U.S. Supply: outcry in Europe
Louis Welsh, president of EADS, on Tuesday presented the results of fiscal 2009 marked a net loss of 763 million euros, with heavy consequences including increased provisions under the Airbus A400M and the effect of exchange Euro-dollar negative (1 billion euros for the third consecutive year).
But observers have in mind the case of U.S. tanker. The defense giant Northrop Grumman American announced that he would compete to win a contract for 35 billion dollars to provide 179 refueling aircraft to the U.S. Army. This is the first installment of a giant order of 500 aircraft for 100 billion dollars. Northrop said that the criteria of the tender favored Boeing, also nominated. Consequently, EADS, his partner had no choice but to throw in the towel.
The news caused an outcry in Europe.«(…) During the current crisis, the smallest signs of protectionism are harmful, "accused Br?derle Rainer, German Minister of Economy," even in the field of defense, free competition should not be hampered unilaterally. The Foreign Office warned that "France, with the European Commission and its European partners concerned will proceed to the consideration of this new development and its possible implications.
A complaint before the World Trade Organization (WTO) seems to be excluded because it is not competent defense. And it can not intervene following a sovereign decision taken by a private company, namely Northrop. Louis Welsh did not want polemics or insult the future: "I am not a politician but an industrialist. I am part of a fact.The U.S. market remains a priority for us. "He was careful not to comment on the decision of its American ally. Northrop could have filed an appeal before a federal judge because he had a strong case. He preferred to drop and de facto release EADS. For the Democrats who control Congress have pushed the message. We must leave the field open for Boeing needs this contract to stay in the field of military aviation. Boeing, whose headquarters are located in Chicago, a stronghold of President Obama. Northrop would have been assured of being able to catch up on other contracts. He could not alienate its biggest customer, the Pentagon, who can not stand to see its decisions appealed to the GAO, the U.S. equivalent of the Court of Auditors. This was the case in early 2008 when Boeing was denied victory by Northrop and EADS.And succeeded.
Result, the U.S. Army for ten years waiting for its new tanker. Today is back to square one with, as in 2001, only one bid. It is possible that again the Republicans react as they reject the absence of competition.
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