jetjockey696
2nd Dec 2011, 17:47
Airbus accused the White House of derailing open competition by helping Boeing win a record aircraft deal in Indonesia as details emerged of a behind-the-scenes struggle over jobs and jet sales worth almost $22 billion.
The European plane maker’s sales chief said lobbying over the deal by President Barack Obama had revealed double standards on free-market competition.
“There’s only one superpower in the world and I think we know it isn’t France; it is probably represented by President Obama,” John Leahy said on Thursday.
“When he starts making headlines that he is selling airplanes and how that wouldn’t happen without his personal involvement, we are seeing economic distortion and we shouldn’t be talking about free and open level playing fields for trade around the world if the US pulls stuff like that.”
Last month, Obama showcased an order for 230 jets from budget carrier Lion Air worth $21.7 billion, the largest commercial deal in Boeing’s history.
That came months after Airbus pulled off a dramatic coup by landing its own largest order in volume terms for 260 aircraft from American Airlines, toppling an exclusive Boeing customer.
The move prompted Boeing to alter its strategy and match Airbus by refreshing its most-sold 737 model with new engines.
Attending the Lion Air signing ceremony during a nine-day Pacific tour in November, Obama called the deal a “win-win” for US workers and Asian consumers and said his administration played a key role in facilitating the sale.
The White House said it would support 110,000 industrial US jobs, addressing a key issue in next year’s elections. Analysts say a deal between Lion Air and Airbus would have been a surprise since it has an all-Boeing fleet and Airbus has previously tried and failed to win its business.
Lifting the lid on secretive yet fruitless negotiations to invade Boeing’s turf a second time, Leahy said Airbus might have won a deal if not for US intervention. “The CEO and owner of that airline … actually came to see me in Toulouse twice to talk about buying the airplanes and in the end told me he had no choice,” he said.
“I am not sure what ‘has no choice’ means, but there seems to have been an awful lot of political interference and I think the White House is very proud of that, taking credit for it, saying it would not have happened without White House intervention. Well, that is probably true, but it doesn’t really speak well for freedom of competition and free trade.”
There was no immediate comment from the White House. A Boeing spokesman said it doesn’t comment on such negotiations.
A person with direct knowledge of the talks said Airbus got as far as reaching a provisional deal known as a memorandum of understanding with Lion Air, which though non-binding, usually signals an end to competition. Lion Air declined to comment, but denied bowing to pressure.
“I do not wish to comment on that issue, but all I can say is we did the purchase purely on a commercial basis and we have our independence in doing so,” spokesman Edward Sirait said.
Reuters
The European plane maker’s sales chief said lobbying over the deal by President Barack Obama had revealed double standards on free-market competition.
“There’s only one superpower in the world and I think we know it isn’t France; it is probably represented by President Obama,” John Leahy said on Thursday.
“When he starts making headlines that he is selling airplanes and how that wouldn’t happen without his personal involvement, we are seeing economic distortion and we shouldn’t be talking about free and open level playing fields for trade around the world if the US pulls stuff like that.”
Last month, Obama showcased an order for 230 jets from budget carrier Lion Air worth $21.7 billion, the largest commercial deal in Boeing’s history.
That came months after Airbus pulled off a dramatic coup by landing its own largest order in volume terms for 260 aircraft from American Airlines, toppling an exclusive Boeing customer.
The move prompted Boeing to alter its strategy and match Airbus by refreshing its most-sold 737 model with new engines.
Attending the Lion Air signing ceremony during a nine-day Pacific tour in November, Obama called the deal a “win-win” for US workers and Asian consumers and said his administration played a key role in facilitating the sale.
The White House said it would support 110,000 industrial US jobs, addressing a key issue in next year’s elections. Analysts say a deal between Lion Air and Airbus would have been a surprise since it has an all-Boeing fleet and Airbus has previously tried and failed to win its business.
Lifting the lid on secretive yet fruitless negotiations to invade Boeing’s turf a second time, Leahy said Airbus might have won a deal if not for US intervention. “The CEO and owner of that airline … actually came to see me in Toulouse twice to talk about buying the airplanes and in the end told me he had no choice,” he said.
“I am not sure what ‘has no choice’ means, but there seems to have been an awful lot of political interference and I think the White House is very proud of that, taking credit for it, saying it would not have happened without White House intervention. Well, that is probably true, but it doesn’t really speak well for freedom of competition and free trade.”
There was no immediate comment from the White House. A Boeing spokesman said it doesn’t comment on such negotiations.
A person with direct knowledge of the talks said Airbus got as far as reaching a provisional deal known as a memorandum of understanding with Lion Air, which though non-binding, usually signals an end to competition. Lion Air declined to comment, but denied bowing to pressure.
“I do not wish to comment on that issue, but all I can say is we did the purchase purely on a commercial basis and we have our independence in doing so,” spokesman Edward Sirait said.
Reuters