The Confluence of Short-sighted Business Decisions, Large Contracts and Government

Pilot's view of air-to-air refueling with a 'boomer'

Francisco Javier Cruz Hernández wrote:

Boeing's outsourcing of production of the KC-767: is this the claimed Boeing’s “made in America"?

Boeing KC-767

There is a classic urban legend that tells that "buying Boeing" means protecting American jobs. Boeing has outsourced a lot of the B767 airframe. Whether you review part by part, you can conclude that most of the B767 is coming from overseas. Let's go to the specific data: the fuselage, tail, wings, doors, landing gear and other major components for Boeing's KC-767 are built subcontracted in Japan and Italy. In fact, the tendency is Boeing is shifting more and more workpackages related to B767 to Italy and Japan.

The motives for Boeing’s outsourcing to Japan and Italy are to access these markets, to spread risk, to gain access to capital, and lower US spending on research and development.
This has clear implications for US trade and employment, in that Japanese and Italian subcontracting boosts foreign imports and reduces the need for domestic production workers and US suppliers.

Boeing has opted for a systems integration mode of production. Under this system, key components and sub-assemblies are designed and manufactured by external suppliers. Boeing has especially favored Japanese companies for major subcontracts. The Boeing B767 was the first US aircraft program that entailed substantial outsourcing in aircraft manufacturing since 1970.

Japan aerospace industry (Mitsubishi, Fuji and Kawasaki) builds a high percentage of the Boeing 767. And this outsourcing is growing at a high rate. Boeing is going to contract 35 percent of the B787-airframe structures to Japan.

Therefore, if you compare the KC-767 vs. KC-45, you can realize that Boeing KC-767 is comprised of more foreign made components than the EADS North America KC-45 Tanker. While Boeing is dis-investing in America aviation industry, EADS will invest in the development of the aviation industry in America. EADS North America has a real commitment to American industry and workers.

Airbus/EADS KC-45

 Boeing has come to rely more and more on Japanese and Italian subcontractors. Boeing is transferring large quantities of previously American aerospace jobs to Japanese and Italian aerospace consortiums. Adding salt to the American economy’s wounds because that much of the B767 was developed with help from U.S. taxpayers, spite of that fact, the most of the Boeing 767 and KC-767 are built in Japan and Italy rather than in the United States.

And of course, Frank's Take on This Whole Boondoggle...!

Pilot's view of air-to-air refueling using a drogue trailed behind each wing

I was working out of southern Alabama when the tanker project was 'awarded' to them - the Mobile area was ecstatic with, what would have been the creation of more than 300 high-paying jobs from EADS, not to mention all of the residual business that would have resulted, with an overall impact in excess of 1000 new positions for the region. As a former Boeing ME, and not much of an Airbus fan, I was partial to them winning the contract. However my position was changed once I and my friends (also former Boeing employees) reviewed the comparison of the specs for these aircraft - the 330 was easily the best platform for this mission. Still, I hoped that they would split the award, with a 50/50 purchase; it worked fine having both KC-10's and KC-135's in the fleet, so it seemed like a good 'Solomon-esque' decision... lol

Seeing what the Mobile area was going through during that time, it was obvious that they needed this to change their economic situation. Although the rest of the country was experiencing a boom, Mobile was desperately trying to get its economy off the ground. My friends there tell me that now it's much, much worse.

Not only Mobile would have gained, but South Carolina was also poised to see a large influx of work from this contract, although I was not keeping-up with that part of the proposed distribution, although the official projections from EADS were at 1500 direct hires at last count. Needless to say, the overall impact to that part of the country would have been enormous and could have stemmed a great deal of the recession's effect to those two regions.

Boeing's projections were merely to use existing manufacturing lines (we now know they were mostly in Japan and Italy) and integrate the program into the 767 production - no measurable growth in US positions.

My position on the program became cemented in opposition to my previous employer, the people of Mobile deserved this and the 330 was the right choice for a good many reasons.  

Boeing workers 'protesting' 

 

It All Gets Nasty...!

I remember when Congress got involved, they cited the fact that it was "sending American jobs overseas" and that had to be stopped.

A parade of US Congressmen ranted and raved about the 'flawed awarding process' on the talk shows and television crews filmed staged protest rallies of US aerospace workers - btw, who were paid by Boeing to do so during their normal working hours. Some cheap publicity orchestrated by Boeing to create a backlash to the Pentagon's decision.

... and it worked - the White House stepped-in and postponed the award citing the need to 'review' the process.
 

To read Mr. Hernández's account of Boeing's current contract distribution for the 767, it sickens me to my core, although it doesn't surprise me either.

 

While at Boeing, I watched our management take entire divisions of what was once a massive McDonnell Douglas facility's machining equipment and sell it off in large crates directly to China, simultaneously laying-off an army of 20+ year machinists with the intent to "contract that work out" in the future. Meanwhile those highly-skilled men hit the bricks looking for work and management all received bonuses for 'improving shareholder value'.

I also watched them send large sections of our composite production overseas, and along with it, the technological capability. The company it was sent to is now an industry leader and a direct competitor to Boeing, which was 'unthinkable' at the time but a predictable result for all all of us who were not part of that decision process.

While I was working out of Florida on another Boeing contract, the company was caught actually bribing a Pentagon official, Darleen Druyen with a juicy position offered to her in exchange for a favorable decision in contract awarding. Mike Sears, the Boeing CFO that hired Druyun, was sentenced to four months for aiding and abetting an illegal employment negotiation. She served 9-month in Federal prison. The s**t really hit the fan after that one, I remember!

Still Serving With Distinction

 

 

And meanwhile, the current fleet of USAF tankers, continue to fly countless sorties, participating in operations all over the globe, serving a vital role for our nation's military. However, with all of these aircraft having been built more than 40 years ago, everyone knows that the clock is running-out very quickly for them. The decision to award this contract must be made very soon, as delivery will require time to ramp-up. While big business plays games with politics, the military suffers the consequences.

Unfortunately, at the confluence of short-sighted businesses, large contracts and government, you will often find deep corruption, bad decisions and terrible lies to cover them up. This whole episode serves as a classic example.

f

A Close Call

(this one comes from my friend Terry)

Pilot Capt. Brian Bews ejects as his a CF-18 fighter jet plummets to the ground during a practice flight for an air show in Lethbridge, Alberta, Canada, on Friday, July 23, 2010. 

having a bad day at work?

Have you ever felt like this

when you are overloaded by your boss ???

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...ah, reminds me of my days at Boeing, lol

f

Always Ask - Never Assume !!

His request approved, the CNN News photographer quickly used a cell phone to call the local airport to charter a flight.

He was told a twin-engine plane would be waiting for him at the airport.

Arriving at the airfield, he spotted a plane warming up outside a hangar.

He jumped in with his bag, slammed the door shut, and shouted, 'Let's go!'.

The pilot taxied out, swung the plane into the wind and took off.

Once in the air, the photographer instructed the pilot, 'Fly over the valley and make low passes so I can take pictures of the fires on the hillsides.'

'Why?' asked the pilot.

He responded, 'I need to get some close up shots.'

'But Why, I don't understand?!' repeated the pilot, a bit puzzled.

'Because I'm a photographer for CNN; I need the shots the news this evening!' he insisted,

The pilot was strangely silent for a moment, finally he stammered, 'So, what you're telling me, is . . . You're NOT my flight instructor?!!'

"Life is short. Drink the good wine first"

(thanks Maribeth)

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An Old Pilot

Ya think you have lived a good, long life and know who you are, then along comes someone and blows it all to hell!

An old pilot, wearing his flight jacket, sat down at the Starbucks and ordered a cup of coffee.

As he sat sipping his coffee, a young woman sat down next to him..

She turned to the pilot and asked, 'Excuse me, are you a real pilot?'

He replied, 'Well, I've spent my whole life flying biplanes, Cubs, Aeronca's, Pipers, flew a B-29 in WWII, and an F-86 Sabre Jet later in the Korean conflict, taught 50 people to fly and gave rides to hundreds, so I guess I am a pilot.'

'What about you?' he asked.

She said, 'I'm a lesbian. I spend my whole day thinking about naked women. As soon as I get up in the morning, I think about naked women. When I shower, I think about naked women. When I watch TV, I think about naked women. It seems everything makes me think of naked women.'

The two sat sipping in silence.

A little while later, a young man sat down on the other side of the old pilot and asked, 'Are you a real pilot?'

He replied, 'I always thought I was, but I just found out I'm a lesbian.

f

howdy from (way) south of the border ...!

Scene:
a man oddly-dressed stand atop a hillside and appears to be creating massive explosions with the wave of his hands.

They call me, frank...?

yet more explosions and then a bit of applause.


Life has taken an interesting turn - even moreso than what is my usual, which my friends will agree is quite dynamic. Between the all of the trips and projects undertaken, even I lose track of where reality stops and my life takes over (...if that makes any sense, lol).


A little about me:

I'm an aircraft/aerospace guy who's spent most of his time on this '3rd rock' building, flying, studying, repairing, researching, busting his knuckles on, and in general, immersed in airplanes. Ever since my dad gave me a model of a wood & fabric fighter from the Great War, I have been smitten with the damned things and even when, " ...I tried to get out, they pulled me back in."
I know that the profession, and my resultant lifestyle has at least in part, left several once-great relationships in it's wake. I feel that while I'm very lucky in my work to be in my current position, it has come at, some would assert, great cost to those I have tried to build a life with. To them, I say thank you for trying to be patient with me and I'm especially grateful that they did not get angry enough to stab me in the shower. lol
I try not to annoy my friends with the subject, for those not interested, please forgive the occasional digression into the subject.

Further, I found that my once-dabbling into the area of musicianship had become a major focus in my life, at least on a semi-amateur level while working as a consultant on the Gulf Coast of the US. One thing that that experience taught me was how the live music industry works, at least on the lower levels, and that it is a real pain in the ass! I can remember spending entire days on the phone and traveling around, trying to find gigs for my band and the logistics required certainly added to the grey hair that Boeing initially gave me.
This was the impetus for 'Gigbag'.

As the blog's title suggests, I and my friends both near and far have embarked on an Internet project called 'Gigbag.com', which, with a lot of hard work and just a bit of luck will become a part of the lives of anyone who enjoys and/or is involved with live music. But more about that later...

Now, due to my current change in constraints, I find myself deep in the heart of Mexico still consulting for the airline in the US, (which I travel to on occasion), yet living in a fascinating place called 'the cradle of independence'.

To not document it would be a loss to posterity, in my most humble opinion.

Btw, I'd also like to include some fun into this blog so as to not make it too serious. I include jokes, etc also to give insight into my so-called sense of humor. I promise to only post the ones that really make me laugh and not just something to fill the gaps, so-to-speak.



Blog entry No. 1, here we go:

(crafted from an earlier email)

Just doing the usual, sitting here at the patio of Harry's sipping on 2-1 margaritas (goooooooood tequila for about $1!!!), working on the laptop. The rum here is also exceptional, with the top-shelf brand being Havana Club 7 Aneos (aged seven years in Cuba); amazingly good and quite inexpensive, of course.

I have a new home! I spent the weekend house-hunting and found a cute little penthouse very near the center of town. It has a decent view and, unlike most of the places down there, it's quite modern. The owner/builder of the penthouse is an old ex-pat Scotsman who has lived in the city for several decades and re-built the whole building almost completely, leaving the original facade outside, which is required by the city preservation laws.

The entire area is designated as a UNESCO world heritage site as most of the buildings date back to the 1600/1700's. When I look out my patio, to the right about 50 ft away, I see a wall that was constructed about 300 years ago and you can see how the builders used a decorative spiraling brick pattern, just to an a little elegant flair to it. It makes me happy every time I see it knowing that centuries-old creations, even minor ones, can connect people from such different times and cultures. It can be a magical place, this Mexico.

There is a smaller international airport just outside of town, designated airport code QRO. It's serviced once a day by Continental through Houston Int'l, who flies CRJ's as their primary regional fleet.

For about $85/night, you can live in a former palace of what was once the seat of government when Mexico was once the largest jewel in the Spanish empire. Weekdays are nice, but weekends are the best time to be here as that's when all of the big festivals happen - a big party practically right in my front yard.



Yes, life is really good here in Mexico, but a bit lonely not being fluent (yet!). Luckily there are enough people that I meet who do speak at least some English, and all of them are happy to have someone to practice their English with. With time and a lot of practice my Spanish will improve so that will change very soon.

Thanks for reading, everyone!

frank