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Doing Biz Abroad | business in the global marketplace

Boeing Continues the Poker Game for Air Force Tankers

by Jean Mercedes on August 26th, 2008

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This being an election year in the US, some big companies can get away with almost anything.

After losing a $35 billion deal to build the next generation of U.S. Air Force tanker planes to European competitor EADS (refer to previous post), Boeing called “foul-play” and Congress forced the Air Force to re-open the bidding process. Boeing has now publicly stated that they will not participate in the bidding unless it is extended by an additional four months. Boeing needs the extra time to include a different plane in the bid. Well sure, the first plane they offered lost the bid.

Remember, we are talking about a big military project here, paid for with taxpayer money. The bidding process is meant to be open and fair to ensure that the government gets the best product for the best price. How can pampering one bidder (Boeing) be tolerated? Like I said, it is an election year and politicians want an American company to win, even though the EADS bid (with partners Northrop Grumman and engines from GE) will also lead to new jobs in the US.

If Boeing gets the contract in the end, it will be not only a blow to international business in general but will represent a low point in US - European relations, and may lead to some sort of silly retaliation.

Image from www.af.mil. 

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POSTED IN: News, Uncategorized

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