving in the right direction. The 3 percent increase in freight volumes from December to January is particularly encouraging. We can start to see the future with some cautious optimism, but better volumes do not necessarily mean better profits.” IATA predicts airline losses in 2010 of $5.6 billion. ... [Read More] E-mail | Print | Comment EADS urges Northrop to bid on tanker – report Northrop Grumman is edging closer to a decision on whether it will bid on a $35 billion aerial refueling tanker deal with the U.S. Air Force. Its partner for the contract, EADS, is encouraging Northrop to bid, an unnamed source tells Reuters. Northrop officials had said the duo wouldn’t bid unless the Air Force made significant revisions to its tanker requirements when it released the final rules last week. The Air Force made only minor adjustments. Northrop and EADS are competing against the Boeing Co. for the chance to replace 179 Air Force tankers. Lawmakers and analysts agree the Air Force’s final requirements favor Boeing’s KC-767 tanker, which would be built here in Everett. Pentagon officials said last week that they have an alternative plan ready should Northrop drop out of the competition. They would prefer, however, to have two bids. And they urged Northrop to make a decision quickly whether it will participate. ... [Read More] E-mail | Print | Comment
Boeing's 787 program tops 200 hours of flight The Boeing Co.'s 787 program has surpassed the 200-hour mark of flight testing. The company noted the milestone on its 787 flight test Web site this morning. Boeing has three Dreamliner jets in flight testing, adding the latest 787 just last week. The first Dreamliner, which took its maiden flight Dec. 15, has flown more than 134 hours in the last two and half months. The second 787 has logged in more than 65 hours of flight time. Boeing said on Friday that its next 787, the third Dreamliner produced and the only one fitted with a partial interior, will fly in March rather than late February. ... [Read More] E-mail | Print | Comment
What will Northrop do about Air Force tanker contest? Politicians and industry observers alike seem to think the Boeing Co. has the edge in the Air Force aerial refueling tanker contest. That begs the obvious question: if Boeing’s going to win, what should competitor Northrop Grumman do? Defense analyst Loren B. Thompson with Lexington Institute takes a look at Northrop’s options in his latest blog entry. Thompson sees four options for Northrop: Bid: The defense contractor already has spent $200 million and four years in the tanker battle. To bid in a contest the company is more than likely going to lose, Northrop would spend another $100 million. File protest with GAO: Northrop has the option of filing a protest with the Government Accountability Office on the premise that the Air Force’s contest “is so skewed in Boeing's favor that it violates federal acquisition standards.” Not bid, then challenge contract’s lack of competition: If Northrop decides not to bid, then the Air Force likely will pick Boeing, based on the absence of any other choice. The government’s rules for acquisition only provide a few circumstances in which a sole-source contract can be awarded. “Northrop might contend that none of the required circumstances exist,” Thompson wrote. Complain to Congress: “Some members of Congress will undoubtedly find it suspicious that Northrop Grumman won the first round of tanker competition handily, but in the second round faces such bleak prospects that it may not bid at all,” Thompson wrote. However, he points out, Northrop, which depends more heavily on Republican backers in Congress, has fewer friends in Congress today than it did in 2008, when the Air Force initially awarded it the contract. ... [Read More] E-mail | Print | Comment Boeing, Northrop backers trade tanker jabs The Air Force’s $35 billion aerial refueling tanker contest is no stranger to controversy or flared tempers. Supporters of either the Boeing Co. or duo Northrop Grumman and EADS like to poke fun at the rival’s tanker. This morning, J.D. Crowe, cartoonist with Alabama’s Post-Register, gets in a dig at Boeing and its this cartoon. Northrop and EADS would assemble their tanker in Mobile, Ala. The Northrop-EADS tanker is based off an Airbus A330 jet. Airbus, of course, is headquartered in Toulouse, France. And that was the source of jesting by Rep. Jay Inslee, D-Wash., at today’s Prosperity Partnership luncheon in Seattle. Inslee said he’s pleased with the rules laid out by the Air Force this week. “The Air Force did not buckle under to the entreaties of the French,” Inslee said. “I look forward to giving the French the silver medal while we take home the gold” in the tanker contest, he said. ... [Read More] E-mail | Print | Comment Air Force: KC-X tanker to make first flight in 2012 The Air Force just released its final request for proposals for its $35 billion tanker contest this week. But Air Force officials already expect their new tanker to make its first flight in 2012. That is, of course, if the contest between Boeing Co. and duo Northrop Grumman and EADS goes smoothly. So far, the Air Force has taken nine years and has made three attempts at replacing 179 of its Eisenhower-era KC-135 tankers. Should the Air Force award its $35 billion contract later this year as planned, and no protest is launched, then the agency expects to see seven new tankers in production in 2013, reports Air Force Times. Highlights from the Air Force's tanker schedule:
E-mail | Print | Comment A different kind of Airbus A380 ... What's 7 feet long, 6 feet wide and contains 35,000 pieces? An Airbus A380. Well, not a normal super jumbo jet, but one made entirely from Legos. Lego fan Ryan McNaught from Australia took eight months to complete his Qantas A380 Lego masterpiece. Check out photos, including snakes on the super jumbo jet here. The replica actually moves, using touch screen controls which operate the landing gear and wing airbrakes. Of his A380 Lego model, McNaught said: "No one has ever built an Airbus like this." ... [Read More]
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The Boeing Co. and United Airlines have finalized an order for 25 Dreamliner jets, the companies said Thursday. The order was announced last December, when United also said it would buy 25 of Airbus' A350s. But the deal wasn't completed until this month. United's order for 25 Boeing 787-8 jets also includes an option to buy another 50 Dreamliners. The order is valued at $4.2 billion at list prices, which airlines rarely pay. "Boeing and United Airlines share an 80-year partnership," said Jim Albaugh, CEO of Boeing Commercial Airplanes. "United, which launched the Boeing 777, now begins a new chapter with the 787 Dreamliner, the most technologically advanced commercial jetliner ever built." United's order was added to Boeing's orders tally Thursday. Boeing also logged in a request from an unidentified customer for 20 737s. That brings Boeing's year-to-date order total to 55. Boeing now has 876 orders for its 787 Dreamliner from 57 customers. ... [Read More] E-mail | Print | Comment
The Boeing Co. has three 787 jets in flight testing after another Dreamliner took to the skies shortly before noon Wednesday. This is the fourth 787 that Boeing built, but the third Dreamliner to fly. Boeing plans to have the Dreamliner was built third in the air by the end of the month. The Dreamliner departed from Everett's Paine Field this morning headed for Moses Lake, Wash. ... [Read More] E-mail | Print | Comment Pentagon to discuss AF tanker contract today Pentagon officials will hold a press conference today to discuss the Air Force aerial refueling tanker contest. Deputy Defense Secretary William Lynn has scheduled a press conference at 1 p.m., PST, according to a notice on the Defense Department Web site. Defense officials have begun briefing members of Congress this morning on the competition featuring the Boeing Co. and duo Northrop Grumman and EADS. This is the Air Force's third try at awarding its $35 billion contract for replacing its aging fleet of KC-135 tankers. Members of Congress will be reading the Air Force's final tanker rules closely to ensure the Pentagon's contest doesn't give unfair advantage to one bidder over another. After his briefing with defense officials this morning, Sen. John McCain, R-Ariz., told Reuters that he's still digesting the information. As to whether the Pentagon's rules are fair, McCain said, "Put me down as cautious." ... [Read More] E-mail | Print | Comment Virgin Blue to order 50 Boeing 737s Virgin Blue said it plans to order 50 of the Boeing Co.’s 737 single-aisle jets. Boeing said in a statement released late Tuesday that it is working with Virgin Blue to finalize the order. ... [Read More] E-mail | Print | Comment
Yesterday, Gov. Chris Gregoire launched her U.S. Tanker 2010 coalition, which includes the support of governors from eight other states. The coalition is lobbying for a Boeing Co.-built tanker in the U.S. Air Force's $35 billion aerial refueling tanker contest. Among the governors supporting Gregoire's coalition is Illinois Gov. Pat Quinn. On one hand, Illinois support of Boeing isn't surprising. Boeing's headquarters are in Chicago. On the other hand, Boeing's competitor, Northrop Grumman and EADS, have been courting Illinois. In one of Northrop's recent ad campaigns (see right), the defense contractor says that Illinois would get about 4,300 new direct and indirect jobs as a result of a Northrop win. During Boeing's 2008 tanker bid, the company said at KC-767 win would mean roughly 3,000 jobs to the state. Since Boeing hasn't announced which tanker it's offering, it's unclear how much Illinois will benefit from a Boeing win. Northrop Grumman, which has been headquartered in Los Angeles, announced in January that it will move its corporate offices to Washington, D.C. California, which stands to gain some 7,500 jobs from a Northrop win, didn't join Gregoire's coalition. (Boeing has more than 23,000 employees there). South Carolina, which won Boeing's second 787 production line over Everett, isn't on Gregoire's coalition list either. The state expects to get 3,000 jobs from the Boeing 787 line. But the scandal associated with S.C.'s governor might be a deterrent. Gregoire's aerospace advisor, Bill McSherry, tells me the governor stopped reaching out to others in the last few weeks as she prepared to launch U.S. Tanker 2010. But she will be in touch with more governors in the coming weeks. And where does Alabama stand? , are in Washington, D.C. today to push for splitting the tanker contract between Boeing and Northrop. ... [Read More] E-mail | Print | Comment Mobile, Ala. official: Splitting A.F. tanker a ‘no-brainer’ Officials from Mobile, Ala., are in Washington, D.C., today to lobby Congress over the Air Force tanker contract. The Air Force is expected to expected to release its final requirements for the $35 billion tanker contract tomorrow. Northrop Grumman and EADS would assemble their tanker in Mobile. But Northrop officials believe the initial Air Force rules favored Boeing’s 767 tanker. Mobile’s representatives, therefore, are OK with a split contract. A dual-buy would sustain Boeing’s supply chain as well as create 50,000 jobs for Northrop and EADS’ tanker, said Mike Dean, president, Mobile County Commission. “If the administration and Congress are serious about legitimate, lasting, stimulus then this is a no-brainer,” said Connie Hudson, Mobile City councilwoman. “Let’s put people to work now and get the military the equipment it needs” If Northrop drops out of the contest, as the company’s CEO has threatened if he believes it favor Boeing, then a Boeing sole-source win means “30 years of delays and cost overruns,” Dean said. If Northrop bids, the cycle of protests and rebids continues. Today, however, Air Force Secretary Michael Donley reiterated that the Pentagon does not want to split the contract, reports Reuters. ... [Read More] E-mail | Print | Comment
Gov. Chris Gregoire and eight other governors today launched a coalition to lobby for the Boeing Co. in the U.S. Air Force tanker contest. “There is only one competitor that has the capability to build this tanker now,” Gregoire said at a press conference in Washington, D.C. “We know the Boeing airplane will be the best.” During the worst recession in 80 years, it's important to make sure Americans get back to work and awarding Boeing the $35 billion deal will do that, she said. The Air Force is expected to release its final requirements for its new tanker as soon as tomorrow. This is the Pentagon's third attempt at replacing an aging fleet of KC-135 Stratotankers. Gregoire noted that during Hurricane Katrina, Washington state was about to send aid to the Gulf Coast using those KC-135s. But many of those tankers have been retired due to age. The state wouldn't be able to respond so quickly today, she said. Governors from the states of Kansas, Connecticut, Iowa, Maine, Missouri, Oregon and Utah have joined Gregoire's effort. Washington businesses and labor groups also have agreed to back the coalition. “We think it's important for the administration and for Congress to hear from the governors,” Gregoire said. Washington's governor said she hopes this coalition will work in a constructive manner unlike recent action taken by Sen. Richard Shelby, R-Ala. Shelby put a hold on 70 Obama administration nominations to protest what he feels like is an unfair tanker contest. Boeing's competitor for the contract, Northrop Grumman and EADS, would assemble their tanker in Alabama. Northrop's CEO has said the Air Force's draft rules favored Boeing's KC-767 tanker. “It's time to take the politics out of it,” Gregoire said. For more on the coalition, visit its Web site. ... [Read More] E-mail | Print | Comment
As Gov. Chris Gregoire prepares to launch today a coalition to back the Boeing Co.'s efforts to win the U.S. Air Force tanker contest, another group is gearing up to push for a split-buy. BuildThemBoth.com has launched a campaign, well, to build both Boeing and duo Northrop Grumman and EADS' tanker. The result, the group says, would be 100,000 American jobs. Carrie Giddins, a spokeswoman for Build Them Both, said the nonpartisan coalition was started recently by a couple of concerned individuals. They've reached out to Northrop Grumman, EADS, Boeing, labor unions and suppliers to join their coalition. The larger effort, Giddens said, is to create more jobs in this country (American Jobs Now). The coalition placed its first advertisement this morning in Politico. The new coalition has been featured on the Web sites of both the Aerospace Alliance and KeepOurTanker.com. The first is a coalition based in the Gulf Coast region, with member states Alabama, Mississippi, Florida, and Louisiana. The second is an effort by Mobile County, where Northrop and EADS would assemble their tanker. The Air Force is expected to release its final set of requirements for its $35 billion contest to replace its KC-135 tankers as soon as Tuesday. ... [Read More] E-mail | Print | Comment
The Air Force tanker contest is like the Olympics ... The Air Force tanker contest is like the Olympics ... no, that's not Forrest Gump ("Life is like a box of chocolates ... "). It's the analogy drawn by backers of the Boeing Co.'s tanker during a rally today. Boeing is competing against duo Northrop Grumman and EADS for a $35 billion deal supplying the U.S. Air Force with aerial refueling tankers. The Air Force is expected to release its final set of requirements next week and to name a winner later this year. "We hope to bring home the gold this year ... so that our members can begin to build the Air Force tankers," said Tom Wroblewski, president of the local Boeing Machinists union. Rep. Jay Inslee, D-Wash., continued with the Olympics analogy as he expressed concerns about the Air Force not taking into account a preliminary decision by the World Trade Organization against Airbus. "When Apolo Ohno gets up there to receive his Olympic medals, we don't allow a French competitor to take it from him," Inslee said. EADS is the parent company of Toulouse, France-based Airbus and will base its and Northrop's tanker off an Airbus jet. Boeing and Airbus have both alleged the other received unfair government subsidies. The WTO hasn't ruled on Airbus' claims yet, but it did initially rule that Airbus received illegal subsidies. "They got caught cheating," Inslee said. Rep. Rick Larsen and Sen. Maria Cantwell, both Washington Democrats, skipped the Olympics references but appealed to an American audience. "We ought to be investing in American jobs," Cantwell said. "We have the best qualified ... workforce right here," Larsen said. "We have the people and the people need jobs." Northrop and EADS say their tanker also would create American jobs, particularly in Alabama, where the KC-30 would be assembled. ... [Read More] E-mail | Print | Comment
It's a Friday in February and the Machinists are getting ready to rally in support of Boeing in the Air Force tanker contest. I can't help but remember another Friday in February when the tone of the tanker rally was much, much different than the one I'll see today. It was just two years ago, on Feb. 29, 2008, when the Air Force shocked Boeing workers here in announcing that it had selected the tanker offered by Northrop Grumman and EADS over Boeing's. The mood at that rally? Outrage. It's difficult not to dwell on how long the U.S. Air Force's attempt at replacing its aerial refueling tankers has dragged on. I took a peak at tanker stories published just in the month of February for each of the past few years. Here are few of the highlights: 2009: Murtha not sold on Boeing sole-source tanker contract 2008: Airbus-Northrop beats Boeing for tanker contract 2007: Boeing will use 767 for tanker 2006: Future of 767 anything but clear 2005: Reviving 767 for military may be costly 2004: 767 deal grounded again ... [Read More] E-mail | Print | Comment Governors' coalition touts Boeing tanker Gov. Chris Gregoire and governors from seven other states have formed a coalition to push for the Boeing Co. to win the Air Force tanker contract. Herald politics reporter Jerry Cornfield first noted the coalition in his Q &A session with the governor last week. Gregoire will be in Washington, D.C., next week to “make the case for an all-American refueling tanker,” according to a press statement. Boeing is competing against duo Northrop Grumman and EADS for the multi-billion dollar deal. “Awarding the refueling tanker contract to Boeing will provide work for 40,000 to 50,000 people all across the country at a time when the national economy is still struggling mightily,” Gregoire said. Joining Gregoire in the coalition are Governors Mark Parkinson of Kansas, Jodi Rell from Connecticut, Chet Culver of Iowa, John Baldacci of Maine, Jay Nixon of Missouri, Ted Kulongoski of Oregon and Gary Herbert of Utah. Northrop and EADS have a coalition in their corner, too. The Aerospace Alliance includes government and business leaders from the Gulf Coast, including the states of Alabama (where the Northrop-EADS tanker would be built), Louisiana, Mississippi and Florida. ... [Read More] E-mail | Print | Comment
Boeing, Northrop hit the tanker trail With the Air Force's final tanker requirements due out next week, both competitors for the lucrative contract hit the trail this week, talking up their respective tankers. Northrop Grumman made a stop yesterday in North Carolina, telling residents there that a Northrop win would mean 1,500 jobs for the state. Northrop is teaming up with EADS to offer the Air Force their KC-30 tanker, based off Airbus' A330 commercial jet. Boeing made an appearance today in Orlando, Florida. The company is taking BART, Boeing Aerial Refueling Technology trailer, on a Tanker Trek this year, visiting various defense conferences across the country. Air Force officials said today that they'll release the final request for proposals as early as Feb. 23, but no later than the end of the month. Based on comments made by Northrop officials, the Air Force knows that Boeing may be the only defense contractor to submit a bid for the multi-billion dollar contract. “We are not walking blindly into a situation where we just have one potential offeror," said Lieutenant General Mark Shackelford, military deputy in charge of acquisition for the Air Force, according to Reuters. A recently released report from the Dept. of Defense could indicate the Air Force favors Boeing's 767 tanker, writes analyst Scott Hamilton. That's exactly why Northrop officials have said they may not compete in this round. ... [Read More] E-mail | Print | Comment
Machinists: Boeing Commercial Airplanes should divorce from corporate In response to an analyst’s suggestion last week that the local Machinists ‘divorce’ themselves from the national union, leaders for Seattle-based District 751 submitted this statement: “By the same token, we think it would be highly beneficial to the state of Washington and its aerospace industry if Boeing Commercial Airplanes group would divorce itself from Boeing-Chicago,” said Machinists spokeswoman Connie Kelliher. “We’ve certainly found BCA leadership at Longacres to be more reasonable and flexible in our dealings with them. “Both District 751 and our leadership at the International are committed to working with Boeing to improve our relationship here in Washington, and nationwide,” she said. “We’re confident that if Boeing would just match that commitment and partner with us, we’d all benefit.” ... [Read More] E-mail | Print | Comment
British Airways to use waste-based jet fuel Yesterday, British Airways announced plans to establish Europe's first sustainable jet-fuel plant with partner the Solena Group. The airline plans to begin using fuel from the facility to power part of its aircraft fleet by 2014. The facility will convert annually 500,000 tons of waste, bound for the landfill, into “green” jet fuel. By using the green jet fuel, rather than regular petroleum-based fuel, British Airways is slashing its carbon emissions the equivalent of taking 48,000 cars off the road for one year. The airline has a goal of cutting its carbon emissions by 50 percent by the year 2050. "We are absolutely determined to reduce our impact on climate change and are proud to lead the way on aviation's environmental initiatives," said Willie Walsh, chief executive of British Airways. ... [Read More] E-mail | Print | Comment
The fourth and final Dreamlifter has joined the Boeing Co.'s fleet to support production of the new 787 aircraft. Boeing uses a fleet of modified 747-400 cargo jets to transport sections of its 787 Dreamliner from around the world. The fourth "Dreamlifter," which is the last one that Boeing plans to add to its fleet, entered service today. Its registery is N718BA. The freghter, which was modified by Evergreen Aviation Technologies Corp. in Taipei, Taiwan, took off from Paine Field in Everett early this morning. The Dreamlifter was bound for Wichita, Kan., Boeing ferries large sections of its 787 from partner sites in Japan, Italy, Kansas and South Carolina to Everett, where the 787 is assembled. The company is adding a second final assembly line in South Carolina. ... [Read More] E-mail | Print | Comment
Analyst: Local Boeing Machinists should divorce national union The Boeing Co. and its local Machinists haven't enjoyed the best relationship over the years – that's no secret. On Wednesday, analyst Scott Hamilton, with Leeham Co., suggested a partial solution: the Machinists' local 751 District should 'divorce itself from the national union." Machinists here should create their own union, over which they'll have more say than if they maintain their tie to the International Association of Machinists and Aerospace Workers, Hamilton said. Hamilton spoke at the PNAA conference, which I attended in Lynnwood on Tuesday and Wednesday. The analyst said that the local Machinists have proven much more creative and willing to work with Boeing than has the national/international union. “Their relationship with Boeing is contentious,” Hamilton said. But Hamilton believes that Boeing shares blame for the bad blood between the two. During talks with the Machinists over the fate of second 787 line, Boeing was using the union “as a stalking horse and whipping boy to get more incentives out of South Carolina,” Hamilton said. Not surprisingly, Boeing disagrees with Hamilton's assessment of second line talks with the IAM. “We were absolutely serious in our discussions with the IAM and our willingness to put the second line in Everett,” wrote Tim Healy, Boeing spokesman, over e-mail. “The IAM knew exactly what it would take to get the result they wanted.” In his monthly column, Local Machinists' president Tom Wroblewski recently called on Boeing managers to “quick picking fights with us and instead join us in … partnership.” Despite past problems, Wroblewski writes that the Machinists are “committed to making Boeing a success” but he calls on Boeing to make a commitment to the union in a “real and tangible way.” For the company's part, Healy responds: “We all fail and succeed together, which is why our focus is on our success now and into the future. That success is going to be built on things like meeting our commitments to customers, on improving our productivity, and on making sure that we are competitive with our costs.” ... [Read More] E-mail | Print | Comment
No, wizards aren't putting together Boeing Co. jets. But Boeing and the Harry Potter books do have something in common: they both made the 2010 Economic Report of the President, which is prepared by the chair of the Council of Economic Advisors. Most importantly, Boeing and J.K. Rowling's books both are part of this wonderful thing called international trade. If it weren't for trade, the famous Harry Potter series would be stuck in the United Kingdom, depriving “millions of Americans” from reading the popular books. Likewise, the CEA writes: More Americans can work as well-paid aircraft engineers or manufacturing employees for Boeing or as technology specialists for Apple because those firms are able to sell on a world market. ... [Read More] E-mail | Print | Comment
FAA scrutinizes Aviation Technical Services' work – report Work performed by Everett's Aviation Technical Services has drawn scrutiny by federal aviation authorities. The Federal Aviation Administration is investigating Southwest Airlines for safety violations, reports The Dallas Morning News. The violations involve work performed by ATS for Southwest Airlines. ATS was to replace skin panels on 737s for Southwest under a directive from the FAA. The maintenance and repair company suggested an alternative to Southwest, which ultimately is responsible for getting any deviations approved by the FAA, an unnamed official told the newspaper. The publication describes the deviations as follows: Part of the work involved a process known as shoring, which is how mechanics secure the aircraft frame while skin panels are changed. In addition, the inspectors found that ATS' mechanics didn't always apply rivets to refasten the skin panels within the 20 hours prescribed by Boeing, the plane manufacturer. The rivets must be applied in that timeframe to ensure that sealant doesn't leak out, creating a gap between the skin and the frame of the airplane. In the worst-case scenario, faulty work could lead to metal fatigue, corrosion or other deterioration of the aircraft's skin. Southwest has been investigated and fined by the FAA several times over the past few years. ... [Read More] E-mail | Print | Comment |
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