The team of Northrop Grumman and European Aeronautic Defence and Space (EADS), Airbus's parent company, will build an initial fleet of 179 tankers. The contract to supply the tankers had initially been awarded to Boeing, but was withdrawn in 2004 over a procurement scandal that resulted in officials from Boeing and the Air Force being sent to prison.
For EADS, Boeing's rival in the commercial aviation industry, winning means getting a foot in the door of the U.S. military aircraft business. For Boeing, losing means that its 767 line will probably be shut down at some point as commercial sales for the plane decline. "
Great, just what this country needs, more jobs leaving during a time in which jobs are scarce and the dollar is falling.
Times have been especially tough for the aircraft industry, and it looks like times are going to be even tougher now that the EADS corporation has gotten their foot into the American military market.
A March 24, 2008 posting on Business News.Com ("Air Force tankers fly on borrowed time" ) stated that:
"The tanker deal would have meant 3,800 jobs in Wichita { if Boeing } had won the contract. "He has made it abundantly clear that, if president, he would be indifferent to the outsourcing of American jobs, even at a time when our families and our nation's economy are hurting the most," said Larry Gates, chairman of the Kansas Democratic Party"
According to the March 18, 2008 issue of the Wichata Eagle, U.S. Senator Sam Brownback (R) Kansas, told a group of Wichata business leaders that the EADS corporation has an unfair advantage in obtaining the tanker contract...
"Standing with a bar graph depicting billions of dollars in foreign government subsidies to a consortium of European aircraft companies, Sen. Sam Brownback on Monday stressed that a massive tanker contract must be overturned.
It was the latest in a string of harsh criticism of the Air Force's decision to award a $35 billion contract to the European Aeronautic Defence and Space Co., Airbus' parent company, and Northrop Grumman, instead of to the Boeing Co., to build the next generation of aerial-refueling tankers.
Brownback said U.S. government figures show the European companies received $5 billion in subsidies that were intended to jump-start their commercial aircraft program. Now that subsidy is undercutting an American company on a military contract, Brownback told about 150 people at a downtown Rotary lunch at the Broadview Hotel.
'Do you think Boeing could launch a good aircraft with $5 billion?' he asked.
The crowd of business leaders and government officials applauded loudly when Brownback said the contract decisions should be overturned.
Brownback said the tanker deal 'popped us right in the jaw' in Kansas. He later noted that he is working with other officials to determine the full economic impact of losing the contract.
'I'm still mad about this,' he said"
That's odd, because just five days prior to addressing Wichata business leaders, the Kansas City Star in a March 23, 2008 article entitled :
"Questionable tanker deal could cloud November election for Republicans in affected states" had this to say about the lost Boeing contract:
"WASHINGTON Some Kansans furious and mystified over the demise of a Boeing bid to replace the Air Force’s aging armada of aerial tankers think they detect John McCain’s fingerprints.
The senator from Arizona says the decision was the Pentagon’s and that he had nothing to do with it other than to ask for fair competition, for taxpayer money not to be wasted and military effectiveness not impaired.
Boeing allies, however, point to the former Airbus lobbyists on the Republican’s campaign staff and the political contributions from the company. They question an amendment he championed opening military bids to foreign manufacturers, his letters to the Defense Department pushing to ensure Boeing wasn’t the lone airplane maker being considered and his call to ignore European subsidies to Airbus."
(So much for McCain's pledge not to bow to "special interests" )
The article also reveals that:
"in 2003, when Congress approved his amendment that allowed the Pentagon to buy American military equipment from foreign companies. Sens. Pat Roberts and Sam Brownback, both Kansas Republicans, voted for the amendment along a largely party line.
And in 2006, McCain wrote letters to the Defense Department suggesting the criteria be broadened and the issue of European subsidies to Airbus not be a deal breaker. Opponents said the senator was lobbying on Airbus’ behalf, but McCain said he was merely calling for an open bidding process.
McCain’s backers think his moves benefited America: “All the senator advocated for was 100 percent full competition, and that’s it,” said Keith Ashdown of Taxpayers for Common Sense
Republican anger is publicly vented at the Air Force. The 500 direct, and 3,300 indirect, jobs it would have led to in Kansas are sorely missed. At one time, Wichita had more than 50,000 aerospace jobs. Today it has 39,300 (and about 4,000 at Boeing).
The could have meant $145 million a year for the Kansas economy. Given that, Larry Gates, chairman of the Kansas Democratic Party, has no reason to hold back."
Brownback , who is campaigning for Republican presidential candidate John McCain , defended his actions in an article found in the Wichita Eagle entitled, "Would Kansas snub McCain over tanker?" published March 23'rd , by stating that it is :
"an entirely different picture" now, adding that Boeing paid a price for its misconduct: "There were corruption charges and people went to jail, as they should have."
With the loss of nearly 4000 jobs at the Wichita, KS plant, partly because of Brownback's vote to open up the contract bids for military manufacturing, Brownback now has a real problem on his hands.
In politics nothing is coincidence, so one has to wonder what McCain has promised Brownback, in return for his support, and if that promise still stands if Kansas is unable to clean up this mess that he has helped create in his own homestate.
Brownback has only one thing left to fall back on now; Freedom's Frontier National Heritage Area.
The Freedom's Frontier National Heritage Area. It is the brain child of Republican Kansas U.S. Senator Sam Brownback his one time room mate former Missouri U.S. Senator "Chicken Jim" Talent.
The two Senators worked in unison to secure funding ($10,000,000 over 15 years) that would turn most of Eastern Kansas and 12 Western Missouri counties into a National Heritage Area and under the authority of the National Park Service.
A shaky plan to land $10,000,000 in Federal tax dollars over the next 15 years by creating a national heritage area in Eastern Kansas and Western Missouri, that some say threaten private property rights is all Brownback has left to help deliver Kansas to McCain in the November, 2008 presidential election, and according to one anonymous source who contacted me, Brownback is fuming mad about the lack of progress that is being made on the Freedom's Frontier National Heritage Area.
The anonymous source writes:
"One of my “deep cover” sources from Lawrence was at a meeting recently where Sen. Brownback was present. According to my source the Lawrence Downtown Redevelopment/ Visitor’s and Convention program/Destination Management/Freedom’s Frontier scheme was mentioned. It was reported that Brownback was fuming about the lack of progress on the projects. My source said some of the people in attendance “…just didn’t want to talk about it” to Brownback or anyone else."
Who could blame them? I'm guessing they would have rather had the 4000 well paying jobs and not had their property rights threatened by a $10,000,000 tourism scheme.