Northrop Grumman
Posted at 1:30am on Feb. 26, 2008 Airbus Spies With Its Little Eye?
By Pejman Yousefzadeh
Boeing is based in Chicago and as a Chicago lad, I rather like it when hometown industries do well. Good for the local economy and all that. However, being the free marketeer that I am, I want there to be tough, vigorous competition in all instances where companies vie for business and work.
Boeing is currently vying for some business from the United States government:
The government is due to pick the winner this week in a huge warplane competition that pits No. 2 U.S. defense contractor Boeing Co (BA.N: Quote, Profile, Research) against a team made of No. 3 Northrop Grumman Corp (NOC.N: Quote, Profile, Research) and its European partner, Airbus parent EADS (EAD.PA: Quote, Profile, Research).
Closely watched on both sides of the Atlantic, the battle involves one of the largest airplane orders expected for years to come. Each of the teams has spent tens of millions to hone its proposal, advertise it widely, and enlist high-profile former generals to underscore the merits.
Most defense analysts expect Chicago-based Boeing to win the contract for 179 new aerial refueling tankers, valued at $30 billion to $40 billion over the next 10 to 15 years, but Northrop insists it has a fighting chance.
May the better company win. But somehow, I have a hard time believing that the better company will or should be Airbus. No offense intended against our European friends, but when your employees periodically go on strike, it tends--or at least should tend--to reduce confidence in your workmanship. Also, there is that whole industrial espionage bit, which ain't all that appealing.
