Top lawmaker eyes subsidy review on tanker deal

“If the Air Force determines that the subsidy did impact the competition, then it must find a way to remove the impact from the competition to ensure the fairness of the process”

The head of the U.S. House of Representatives Armed Services Committee is conditionally seeking a review of any illegal subsidies' role in a $35 billion refueling-aircraft contest lost by Boeing Co, a committee ... via Reuters

[Annon]

Forgive me if I’m less than enthusiastic about congress’ latest effort. If Europe wants to subsidize US defense purchases, so be it; particularly if, as is the case here, the subsidy results in a contract that creates jobs primarily for Americans and whose profits are split between the subsidized entity and an American company.
While the traditional economic arguments against subsidies have been that they move funds to inefficient manufacturers and thus may force efficient, forward thinking producers out of business, that hardly seems to be the case here. First, while there is no doubt that Airbus is a less efficient commercial manufacturer of airplanes then Boeing, we mustn’t forget that we are talking about a government contract here. As someone in the business, I feel comfortable saying that the marginal difference between two companies efficiencies in the production of an item (even a complex item like an airplane) is greatly outweighed by the general inefficiencies cast upon all contractors by the government. Secondly, is anyone actually afraid that Airbus is going to force Boeing out of business?? Despite the mammoth size of this contract, it is still small-potatoes compared to the commercial market, which, as the events of last summer indicate, Boeing has an increasing stranglehold on.
What I see here is the nations of Europe agreeing to take some of their citizen’s hard-earned tax money and use it to allow a company to sell military hardware (that will be made by US citizens) to the US at a reduced price. Were I a blue-collar worker living in Paris I would be pissed. However I am a US citizen so I say “Bring on the cheap(er) tankers!”

[cats]

Check out www.americasnewtanker.com and www.northropgrumman.com . Lots of information about Americas New Tanker and the US companies and US States that will prosper from this award.
Way to go Northrop Grumman!!!