Aircraft contract hits turbulence

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As the early presidential debates for both parties get under way, there will be a lot of cheap talk about driving the U.S. economy forward as well as protecting our national security at home and our interests abroad. But the more successful candidates will likely be those who can connect with voters on real-life issues instead of relying on bland abstractions.

One such real-life issue that will affect our national security and the health of the U.S. economy -- in Utah as well as all over the country -- is a high-stakes competition between Boeing and French aerospace company Airbus, who are both vying to win a critical defense contract worth more than $40 billion.

What's at stake for Utahfi Hundreds of good-paying American jobs to build the Air Force's next fleet of refueling tanker planes -- critical support aircraft for U.S. troops spread across the world. Boeing's plan for their tanker would support 44,000 well-paying American jobs -- 600 jobs in shops right here in Utah along with $22 million in investment -- and high-level research and development for critical military assets would stay in the U.S. Airbus has promised 25,000 U.S. jobs for their tanker plane but is keeping its lips tightly sealed on details, leading many to bet that the actual U.S. jobs number will be much lower. After all, Airbus barely employs 500 people in the U.S. right now, compared to Boeing's 130,000.

Of course, a competition to build such a critical military asset shouldn't be decided on the basis of protectionism. In fact, the Department of Defense has gone the extra mile, holding a new competition for the tanker contract after a no-bid award to Boeing generated sensible protests; the Air Force is depending on a vigorous, fair competition to produce the best plane.

That's why it's so unfortunate that Airbus is trying to cheat the system in order to win. Like a professional baseball player on steroids, Airbus is using some $100 billion in illegal government subsidies that are currently the subject of the largest legal battle ever brought before the World Trade Organization, where the U.S. Trade Representative has accused the European Union of attempting to directly undermine the U.S. commercial airline industry. In a new twist on this sordid affair, Airbus has based their military tanker design on their commercial A330 jetliner -- a plane that was the direct product of these billions of dollars in illegal subsidies.

Years ago, Groucho Marx once told a joke about two groups of sailors on a sinking ship. One group was trying courageously to plug the hole in the bottom of the boat; the other group foolishly drilled a new hole in the boat, thinking they would just let the water out. Something analogous is being considered here; while the USTR sues the EU and Airbus over billions in illegal subsidies, Airbus is simultaneously trying to persuade the DOD to have U.S. taxpayers foot the bill for aircraft constructed using the same illegal subsidies. Are we really so blind that our right hand doesn't know what our left is doingfi

And there is more at stake than just producing the best plane, the rules of fair trade and American jobs. If Airbus is willing to undermine the U.S. economy in favor of the EU order to win the contract, it's hardly a stretch of the imagination that they might withhold critical tanker aircraft should the French government disagree with American foreign policy. It's a scary scenario, but not one that's outside the realm of possibility.

The Department of Defense is pinning its hopes of producing a great tanker aircraft on a fair and open competition between rivals. However, considering Airbus's use of billions of dollars in illegal subsidies, the Department can't approach this matter in a vacuum. Open competition and fair trade must peacefully coexist. The Department of Defense should make sure that they do.

Ed Mayne is a Utah state senator from District 5 (West Valley City) and the president of the Utah State AFL-CIO.

This story appeared in The Daily Herald on page A5.

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