The strike involves a wide range of issues, including: pay, pensions, job security and benefits. Mr. McNerney points out that if the machinists continue the strike, they are hurting the future of their jobs. Currently, the machinists complain about Boeing outsourcing major parts of aircraft production to Asia. This complaint specifically deals with the 787, which outsources major parts of the aircraft to other companies and to foreign countries. The wings for the aircraft are being built in Japan, and large portions of the aircraft are being built by the Three Japanese Heavies (Kawasaki H. I., Mitsubishi H. I., & Fuji H. I.). Although the machinists are unhappy with the changes with who-builds-what, I firmly believe that Mr. McNerney is correct in saying "...we believe this track record of repeated union work stoppages is earning us a reputation as an unreliable supplier to our customers, who ultimately provide job security by buying our airplanes."

The up and coming industry in China is something to be worried about. Not only as a manufacturer, but as a consumer. "China is accelerating rapidly in pursuit of its goal to become an aerospace leader," wrote Mr. McNerney. I firmly believe China is not the place when it comes to safety and quality. Sure, we can trust them to make a pair of Nikes, yet products as exquisite as aircraft, we simply should not be trusting China just yet. With reports of malfunctioning microchips inside aircraft, I think we need to be concerned. It cuts labor costs, and that's the reason why Airbus has started a plant in China. Yet I say keep aviation outside of China for the moment, at least until a viable product proves otherwise. 

I'm happy to see that Boeing management has held strong on this issue. A little while back, I was very certain that the union would accept Boeing's offer. Boeing raised the salary of machinists 11% (3% year 1, 3% year 2, 5% year 3) prior to the vote (to strike by the union). You can read the last and final offer here.

Image: flickr.com

Boeing CEO Jim McNerney issued an internal memo this morning about the IAM strike. The bottom line: Boeing doesn't look to be budging on its positions. Here is the memo in full:

Boeing stalled by strike as competitors strengthen their positions Any settlement must balance rewarding valued employees with protecting our ability to compete and win

Jim McNerney
Chairman, President and Chief Executive Officer
>
Many of you responded to my column last week on the crisis in the financial markets with questions and comments about the ongoing strike in the Pacific Northwest and Kansas, which has now entered its fifth week.
I understand and share the frustration so many of you feel when we don't have the whole team together working to meet the commitments we've made to our customers and competing to win the new business that will sustain and grow Boeing jobs for years to come.
There should be no doubting our intentions at this time; we want to resolve this strike. And we want to do it in a way that fairly rewards a vital group of employees while vigilantly protecting our ability to compete and win globally-- today and tomorrow.
The issue of competitiveness as it relates to this strike is a big deal, and that's the perspective I want to share with you today. As I look ahead, I see tremendous pressure coming from old competitors and new ones. And as competitive as we are today, we cannot rest on the assumption that our past success--and past ways of doing business--will ensure our future.
Here's some more detail behind my concerns:
* New competitors are rising.
Just a few days ago, Airbus President and CEO Tom Enders reiterated a point you may have heard me make before. That is, the duopoly between Boeing and Airbus in supplying the world's large commercial jets will come to an end--probably sooner rather than later--as other competitors enter our markets.
Case in point: China. China is accelerating rapidly in pursuit of its goal to become an aerospace leader. Late last month, China became only the third nation ever to conduct a spacewalk. It is also planning a space station and a moon landing. In commercial aviation, China expects to fly its first home-designed and -built regional jet--the 90-seat ARJ21--this year, and it has set up a company to build bigger jets that will directly compete with our products. China also has the resources and indigenous market to support its aspirations.
Other nations--including Russia, Japan, Canada and Brazil--either already produce or are developing the capability to produce airliners that approach the size of Boeing's smallest and best-selling 737.
* Existing competitors are sharpening their edge.
EADS/Airbus is growing stronger, too. It is dramatically restructuring and cutting costs in response to the weak dollar, and it is quickly moving toward a lower-cost global production model that also reaches into key customer markets--including the United States. Just a week ago it opened an A320 final assembly line in China, and it has committed to buy $1 billion a year of Chinese-made components. Its plan to assemble U.S. Air Force tankers in Alabama is a move both to grab a larger share of the U.S. defense market and to establish a beachhead for producing commercial airplanes in the United States--and in a very low-cost location, too. EADS/Airbus is also expanding its presence in Northern Africa, Mexico, India, and Russia. And when the dollar rebalances with the Euro--as it inevitably will--Airbus will gain a big cost advantage if we are unable to match them through our own productivity gains.
* Labor disputes are affecting our customer relationships.
Throughout the years, Boeing has consistently provided some of the best labor contracts in the industry--and we're proud of that. As a result, our machinists' pay and benefits are tops in the industry. And yet, union leadership has recommended that its members reject contract offers and go on strike four of the last five negotiations going back to 1995.
While we've disappointed customers for other reasons in recent years, too, we believe this track record of repeated union work stoppages is earning us a reputation as an unreliable supplier to our customers--who ultimately provide job security by buying our airplanes.
We remain committed to changing this dynamic, and I am hopeful union leadership will see the benefit of doing so, too. If our collective Boeing team--with both non-union and union-represented employees--cannot reliably supply our customers, other competitors will do so--and their respective governments will provide support because the return on investment to their economies through the high-wage, high-skilled jobs of aerospace is so significant.
* Preserving our competitiveness has never been more important--or urgent.
The ongoing turmoil in the financial markets provides a timely reminder of why it would be gravely unwise for Boeing to agree to terms in any contract that would fundamentally restrict our ability to manage our business. Markets and business conditions can change quickly and dramatically. And we need to be able to react just as fast.
U.S. auto companies, for one, all but fatally wounded themselves years ago by promising unsustainable wage and benefit levels and by agreeing to contract conditions (including job guarantees) that limited their flexibility to run their businesses in the face of intense global competition. Today, their market shares continue to fall, and their layoffs have grown by the thousands.

The unrelenting reality is this: Jobs in today's global economy are created and sustained only through increasing productivity and customer-focused innovation. That's been our strategy, and it has worked for everyone's benefit. Since the 2005 negotiations, we've increased sales substantially and hired nearly 15,000 employees in the Puget Sound area alone, including more than 7,000 represented by the IAM and nearly 3,000 represented by SPEEA.
For their part, our IAM-represented employees have done a great job improving our productivity and helping make us more globally competitive. I value them and the role they have played--and will continue to play--in the success of our company. And I take very seriously our commitment to reward them fairly for their contributions.
That's something I believe our contract offers have consistently reflected, and it's the mindset we brought to the start of these negotiations.
I'll repeat again: We want this strike to end. It's difficult for all our employees, our customers, our suppliers, our investors and our communities. We are committed to working with union leaders and the federal mediator to reach a settlement, but we cannot sacrifice our long-term competitiveness for expedience in a short-term agreement to end the walkout. History, and every group with a stake in our future, would judge us poorly if we were to do so.
Thank you for everything you are doing for Boeing in these dynamic and challenging times. If there's one thing we can all agree on, it is this:
Our company is strongest when all of us--union and non-union alike--are lined up together, working for our customers and against our competitors. I am hopeful those days will return again soon.
Thanks.
Jim

Original Post, October 6:

The strike by the IAM against Boeing began one month ago today. As the strike against The Boeing Co. by the IAM enters its fifth week, here are some items of note:

Shot across the bow?

Aviation Week has a story in its print edition entitled "Mitsubishi Eyes Final Assembly of 737 Replacement." The Japanese "Heavy" industrial partner on the Boeing 787 program "is keen to take on final assembly of whatever aircraft builds to replace the 737," the magazine reports. The Japanese doubt that Boeing would be willing to hand over that much work, Aviation Week also reports.

Perhaps. But Boeing's frustration with its unions is palpable. There is a faction in Boeing that's had it with the IAM, which has recommended rejection of four of the last five contracts, putting Boeing in the position of facing a strike every three years. While the IAM, and the engineers union SPEEA, want to reduce outsourcing (and the IAM goes one step further, seeking job guarantees), the Boeing faction asks, Why give them more work when all they want to do is strike?

We'll have more on this in our bi-weekly update on our corporate website tomorrow.

Update, 12:50 PM PDT:

Seattle Times: Dominic Gates has this story of the McNerney memo.

Deliveries down on the strike

Third quarter deliveries are off by nearly one third. This is no surprise, since the strike began on September 6 and Boeing normally delivers about 40 airplanes a month.

A little humor

Boeing's unions are engaged in a little underground taunting of Boeing. We find the efforts humorous.

Boeing asked SPEEA members to list what skills they have in common with the IAM, which SPEEA presumes is an effort to identify substitutions or replacement workers for the Machinists. SPEEA officers recommended that the members identify the following skills: building burn barrels and picket signs.

Boeing isn't noted for its corporate sense of humor, but we hope they'll get a laugh out of this You Tube clip anyway. It's just under two minutes. It's about the contentious issue of outsourcing.

A phony ad appeared (briefly) on Craig's List before it was taken down. The ad was entitled, "WANTED: Boeing executives who respect the workforce." The text included, "The Boeing Corp. is in dire need of corporate executives who respect and listen to the workforce." The ad took some shots at outsourcing on the 787 and labor negotiations. It gave a link to Boeing's board of directors for applicants. The ad was removed (and not by SPEEA) 12 hours after posting.

Рик Сини написал о 14 тенденциях, которые получат своё продолжение в гражданской авиации к 2010 году: уменьшение человеческого взаимодействия, дальнейшее проникновение рекламы в самолёты, рост стоимости авиаперелётов, сокращение объёмов перевозок на внутриамериканском рынке, усиление конкуренции на международных трассах, увеличение шансов компаний на банкротство или поглощение, потеря ценности участия в программах по накоплению миль и другие.

Думаю, часть этих тенденций справедлива и для России. Большой передел на нашем внутреннем рынке уже начался. Стоимость билетов, как и любые цены в России, может только увеличиваться. Конкуренция будет усиливаться также на международных маршрутах, так как внутренняя конкуренция в ситуации укрупнения компаний сокращается. Надеюсь только, что у нас ещё не скоро додумаются взимать отдельную плату за еду, напитки и багаж на рейсах традиционных авиакомпаний.

Российская авиация

В прошлый раз я много писал о катастрофе в Перми. Когда дошли до версии о теракте и/или том, что самолёт был сбит силами ПВО, я привёл ссылку на пост в ЖЖ-блоге, который был потом закрыт. Вот тут я наткнулся на другой пост, в которой рассказывается про некие странности с автором первого поста. Оказывается, после того, как версию пермской домохозяйки перепечатали несколько блоггеров, включая меня, она публично отреклась от своей версии.

Между тем, расследование катастрофы идёт какими-то уж очень быстрыми темпами. Поначалу говорилось о том, что на расшифровку чёрных ящиков уйдёт 2-3 месяца. Но чёрные ящики уже расшифровали. "Отсутствие следов взрывчатки" обнаружили ещё чуть ли не во время тушения пожара на месте падения, хотя для таких заявлений требуются многочисленные экспертизы. Полевой этап расследования также был скоропостижно завершён сверхударными темпами.

Как и предполагалось, значительную долю вины сваливают на экипаж. И лететь на неисправном самолёте они не отказывались. И показаний приборов не смогли разобрать. По поводу этих приборов разгорелась отдельная дискуссия. Дело в том, что прибор "Авиагоризонт" на отечественных и зарубежных самолётах отличается по характеру отображения показаний. Стали говорить о том, что в чрезвычайной ситуации экипаж не смог вовремя сориентироваться.

Тут же добавляют, что экипаж, оказывается, не имел достаточного опыта эксплуатации данного типа самолётов. Это при том, что после катастрофы неоднократно упоминался достаточный налёт часов на Боингах-737.

Вмешивается Росавиация. Издаётся распоряжение о приостановке полётов на самолёте Boeing-737 VP-BKT "Аэрофлот-Норд" из-за того самого авиагоризонта. Авиакомпания решила заменить нетипичный прибор. Кстати, этот самолёт гораздо новее разбившегося, совершил свой первый полёт в 1997 году, эксплуатировался в США и Бразилии до России.

Далее начинается комедия. Авторитетный сайт avia.ru сообщает о том, что "Росавиация временно запретила шести российским авиакомпаниям эксплуатировать самолеты Boeing-737-500 модификации VP-ВКТ". Вообще-то такой модификации нет. А VP-ВКТ только один, так как это регистрационный индекс. Но вслед за avia.ru про Боинг модификации VP-ВКТ написали все остальные СМИ.

А скоро могут начаться судебные тяжбы. "Аэрофлот", правда, с самого первого дня заявлял о крупных выплатах. Но исключить иски нельзя. С другой стороны, в России добиться в таких случаях удаётся мало что. Вот на днях родственники жертв разгильдяйства катастрофы под Донецком получили отказ в выплате страхового покрытия. То есть, пассажиры были застрахованы, авиакомпания имела действующий договор страхования с действующей до сих пор страховой компанией. Но в страховых выплатах отказано. Абсурд.

Началось двухнеделие с прошлой Авиасубботы смертью "Дальавиа". Сотрудники обвинили в крахе руководство, в котором были выходцы из "Аэрофлота". Ведь флагман российской авиации планировал объединить "Дальавиа", "Сахалинские авиатрассы" и "Владивосток-Авиа" в свою дальневосточную дочку. Но с вмешательством "Ростехнологий" эту идею пришлось похоронить. Заодно, видимо, решили похоронить и "Дальавиа".

Хотя, без чемезовского монстра здесь, наверняка, не обошлось. "Аэрофлоту" было бы ни к чему разорять компанию, которую потом могли бы включить в дочку. А вот "Ростехнологии" прославились тем, что с их приходом упал AiRUnion. Тем не менее, даже фактически обанкроченную компанию "Дальавиа" всё равно планируют включить в "Ростехнологии Airlines".

"Дальавиа" была вынуждена передать свои маршруты "Владивосток-Авиа", которая очень удачно войдёт в создаваемую "Ростехнологиями" солянку из разных авиаперевозчиков. А "Аэрофлот" был вынужден не только разруливаться со своими дочками, но и спешно оправдываться, заявляя, что не имеет отношения к кризису с "Дальавиа".

Помимо проблем на отечественной ниве, "Аэрофлот" продолжил играть и на европейском поле. Напомню, что компания в своё время пыталась приобрести Alitalia (Италия) и JAT (Сербия). Ходили разговоры об интересе к Austrian Airlines, но здесь тоже не сложилось. Да и не к чему, ведь Austrian входит в Star Alliance, а "Аэрофлот" в Sky Team. Потом появилась информация, что "Аэрофлот" хочет приобрести пакет акций Czech Airlines, которая тоже является членом Sky Team. И вот теперь руководство компании снова заявляет о сохранении интереса к приобретению европейского перевозчика. Однако сейчас никаких объектов поглощения названо не было. Острожничают?

Вообще, стоит отметить, что в моих собственных глазах "Аэрофлот" довольно сильно сдал свои позиции репутационно. Причина вовсе не в катастрофе в Перми. Первопричина в поспешном "разводе" с дочками. Потом появились разговоры о возможной причастности "Аэрофлота" к банкротству "Дальавиа" и даже AiRUnion. И если весной я испытывал гордость за "Аэрофлот", стремящийся приобрести Alitalia (правда, смешанную с непониманием того, зачем "Аэрофлоту" перевозчик с миллиардными долгами и убытками), то сейчас я испытываю некую жалость к возможной будущей "покупке".

Тем временем, продолжается работа по созданию "Ростехнологий Airlines". Правда, мою идею с названием, кажется, на высоком уровне не поддержали. Пока рабочее наименование компании - "Авиалинии России". Что ж, название страны фигурирует в наименованиях доброй половины мировых авиакомпаний - American Airlines, China Airlines (Тайвань), Korean Airlines, Japan Airlines, British Airways и так далее в том же духе. Только вот загвоздка в том, что "Российскими авиалиниями" уже является "Аэрофлот", он же - национальный российский перевозчик. Понятно, что ситуация в любом случае уникальна, так как обе компании будут с полным или частичным государственным участием. Но это не повод делать два национальных перевозчика. Поэтому над названием я бы поработал. AiRUnion было более подходящим, да и символика ("A" - авиационный, "RU" - говорит за себя и созвучно доменному имени в наш век Интернет) удачна. К тому же, "Ростехнологии" уже зарегистрировали компанию с похожим названием, хоть и в русской транскрипции. Правда, этот вариант тоже "похерен" из-за потери доверия к компании/союзу с подобным именем.

Прежде чем сливать компании в нового гиганта, из ГТК "Россия" выделят авиаотряд для обслуживания самых главных. Вообще-то, "Россия" первоначально и была таким отрядом. Это потом она стала подрабатывать пассажирскими и заказными перевозками, а ещё позже объединилась с "Пулково". Возвращаемся к истокам? А может, пересадить всех главных на обычные рейсы обычных компаний? Ну, Президенту можно оставить борт номер 1, чтобы перед Америкой в грязь лицом не ударить. А остальные перебьются.

Из других ссылок - о возникновении кризисной ситуации с AiRUnion, о ситуации с AiRUnion и "Дальавиа", о круглом столе "Возраст самолета и его безопасность: есть ли связь?", об окончании борьбы за "Домодедово". Также представляет интерес и "Индикатор безопасности полетов мировой авиации/сентябрь 2008", с информацией о состоянии дел с безопасностью полётов и об авиапроисшествиях, авариях и катастрофах сентября в России и других странах.

Самарская авиация

Закончилось двухнеделие с прошлой Авиасубботы смертью "Самары". Наша авиакомпания частично перестала быть исключительно нашей, когда частная доля акций была скуплена в интересах AiRUnion и компанию включили в альянс. Но теперь "Самары" нет совсем... по крайней мере, в воздухе.

По понятным причинам Росавиация планировала приостановить действие сертификатов эксплуатантов у компаний-членов AiRUnion с 30 сентября. Но 30 сентября это произошло только с "Самарой", которая находилась далеко не в таком ужасном состоянии как "КрасЭйр". У "Омскавиа" и "Сибавиатранса" действие сертификата будет приостановлено завтра, а для "КрасЭйра" и "Домодедовских авиалиний" срок продлили до окончания летней навигации 28 октября.

Такую избирательность объяснили необходимостью завершить обязательства по чартерным программам, на которых серьёзно были завязаны "КрасЭйр" и "ДАЛ". Что я могу сказать? "Самара" тоже выполняла перелёты по важным маршрутам, а также участвовала в чартерных программах. Только вот решение московских чиновников, скорее всего, продиктовано тем, что значительная доля пассажиропотка "КрасЭйр" и "ДАЛ" - москвичи, которых подводить никак нельзя. А какие-то там самарцы и омичи потерпят.

Как прикажете терпеть, не совсем понятно по ряду причин. Начнём хотя бы с того, что "Атлант-Союз" не обладает необходимым парком самолётов, чтобы обслуживать свои маршруты + маршруты членов AiRUnion. Думается, что самолёты бывших членов альянса плавно перейдут в новую компанию, но, как я понимаю, пока самарские лайнеры стоят на приколе.

Коллектив "Самары" обратился к Президенту. Это у нас теперь такая традиция. Авиакомпании каким-то образом оказываются банкротами или всячески подталкиваются к этому, а их трудовые коллективы пишут обращения Президенту. При этом, обвинения идут неизменно в адрес руководства: в случае с "Дальавиа" - руководства компании, в случае с "Самарой" - руководства альянса.

Самое печальное, что в последних публикациях о "Ростехнологиях Airlines" говорится о том, что доли в новой компании могут получить (наряду с Правительством Москвы и "Ростехнологиями") Красноярский, Хабаровский края и Санкт-Петербург, поскольку на их территории будут располагаться базовые аэропорты (хабы) новой компании. Самара теперь уже и не упоминается даже. Может, конечно, Артяков попытается влезть, ведь он выходец того же племени, что и Чемезов. Но пока о каких-либо инициативах самарского губернатора в этом направлении не слышно.

Зато губернские власти решили продать Ту-154, который "Авиакор" построил для областного правительства. Самолёт постоянно арендовался "Авиакомпанией Самара". Неудивительно, что покупателей не нашлось. Во-первых, на дворе финансовый и авиационный кризис. Да и топливная эффективность наших самолётов постоянно ставится под сомнение. Наконец, удивляет, что, купив лайнер за 320 миллионов рублей, чиновники запросили за него почти 510 миллионов. Вообще-то за амортизацию, возраст принято снижать цену, а её завысили чуть ли не вдвое. Кто-нибудь объяснит мне логику чиновников?

Вообще печальная картина получается пока. Авиационный завод еле-еле что-то там производит и ремонтирует. Авиакомпания поставлена на прикол. С ослаблением хабовых надежд аэропорт может превратиться в обычный региональный (хоть и крупный). Даже в Москве наш Ту-154 гробят бульдозером. Авиационная Самара перестаёт быть авиационной.

Авиация за рубежом

Alitalia пока остаётся в строю. Она уже почти прекратила работу, уже совсем немного оставалось до момента, когда все пути будут окончательно отрезаны. Но профсоюзы, очевидно, поняли, что лучше Италия с Alitalia и частью членов этих профсоюзов в качестве работников новой компании, чем Италия без Alitalia и всеми членами в качестве безработных. С другой стороны, мне это напоминает российскую ситуацию и методы. Все прибыльные активы будут переданы новой компании (прямо как с "Ростехнологии Airlines"), а остатки затем будут признаны банкротом и распроданы. В дальнейшем прибыльная часть объединится с Air One. И уже в новой компании иностранцам типа AirFrance-KLM и Lufthansa позволят купить доли, хотя и не контрольные (как предполагалось в начале эпопеи с продажей гос.доли в Alitalia). И только в случае провала и этого плана может пригодиться предложение некоего венесуэльского перевозчика Aserca Airlines (которого у нас в СМИ именуют Aserka Airlines) о покупке Alitalia.

За рубежом объёмы авиаперевозок не сравнить с нашими. Действующие аэропорты не справляются. Самый яркий пример - лондонский Хитроу. По объёмам международных перевозок он занимает первое место в мире, а в Европе вообще первое место по совокупному объёму перевозок. Сейчас аэропорт обслуживает почти 70 миллионов пассажиров в год, что раза в 1,5-2 больше совокупного годового пассажиропотока всех московских аэропортов. Вроде бы совсем недавно (хоть и с кучей проблем и скандалов) открыли новый терминал. Но лондонский мэр считает, что надо построить новый аэропорт на искусственном острове в устье Темзы, а Хитроу закрыть. Дескать, даже 5 терминалов не справятся с будущими объёмами, а расширяться дальше не позволят местные жители, которые и так не дают спокойно жить любым инициативам по развитию Хитроу. Только вот Лондон без Хитроу представляется мне гораздо большей и очевидной нелепицей, чем Берлин без Темпельхофа. Тем не менее, Темпельхов закрывается. Неужели и Хитроу канет в лету?

Аэропорты не только строятся, но и рушатся. На днях частично обвалилась крыша тбилисского аэропорта. Здание построено совсем недавно турецкой строительной компанией. Последний факт вовсе не должен автоматически говорить о плохом качесте, ведь турецкие компании строят аэропорты в нескольких странах. Но помнится мне, ещё перед открытием нового здания ходили слухи об огрехах и опасностях. Слухи оправдались.

Самолёты

Благодаря ЖЖ-сообществу ru_aviation, найдена ссылка на прелюбопытную статью (англоязычный оригинал с множеством комментариев здесь) о том, как пассажирам посадить самолёт в случае смерти пилотов. Надеюсь всё же, что никому из вас не придётся побывать в такой ситуации. Тем не менее, всегда лучше быть подготовленным к худшему, чем рассчитывать только на лучшее.

На худшее могут точно рассчитывать производители Ту-214. "Трансаэро" объявило, что может отказаться от покупки 10 самолётов этой марки в пользу SSJ-100. Причиной названо отставание от графика сроков поставки. В данном случае обмен будет (если будет) совершён в рамках одного производителя, ведь и Ту-214 и SSJ-100 производит ОАК. Но обмен этот далеко не равноценен: вместимость средне-дальнемагистрального Ту-214 - 138-210 пассажиров, а ближнемагистрального SSJ-100 - 75-95 пассажиров. К тому же, Ту-214 уже летает и пока не замечен в катастрофах с человеческими жертвами, а SSJ-100 ещё только испытывается.

Наконец, получила продолжение история с варварским уничтожением Ту-154 на ВВЦ в Москве. Нет, другого Ту-154 на то же место не поставили. А вот заверения о том, что ракету "Восток" не тронут, были тут же дезавуированы разговорами о возможной замене её на более современную "Союз-СТ" или "Ангару". Это из той же серии, что и прожекты поставить в будущем на месте Ту-154 SSJ. Люди просто не понимают, что и Ту-154 и "Восток" - история, которая не может быть ничем заменена. Можно поставить современные самолёты и ракеты (если найдётся спонсор, готовый их купить) рядом, но нельзя поставить их вместо. То есть, поставить можно, но это будет неравноценная замена (снова).

The top Boeing bosses run not only Boeing but they and their class run the whole country, and both political parties.

For example, Boeing director Edward Liddy is also a director of manufacturing giant 3M and (till recently) financial giant Goldman-Sachs. His 3M, like Boeing, makes profit the old-fashioned way, by exploiting workers who create value from making products. However, his Goldman Sachs has been profiting the deregulated way, by gambling and cheating — speculating in the markets and selling bad debts — because it was temporarily more profitable than investing in production.

But the new way has problems. Said the NY Times, “A significant portion of the financial boom…seems to have been unrelated to economic performance and thus unsustainable.” So now Liddy and his cronies are getting the government to bail them out.

Their Goldman Sachs is taking advantage of the bankrupting of competitors like Lehman Bros. Had insurance giant AIG failed, it might have taken down Goldman Sachs, but the government bought, and saved, AIG — and Goldman Sachs. Now Liddy is the new CEO of AIG! Boeing director John Biggs is also a director of JP Morgan Chase and former CEO of TIAA-CREF, the national teacher’s pension fund. His successor there, Herbert Allison, is now head of Fannie Mae (currently on government life support).

While a bailout may be advantageous to these bosses, they still have to sell it — to Congress, U.S. workers and to international capitalists. If the world’s bosses don’t go along, it could endanger the dollar as the world’s reserve currency.

Another Boeing boss, William Daley, is a key Democratic Party power broker and an Obama “senior advisor.”His brother Richard is currently Chicago’s mayor, and a big Obama backer. These Democrats are trying to convince workers and youth that “Republican greed” caused the meltdown and that Barack will lead them to the promised land of regulated capitalism. Obama’s main job is to win U.S. youth and workers to sacrifice blood and sweat for these thieves’ continued rule.

Although these Boeing bosses know they can count on Obama to serve Wall Street, some are backing his rival McCain (elections are unpredictable). Another Boeing boss, Kenneth Duberstein, is a director of Big Oil’s ConocoPhillips and was once Republican Reagan’s chief of staff. He’s a long-time McCain advisor and member of Timmons & Co., a leading lobbyist firm. McCain named its CEO, William Timmons, to lead his transition team.

Duberstein, a champion of unregulated capitalism, was also a Fannie Mae director. From 2002-2006 his firm advised that mortgage broker on regulatory matters — how to keep the scam going!
So, the Boeing Board members know that whoever becomes president, he will be tied to the same jackals that caused the meltdown in the first place.

They may have the election sewn up, but they still must convince the world that the U.S., while possibly going bankrupt, is still the only superpower. They plan strategy in the Council on Foreign Relations, the Rockefeller/Morgan-sponsored think-tank that (“unofficially”) plots U.S. foreign policy. Its members include Boeing bosses Biggs, Daley, and Duberstein!

These bandits know they’re in deep trouble. Basically they didn’t make enough profit the “old-fashioned way” so they deregulated, starting with Reagan and growing under Clinton. Instead of investing in industrial production, they had to resort to scams like subprime mortgages — that the old rules made difficult — to make a fast buck.

Now they want to re-industrialize, but not making washing machines and hair dryers. What money remains will be spent on armaments to control the world’s oil supplies and destroy their rivals’ productive capacity.
They want to bail themselves out. But ultimately it’s workers’ loss of homes, jobs and health care, earning slave wages that would bail them out, in their drive to reindustrialize for war production to fight imperialist wars.

The union wanted strikers to come into this battle blaming black, Latino and Chinese subcontractor workers. But when one seller held up our CHALLENGE strike Extra and shouted, “Read how L.A. subcontractor workers support Boeing strikers,” she was cheered.

Based on this experience, a Boeing CHALLENGE reader wrote a “thank you” note from us strikers to L.A. subcontractor workers who have sent support letters and spoken at some of our BBQs. It was the first political document he’s written. He presented it to our group that meets at a nearby restaurant. He knew the union would stonewall any effort to build multi-racial, international unity between non-union subcontractors and us so he proposed a way to gather many rank-and-file signatures right now. Another shop steward agreed to sell more CHALLENGES after this discussion.

Small, but useful, victories as the strike goes on.  Holding the line while struggling to advance PLP’s revolutionary communist line.

STATEMENT FROM CHALLENGE READERS AT A BROOKLYN HOSPITAL

We the CHALLENGE readers express our solidarity with the Boeing workers.
We support our brothers and sisters in their struggle against the Boeing company.
Boeing recently made $20 billion in profit from super-exploiting Boeing workers yet Boeing refuses to meet the economic demands from the workers.
However, the bosses’ government is spending billions in taxpayers’ money to bail out the banks, mortgage and insurances companies, while millions of U.S. workers’ wages have stagnated and health and pension benefits have grown stingier.

We, the CHALLENGE readers, are contributing $70 towards your struggle.
Keep up the fight against the bosses at Boeing.

1 ottobre 2008 - Alenia Aeronautica G222 Accordo da 287 Ml per Capodichino (Il Mattino)

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29 settembre 2008 - Nostro servizio su meeting IMAST Capri 26-27 settembre 2008 Meeting IMAST - Intervista a John Halpin		Convegno a Capri il 26 e 27 settembre : ''Polymeric and Composite Materials. A vision for the future''. Il 26 e 27 settembre l’IMAST, il distretto tecnologico sull’ingegneria dei materiali polimerici e compositi e strutture con sede a Portici (Napoli), organizza a Capri il workshop “Polymeric and Composite Materials. A vision for the future”.
Capri 26-27 settembre 2008 Meeting IMAST (VIDEO )

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27 sett 2008- EADS ha ufficializzato che il primo volo dell’A400M non avverrà entro il 2008.
	La nota del costruttoreeuropeo conferma le indiscrezioni di "Der Spiegel", motivando la decisione con «indisponibilità» del sistema di propulsione TP400. Il gruppo SAFRAN , risponde, anche a nome dei partner del consorzio EPI smentendo l'argomentazione e precisando di aver già consegnato al costruttore gli otto propulsori destinati ai due A400M destinati alle prove in volo.

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27 sett 2008 - ALITALIA: C'E' L'OK DEI PILOTI, CAI VERSO IL DECOLLO - Il via libera e' arrivato dopo che i leader di Cgil, Cisl, Uil e Ugl hanno dato il proprio assenso a due punti di modifica della proposta.

I piloti hanno portato a casa il contratto da dirigente per i comandanti e la riduzione del numero degli esuberi. Ora manca solo la firma degli assistenti di volo. In attesa dell'intesa definitiva dopo Air France anche Lufthansa pronta ad entrare nella nuova società. Fonti sindacali riferiscono che Lufthansa sarebbe pronta ad entrare in CAI non solo come socio di minoranza, ma anche «con quote più rilevanti».

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25 sett 2008 XXII RADUNO INTERNAZIONALE DELLE MONGOLFIERE 1-5 OTTOBRE 2008 Fragneto Monforte (BN)

4/10/2008 22° Raduno di Mongolfiere Fragneto Monforte (Benevento) Dal 1° al 5 Ottobre 2008 il Club Aerostatico Monte Bianco in collaborazione con la Proloco di Fragneto Monforte organizzerà la 22° edizione del raduno internazionale di mongolfiere di Fragneto Monforte (Bn). In Italia è considerato il Raduno Storico per eccellenza, uno dei primi e sicuramente il più longevo, a cui partecipano ogni anno una ventina di mongolfiere provenienti da tutt'Europa; 5 giorni di spettacolo da non perdere!!! Durante il fine settimana delle scorse edizioni l'affluenza è stata di oltre 70.000 persone provenienti da tutta la Campania e da diverse regioni d'Italia! Per informazioni sulle mongolfiere scrivere a info@mongolfiere.it o ai recapiti di cellulare indicati nel sito, per tutte le altre informazioni inerenti al pernottamento, ristoranti, attività collaterali, prenotazione voli ecc... consultare il sito http://www.prolocofragnetomonforte.it

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25 sett 2008 ( Programma) Convegno a Capri il 26 e 27 settembre : ''Polymeric and Composite Materials. A vision for the future''. Un workshop per discutere gli sviluppi nei prossimi 15-20 anni dei materiali polimerici e compositi nei diversi settori di applicazione.

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24 sett 2008 ( Programma) Napoli Convegno SAT Expo

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17 settembre 2008   (h15.00) - Finmeccanica ha acquisito l'11,1% di Eurotech - I sindacati respingono l'offerta di Lettieri per acquisire Atitech.. Napoli - In queste ore cresce la tensione tra i lavoratori di Atitech che bloccano l'accesso all’aerea aeroportuale di Capodichino. ''L'ipotesi dell'intervento della cordata napoletana potrebbe essere una speculazione. Per salvare il nostro lavoro e' necessario l'intervento di Finmeccanica''. L’offerta di Investimenti e Sviluppo Mediterraneo s.pa. di rilevare l’azienda Atitech, inviata ufficialmente al Commissario di Alitalia Augusto Fantozzi, non convince i dipendenti. Il sindacato ha ribadito che un piano industriale di rilancio di una impresa come Atitech non è gestibile da una società specializzata in attività finanziarie e non industriali. Voci ancora non confermate sostengono che oltre ad I&SM al progetto potrebbe concorrere una cordata di PMI campane del settore, mentre Finmeccanica non va oltre una disponibilità ad assumere personale di Atitech restando fuori da qualsiasi progetto di natura industriale.

Finmeccanica guarda invece al settore dell'hi-tech (in particolare nella miniaturizzazione dei pc). Con l'acquisizione di 3,936 milioni di azioni di Eurotech (circa l'11,1% del capitale) a 4,60 euro ad azione, l'holding italiana e' entrata a far parte di una delle aziende che di più stanno affermandosi nel settore della microelettronica.

______________________________________________ ( Video ) settembre 2008   Il Metadistretto dell'Aerospazio-Era marzo 2006, in un convegno a Napoli si parlò per la prima volta di distretto interregionale.(vedi ). Con legittima soddisfazione registriamo che a Torino Sabato scorso, con la firma degli assessori Andrea Cozzolino, Andrea Bairati e Alessandro Frisullo è nato ufficialmente il Metadistretto nazionale dell'aerospazio.

L'avvio della fitta agenda vedrà il primo impegno a Napoli: entro tre settimane gli assessori di Campania,Puglia e Piemonte definiranno la struttura organizzativa di un Comitato che avvierà concretamente un progetto organizzativo e definirà prime linee di attività di ricerca tra le imprese del comparto.

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Napoli 12 settembre 2008 - Aerospazio Campania - Chiaroscuro di un settore dalle enormi potenzialità di sviluppo. Convegno su Ricerca Sviluppo e Alta Formazione nel Settore Aerospaziale all’Università di Napoli Federico II.
Napoli Politecnico 11 sett-2008	In Campania l’Assessore Nicola Mazzocca accelera sul distretto tecnologico aerospaziale. A Torino al convegno di Finmeccanica del 12 e 13 settembre, l’assessore Andrea Cozzolino firmerà un' intesa definitiva per il Polo nazionale Piemonte, Campania e Puglia.
A Napoli, i rappresentanti dei consorzi campani di imprese del settore aerospaziale firmano un protocollo con il quale si impegnano per un tavolo permanente di concertazione sui temi della ricerca che consenta loro di interagire come soggetto unico con le istituzioni comunitarie e gli enti governative.
L’eco della trattativa a Roma sulla vicenda dell’Alitalia non è risuonato nell’aula della Facoltà d’Ingegneria della Federico II dove amministratori pubblici, rappresentanti del mondo accademico e operatori dell’ aerospazio campano hanno dibattuto le proposte del governo regionale per rilanciare le attività produttive, ricerca e formazione del comparto industriale.segue

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10 settembre 2008 - Aeronautica,manutenzione : opportunità per la Campania. Il Denaro  9 settembre 2008 - Imprenditori campani del consorzio «Arcipelago campano» fiutano l'affare Alitalia. Appello della Regione Campania e della presidenza della Provincia di Napoli per salvare i posti di lavoro di Atitech.I parlamentari campani di centrodestra e centrosinistra non sembrano preoccupati del migliaio di posti di lavoro che spariranno con Atitech.. Pochi ne parlano ma tutti sperano che Finmeccanica si accolli gli esuberi e ai lavorati Atitech non resta che la protesta e la mobilitazione. IL Mattino segue 2 settembre 2008 - Alitalia, Atitech di Capodichino fuori dal piano. L'impianto napoletano e gli oltre 850 lavoratori saranno ceduti a terzi. Atitech fuori dal piano di salvataggio di Alitalia. Il Denaro

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7 settembre 2008 - Boeing, sciopero e produzione ferma.
	I Lavoratori del gruppo americano sono in sciopero per il rinnovo del contratto. Alla Boeing può costare 100 milioni di dollari al giorno. Impatto sul programma 787 che potrebbe accumulare ulteriori ritardi e subire lo slittamento del primo volo. Il Manifesto

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It surprises me that these employees haven't returned back to work - nor have they even considered further discussions with Boeing. However, where else can you go and get the same benefits as these employees are currently receiving? Furthermore - what other company is offering a 11%+ increase in salary over 3 years? Not mine nor any company that I have ever worked for. The largest increase in salary that I have ever received is about 7% over 3 years. These Boeing employees are making $60,000 PLUS per year in salary and overtime PLUS virtually free medical and retirement benefits. These fools are holding out for "job security" which no longer exist in AMERICA. If I was the CEO of Boeing - I would fire every one of the employees for walking off the job and hire new employees on. They can do it and I hope they do - they need to be taught that a union is NOT more powerful than the company itself.

V Australia, Virgin Blue's long-haul offshoot, was supposed to launch its service from Sydney to Los Angeles on December 15th, but due to the strike at Boeing headquarters has forced the launch until February of next year!

The airline has suspended advanced sale of tickets for travel December 15 2008 to February 28th 2009.

The strike is very unfortunate! The way the airlines work is that they use the delivery date for new airplanes to add new flights and sell tickets in advance. Any delay in delivery date means loss of revenue for the airlines. The aircraft manufacturer might have to pay delay costs to the airlines (depends on the contract). This seems to be a big opportunity for Airbus (Airbus had problems with A380 and A350 deliveries which now seem to be on track).  

From Herald Sun -

Virgin Blue
said Boeing had advised it of the delay and said it cannot predict the
duration of the dispute at its Seattle plant and therefore could not
guarantee the delivery date of V Australia's launch aircraft.
V Australia has three Boeing 777-300ER aircraft in the advanced stage production at the plant.
Virgin
Blue said it had a revised the V Australia launch date and expects its
offshoot to commence services on February 28, 2009.

V Australia's Executive GM Scott Swift said - (from here)

In a letter to passengers with tickets booked, V Australia executive GM Scott Swift said the carrier was "very sorry to have to tell you" of the deferred launch.

"Boeing has advised us that it cannot predict the duration of the strike. It is in these circumstances that we feel we have no choice but to delay our V Australia launch and have nominated a revised V Australia launch date of 28 February 2009 to protect the interests of our Guests," said Swift.

"We are one of a number of airlines impacted by the strike. V Australia has three Boeing 777-300ER aircraft in advanced production at the factory. The strike has no bearing on services operated by Virgin Blue, Pacific Blue or Polynesian Blue," he said.

The planes 138 passenger and 6 crew members weren't injured. The 20 years old airfare flew for the russian Airline  KD Avia from Barcelona to Kaliningrad. The crash occured 10:15 pm local time.

In terms of historical importance, this stands alongside India’s economic liberalisation that began in earnest in 1991, which in turn was the biggest event since independence in 1947 - ushered in by Jawaharlal Nehru as India’s “tryst with destiny”.

The price India has to pay for its new status is a close diplomatic relationship with America that looks fine now but could prove restrictive in the future.

Whether the deal proves to have been worthwhile will therefore depend on how successfully the Indian government and its companies utilise the access to nuclear and allied technologies, especially to solve India's dreadful power shortages, and how far the government manages to remain independent of the US in its foreign policy – for example on its close ties with Iran and Russia.
 
Both the 1991 and today’s events were ushered in by Manmohan Singh, now the prime minister and in 1991 the finance minister. But he was not the architect of the 1991 policy, though he is frequently given that title, because it had been designed earlier. Nor was he the instigator – that was Narasimha Rao, the prime minister who never gets the credit he deserves for appointing Mr Singh and telling him to get on with liberalisation and rescue India from a dire international financial crisis. (There’s a story that, when asked why he had chosen Mr Singh, Mr Rao said something like “because as a bureaucrat he’ll get the blame if it goes wrong but I’ll get the credit as a politician if it works” – how wrong he was!)

This time President Bush and his Secretary of State, Condoleezza Rice instigated the initiative, and were later backed up by Sonia Gandhi, president of the Congress Party and political head of the governing coalition. This paved the way for Mr Singh to introduce the deal.

But there is a major difference between 1991 and now. Last time Mr Singh toned down economic liberalisation as soon as Mr Rao decided that it was not good electoral politics. This time he has stuck to the deal, defying political opposition.

He let the tiresomely negative Left Front parties withdraw support from his Congress-led coalition, and then pushed the deal at the last minute, just before America’s imminent presidential elections. As a journalist used to writing a story right up to my editors’ deadlines, one has to admire Mr Singh’s sense of brinkmanship, reviving the deal when even the Bush regime thought it was dead.

What a surprise this is from an academic economist, former top bureaucrat, and reluctant politician. For most of his prime ministership, Mr Singh has been squeezed politically both by other ministers in the government, who have paid him scant respect and have preferred to cosy up to Sonia Gandhi, and by Mrs Gandhi herself who has always made it clear that she is in charge - she has a veto power over anything that the government does.

This time she let Mr Singh get on with his nuclear dream, but she also let it slide towards failure when faced with opposition from the Left, with whom she felt personally comfortable as allies. Rahul Gandhi, her son and the Congress Party’s anointed future prime minister, is reported to have tipped the balance by backing the deal and persuading his mother to let the Left withdraw. That gave Mr Singh the support he needed.

India can now move ahead on implementing its nuclear power programme. It wants to negotiate contracts quickly with French and Russian companies. France signed a civil nuclear co-operation deal on Tuesday and Areva is already talking to the government-owned Nuclear Power Corporation of India (NPCIL). Talks are also on with Rosatom State Nuclear Energy. And US firms such as GE and Westinghouse, which regard contracts as virtually their right, are in line - as are major defence companies such as Boeing and Lockheed Martin for aircraft and other deals.

India can also maintain its nuclear weapons programme, without international inspections, while knowing that the US will probably pull out of the deal if it ever conducts another nuclear test.

Indian companies will get large chunks of business constructing nuclear power stations and many will also benefit from being able to buy and sell high technology equipment in other areas that have been blocked for decades. The list includes companies such as Tata, Reliance (RIL), Larsen & Toubro, GMR, Hindustan Construction,  and Godrej, as well as NPCIL and other public sector corporations.

There will however be problems. It is relatively easy for India to run its relationship with the US while the current leaders are in power in both countries – and it has been in America’s interest to leave India relatively free while the deal has been going through. That though tells us nothing about how a future US government would react to India breaking ranks from an American line on, say, Iran.

But that’s for the future. Today India enters its new era and my guess is that history could well see Manmohan Singh as India’s greatest prime minister since Jawaharlal Nehru.

History, Reason and Benefits

The initial theoretical concept goes back to times before even the Wright Brothers first took to the skies in 1905, but it was picked up and developed by Richard T. Whitcomb of NASA after the 1973 oil crisis - in order to reduce fuel consumption. The first tests were carried out in 1979/80 in cooperation with the U.S. Air Force. At almost the same time, but independent of any U.S. military organization, a private jet producer, LearJet exhibited a prototype in 1977: the LearJet 28 that featured the first winglets on a jet and a production aircraft. Flight tests made with and without winglets showed that the winglets increased range by about 6.5 percent and also improved directional stability for the LearJet- these two factors are the major reasons behind using this facility at any fixed wing aircraft ever since.

A winglet is a (near) vertical extension of the wing tips. The upward angle of the winglet, its inward angle as well as its size and shape are critical for correct performance - this is why they can look quite different. Air rotating around the wing strikes the surface of the winglet that directs it in another direction - thus creating an extra force, basically converting otherwise wasted energy to thrust. This is a small contribution but can save a lot for an operator in an aircraft's lifetime. Another potential benefit of winglets is that they reduce the strength of wingtip vortices, which trail behind the plane. When other aircraft pass through these vortices, the turbulent air can cause loss of control, possibly resulting in an accident.

Winglet Types

In general any wingtips that not end the wing simply horizontally are considered as some kind of a winglet. Even though in strictly technical terms Wingtip Fences are not real extensions of the wing, and Raked Wingtips do not have a vertical part, they are still widely considered as winglet variants.

WINGTIP FENCES are a special variant of winglets, that extend both upward and downward from the tip of the wing. Preferred by European plane-maker Airbus, it is featured on their full product range (except the A330/340 family and the future A350). The Airbus A300 was actually the first jet airliner to feature this kind of solution by default, but it was a very small version of the tool. Provided that most of the Airbus planes (including all A320 family jets) feature such wingtip fences, this may be the most seen and most produced winglet type. Even the new Airbus A380 double-decker features wingtip fences.

BLENDED WINGLETS (the real "Winglets") are the most popular winglet type, leveraged by Airbus, Boeing, Embraer, Bombardier but also by Russian Tupolev and Iljushin. Blended winglets were first introduced on the McDonnel Douglas MD-11 aircraft in 1990 with launch customer Finnair (it also features a smaller winglet at the bottom side of the wing). In contrast to Airbus who applies the wingtip fences by default on most of their aircraft (and the winglets on the A330/340 family), blended winglets are considered by Boeing for example as an optional extra feature on their products, except for the Boeing 747-400. For some of the older Boeing jets (737 and 757) such blended winglets have been offered as an aftermarket retrofit, these are the newer, tall designs and do not connect to the tip of the wing with a sharp angle, but with a curve instead. These winglets are popular among airlines that fly these aircraft on medium/long haul routes as most of the real fuel savings materialize while cruising. Longer flights mean longer cruising, thus larger fuel savings. And they also server as marketing surface for airline logos or web addresses usually.

Just recently the Boeing 767-300ER has received 3.4 m high (!) winglets produced by Aviation Partners Inc. with American Airlines as the launch-customer with Air New Zealand and Hawaiian Airlines following with orders of 5 and 8 aircrafts respectively. 141 shipsets have been pre-sold already as the forecasted fuel savings range around 4%-6% for medium/long-range flights. Airbus earlier tested similar blended winglets designed by Winglet Technology for the A320 series, but determined that their benefits did not warrant further development and they stayed with the wingtip fences instead. Aviation Partners Boeing claims that winglets on 737s and 757s have saved a collective 1.2 billion gal. of fuel since they were introduced and 11.5 million tonnes of CO2 while reducing those types' noise footprint by 6.5%. It has sold winglets to 140 airlines and 95% of all 737NGs are fitted with them. It is working on four winglet concepts for the 777 and hopes to finalize a design for that aircraft type by December, 2008.

[caption id="attachment_1086" align="aligncenter" width="500" caption="Blended Winglets on Several Aircraft Types"][/caption]

RAKED WINGTIPS are the most recent winglet variants (they are probably better classified as special wings, though), where the tip of the wing has a higher degree of sweep than the rest of the wing. They are widely referred to as winglets, but they are better described as integrated wingtip extensions as they are (horizontal) additions to the existing wing, rather than the previously described (near) vertical solutions. The stated purpose of this additional feature is to improve fuel economy, climb performance and to shorten takeoff field length. It does this in much the same way as "traditional" winglets do. In testing by Boeing and NASA, raked wingtips have been shown to reduce drag by as much as 5.5%, as opposed to improvements of 3.5% to 4.5% from conventional winglets. Airliners to use raked wingtips: Boeing 747-8, Boeing 767-400ER, Boeing 777(-200LR; -300ER; and freighter versions) plus the new Boeing 787 Dreamliner and the Airbus A350. The 747-8, the 787 and the A350 will have special, new kind of wings, which do not have a separate winglet, but have raked, and blended wingtips integrated - without a sharp angle between the wing and the winglet.

As you can see, wingtips/winglets have developed and changed very much over the last 30 years, but are becoming the standard, which is not proven better by anything else than the wing designs of future aircraft by the largest airplane-makers that feature a built-in winglet at the tip of their new, revolutionary wings.

(Most of the winglet pictures in the montage images taken from airliners.net taken by several photographers.)

by balint01

I post some photos of the flight. I hope you will like it.

Departing from BGY and climbing to FL33

Landed at Lamezia

Canadair CL-415 parked in Lamezia Airport: the hot fire season is finished!

Our aircraft was the EI-DWE, year of construction 2007

Calabrian sunrise :-)

The return fly, the fuselage is reflecting on the left engine

The yellow interior of the aircraft

Landed at Bergamo. DHL's 757s at cargo appron

Bye, bye 738WL!

Mobile Press-Register: The Mobile paper has a long interview with Northrop Grumman's CEO on the KC-X tanker debacle.

Original Post:

The USAF has been overturned on yet another contract award concerning aerial tankers. A federal court overturned a maintenance contract for KC-135s awarded to Boeing after Alabama Aircraft (formerlly Pemco) protested to the GAO, lost, and sued. Alabama Aircraft's press release may be found here.

The contract is worth $1.1 billion.

The inability of the Air Force to conduct proper contract evaluations and awards is mind-boggling. Not only are there the high-profile issues with the KC-X program, dating to the 2001-2004 illegal conduct in that award, and the clear disregard for its own rules on eight critical points in the more recent award, the USAF couldn't even properly award a public relations contract for the Thunderbirds air show team.

Update, 11:45 AM PDT:

Reuters has this interview with Northrop Grumman's CEO about the decision by DOD Secretary Robert Gates to cancel the contract. The NGC CEO calls the move "chilling."

The capital markets were already driving up pricing on debt and driving out many lending institutions from the aviation market. Airbus and Boeing downplayed the declining credit markets (our conversations with them being about two weeks ago, before things really began to go south). Each believed that money to finance airplanes was available, albeit more expensive, and that neither would have to step up to provide backstop financing until the second half of next year. Part of this is the large segments of their respective order backlogs that are eligible for export credit financing backed by the European and US governments. In Boeing's case, the company has said on several occasions that about 83% of its backlog may be financed by the US Export-Import Bank. We don't have a figure for Airbus, but we believe that most of its backlog is similarly eligible for the European Credit Agency (ECA) financing.

Based on the information we had at the time, we generally agreed. But not now. ExIm or ECA or not, there still have to be viable banks and general market liquidity available for the credit agencies to provide guarantees for the funding.

The situation has changed so dramatically in just the last seven days that we are now concerned there will quickly be a financing crisis for the airlines. In this respect, the airlines may just decide that the longer a Boeing strike the better.

Our colleagues at Commercial Aviation Online, the finance-oriented publication of the Flight Global family, paints a dire picture emerging in aviation finance in our conversations with them. (We write for CAO as well.) But they are still constructing their stories, and we're obligated to me ambiguous at this stage. Furthermore, it's a paid-subscription service, so while we'll be able to synopsize stories when the time comes, we won't' be able to fully reproduce them here. But the bottom line is that things are going south faster than anyone believed in aviation finance.

Update, September 30: Bloomberg News has this short item about customers for Embraer having difficulting financing the planes that were ordered. Brazil, like the US, Europe and Canada (for Bombardier), offers export financing support, too.

Update, 11:45 AM PDT: Commercial Aviation Online posted its story. (Paid subscription required.) Here are some excerpts:

With no US bailout package on the table, the aviation finance market remains frozen unable to make sound decisions in an uncertain climate.

"Right now, there is no interbank lending and banks are hoarding cash. Most bankers are putting off any decisions because there are no good decisions right now," says a London-based banker.

He adds: "It is hard to say anything concrete right now except that if the current crisis continues, we are in big trouble. However, even with a US bailout don't expect a panacea. What we are seeing now is what happened to the Japanese banks. It will take five to ten years to get out of this mess."

Due to uncertain market conditions, a number of aviation deals that are currently in the works are likely to be renegotiated.

"No one wants a RFP right now. Everything is being delayed and many deals will have to be revisited," says another banker.