Mon, Aug 14, 2006
Comes Over Protests From Airbus
Some good news for Boeing, but not without some controversy...
as the Canadian Press reports that, as expected, the American
aerospace manufacturer has "a lock" on a total of $8 billion in
contracts to supply Canadian Forces with four new C-17 Globemaster
III transport planes, as well as 16 heavy-lifting Chinook
In a statement released Friday, Canadian Public Works Minister
Michael Fortier said all that's left is to finalize the terms of
As is typical, what's good news for Boeing is bad news for rival
Airbus Industrie of Europe (and vice versa.) In this case, Airbus
also placed a bid for the deal... while also complaining the
bidding process unfairly favored the North American
How truthful those accusations are is subject to debate
(and Boeing is no stranger to
accusations of questionable procurement deals.) There
is no debate, however, over the value of such a deal -- which also
includes maintenance work for all the aircraft involved.
Perhaps Airbus can do better with Canada's proposal to replace
its aging C-130 Hercules transports with 17 new aircraft...
although industry observers report that, once again, Canada seems
to have its heart on the American competitor... in this case,
original C-130 manufacturer Lockheed Martin.
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