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Airbus Alleges U.S. Interference in Boeing Deal

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AIRBUSAirbus, European based leading aircraft manufacture, accused the United States government of disrupting competition of an order by taking the side of Boeing Co. (NYSE:BA) to facilitate it win a $22 billion aircraft deal in Indonesia.

John Leahy, Chief Executive Officer at Airbus, said lobbying over the aircraft deal on behalf of U.S. President Barack Obama had proved double standards on free market race that is ongoing row between Europe and Washington over aircraft wanes.

Leahy on Thursday at a market briefing in Washington said that there is only one superpower in the whole world and it’s not France, it is probably represented by U.S. president Barack Obama. Last month, an order of 230 aircrafts was showcased by Obama from Lion Air, Indonesian budget carrier, worth $21.7 billion at list rates, Boeing’s largest commercial deal so far.


The $21.7 billion deal came months later following a dramatic coup by the European airplane manufacturer, when it landed its own biggest order for 260 airplanes, in volume terms, from American Airlines, toppling Boeing’s exclusive customer. This move encouraged Boeing to change strategies by refreshing its most sold 737 model airplanes with new engines.

At the Lion air deal signing ceremony, a Pacific tour for nine days in November, Obama called the deal a win for U.S. workers and Asian customers and said his administration and the Export-Import Bank played a major role in getting the deal done. The U.S. government said that it would brace 110.000 industrial jobs, addressing a key issue in 2012 elections.

According to analysts the deal between Lion Air and Airbus must have been a surprise since it has an all Boeing team and the European airplane manufacturer in the past had attempted and failed to win business. However, disclosing secretive yet fruitless talks to enter Boeing’s territory for the second time, chief of Airbus said that they would have won the deal if there was no political interference.

 

Leahy said, CEO of Lion Air had actually come to meet him in Toulouse twice to negotiate about purchasing airplanes however in the end he told him that he was left option less. Leahy added that he was not sure what he meant by option less, but he feels there was lot of political influence and he feels that the U.S. government is very proud they got the deal.

 

No immediate response from White House was obtained and a spokesperson for Boeing said that the company never comments on such negotiations.

 

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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