Boeing used to be the exclusive supplier to American Airlines until recently, but now, they have to share the largest aircraft order in aviation history with Europe’s Airbus. Boeing got less than half the order.
Some, like Barrons, say it is due to Airbus having more efficient engines, and American’s spokespeople say that one company couldn’t handle the demands of the order.
But on a CBS interview by Rebecca Jarvis on the Early Show the other day, she asked if “recent labor problems at Boeing” were what caused AA to hedge its bets and split the deal. The AA guy denied this, giving the reasons cited above, but in a different interview, the question was raised more explicitly (about the 1:38 mark), indicating that industry analysts suspect the union problems caused the airline to drop its exclusivity with Boeing.
In my considered opinion, this is the real problem. The unions, and the Øbama administration’s NLRB, in order to keep union jobs in a non right to work state, have cut off their noses (heads?) to spite their faces, and lost half of an enormous contract with American Airlines. In order to prevent non-union workers from getting a piece of the pie, they have exported jobs overseas, and lost half of the pie. Now Airbus has a major foothold in the American market thanks to selfish union bullying tactics, and a complicit administration.
Now there’s genius for you. Is it a “shovel ready job” when you are digging your own grave?