Article

2003-04-30 Europe

U.S. Top Military Officials to Skip Paris Show, Business Says

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Posted by ISHMAIL 2003-04-30 04:03 am|| || Front Page|| [11129 views since 2007-05-07] Top

#1 There have been reports circulating around that France is bound to suffer a back lash of economic and political losses at American hands.
Repercussion against France are likely to range widely, from moves to reduce the importance of the Security Council and other international bodies that buoy French prestige to trans-Atlantic industrial co operations that infuse American technology into French companies.
Most irrepressible of all the responses noted are the consumer goods that the French companies provide in shape of products.
Washington is looking at the possibility of introducing reforms at the Security Council that will downgrade French role. These could be in shape of a much enlarged Security Council in which a veto would require "no" votes from at least two members - and either France or Britain would have to give up their permanent seats to create a single seat for the entire European Union.
U.S. boycott will hurt French Airbus Industrie when American companies will not only refuse to buy aircraft and other items manufactured in France but also by actively trying to replace France in other world export markets. Fifty percent of the entire Airbus sales come from American airlines.
Those standing to be damaged most are major French companies that depend on cooperation with U.S. manufacturers. These are THALES that partner with Raytheon in electronic warfare or SNECMA with General Electric in aircraft engines. The Pentagon is said to be looking in areas that will block French defense contactors from gaining access to U.S. technology.
On a worser note American investment are likely to be sucked out the Paris stock market depriving the bourse that account for up to one-fourth of the total capitalization of the exchange. As of immediate many major French companies desperately need fresh transfusion following sharp slumps in their sectors.
One more vulnerable company that stands to suffer is TotalFinaElf SA. It presently has interests in Iraqâs major oil fields. The French oil giant had signed prodigious contracts, lopsidedly favorable to France valuing as much as $50 billion. With the departing Iraqi regime and the U.S. military victory in Iraq mean that the French foothold would be lost forever.
Further more these contracts are crookedly favorable to France that neither any successor regime would respect them nor the French are likely to make good a legal case in any court house.
But Jacques Chirac has brushed aside such threats as he thinks these moves will be ruled out by the World Trade Organization. Mr. Chirac nurses the idea that in globalized economy, many U.S. jobs depend on American sales to France and even French-owned companies in the United States.
Many readers will be able to recall the time when France under Chirac resumed nuclear testing in the Pacific in 1995. The Clinton administration though voicing limited criticism still gave French military scientists access to U.S. technology for simulating nuclear explosions. In the present circumstances that all looks impossible.
Sensible French officials are not taking comfort in wait-and-see policy as they witness U.S. retaliation has started already, in shape of a commercial war. Washington successfully pressed the Czech Republic and Poland, both members of the European Union, to buy warplanes from the United States instead of Britain and France.
But it is certainly a matter of wisdom to protect oneself from negative eventualities as US makes sure that it never gets caught again in a diplomatic entangle like it faced in Security Council , NATO or in letting characters like Villepin make political capital for future as Mr. Chirac prepares him as his likely successor.

Omer Ishmail

Posted by Omer Ishmail 2003-04-30 05:26:03|| 2003-04-30 05:26:03|| Front Page Top

#2 *nods* In addition to Omer's excellent observations, I want to add the proviso that, even though Airbus sales of new aircraft may drop, the existing fleet still has to be maintained. It MAY be possible for France to put the hurt on US airlines by forbidding sales of replacement and repair parts, but that would be cutting off their nose to spite their face. Even then, they would have to know, from personal experience, that such an "economic sanctions" regime can be easly circumvented. They may think they were oh-so-clever in getting around the Iraq economic sanctions, but they should bother to take a look at the period of American history known as Prohibition to realize they are mere pikers when compared to some real Pros...

Posted by Ptah 2003-04-30 06:58:42|| [www.crusaderwarcollege.org] 2003-04-30 06:58:42|| Front Page Top

#3 Even an increase in perceived risk in purchasing aircraft could hurt Airbus sales -- that applies to airlines being concerned about customer perception ("I won't fly on an Airbus -- got a flight that uses a 737?") or availability of spare parts and/or services.

Posted by snellenr 2003-04-30 10:11:20|| 2003-04-30 10:11:20|| Front Page Top

#4 Oh, and I'm SO disappointed with the Army: I'd have thought they'd have tried to outdo the Navy and only send Majors...

Posted by Ptah 2003-04-30 08:48:22|| [www.crusaderwarcollege.org] 2003-04-30 08:48:22|| Front Page Top

#5 Somebody needs to mention that to Jet Blue, they just placed a big order for Airbuses.

Posted by Steve 2003-04-30 10:36:47|| 2003-04-30 10:36:47|| Front Page Top

#6 The American Public may easily say,

"If it ain't Boeing, I ain't going."

People are looking for tangible things to grab onto for a boycott. They are very angry with Chiraq's French govt.

Posted by Alaska Paul 2003-04-30 10:55:37|| 2003-04-30 10:55:37|| Front Page Top

#7 Steve,

Very good point. I just left a comment at Jet Blue that I won't be using them if they buy French planes over American. Anyone else interested in voicing their opinions can do so at

www.jetblue.com/speakup/problems.asp

(Sorry, couldn't make the link button work)

Posted by RonB 2003-04-30 11:39:08|| 2003-04-30 11:39:08|| Front Page Top

#8 Steve: It'll be interesting to see whether Southwest (who only uses Boeing 737) starts to emphasize its "all-American" fleet in advertising (assuming they haven't already)...

Posted by snellenr 2003-04-30 11:46:33|| 2003-04-30 11:46:33|| Front Page Top

#9 Here's an interesting bit from Reuters:
TOULOUSE, France - The head of European airplane maker Airbus said on Wednesday that Pratt & Whitney had made a bid to supply engines for the A400M military transport plane that was 20 percent lower than its rival. But Noel Forgeard told reporters he had been asked to delay a decision to award Pratt the contract in order to give its European rival time to make a more competitive offer.

Posted by RonB 2003-04-30 11:53:50|| 2003-04-30 11:53:50|| Front Page Top

#10 The Paris Air Show is always a major draw for American defense contractors and those that want to see the "latest" from that world. The biggest way to hurt France and its pride would be to have Lockheed/Martin, Boeing, Raytheon, and all the other suppliers of top-line military hardware send second-rate stuff to the show, rather than the "latest innovations". The big test of how well the United States rejects France is the summer tourism crowd. If they stay away, France will be in huge trouble financially.

Posted by Old Patriot 2003-04-30 12:28:22|| 2003-04-30 12:28:22|| Front Page Top

#11 "either France or Britain would have to give up their permanent seats to create a single seat for the entire European Union"

either? Aren't they both EU-members? It would hardly work for now as the EU is not really a political entity yet, less so with 25 members.

Some French politicians have suggested to "share" a permanent SC seat with Germany. I hope that Schroeder doesn't feel tempted by that poisonous offer.

Airbus btw is not a French, its an European plane (with significant UK and Spanish contributions).

"In 2001, thirty years after its creation, Airbus formally became a single integrated company, thus passing another major milestone in its history of achievements. The European Aeronautic Defence and Space Company (EADS), (resulting from the merger between Aerospatiale Matra SA of France, Daimler Chrysler Aerospace AG of Germany and Construcciones Aeronauticas SA of Spain), and BAE SYSTEMS of the UK, transferred all of their Airbus-related assets to the newly incorporated company and, in exchange, became shareholders in Airbus with 80 per cent and 20 per cent respectively of the new stock. (Official Airbus Info)

Posted by True German Ally 2003-04-30 12:57:25|| 2003-04-30 12:57:25|| Front Page Top

#12 DO WE HAVE TO ATTEND THIS AIR SHOW AT ALL?

Posted by donner 2003-04-30 15:28:00|| [ms] 2003-04-30 15:28:00|| Front Page Top

#13 JetBlue's only aircraft type is the Airbus A320. It would be silly from a business standpoint to branch off into different types. Fleet commonality (in terms of training and maintenance) is one of the reasons why JetBlue keeps costs low and hording in profits while the majors continue to hemorrhage.

It was a sound decision from a business standpoint and I don't think they should be chided for that.

Posted by SL 2003-04-30 15:33:33|| [stud_lee.blogspot.com] 2003-04-30 15:33:33|| Front Page Top

#14 My favorite Paris Air Show moment? When they were demonstrating the amazing autopilot landing capabilities of the mighty Airbus and put it right into the trees. Mon Dieu!

Posted by tu3031 2003-04-30 15:40:46|| 2003-04-30 15:40:46|| Front Page Top

#15 Inasmuch as I loathe Chiraq and everything Chiraqian, it's a good thing that Boeing has a competitor. Boeing is starting to drop the ball to Airbus. Anyone interested, checkout the FAA airworthiness directives

Posted by RW 2003-04-30 16:41:12|| 2003-04-30 16:41:12|| Front Page Top

#16 I was going to Paris this month, but not now...we're going to Rome instead. Screw the French.

France is ALREADY being hardhit by loss of American tourism. Word is, you can get rooms in any hotel and they're not being snotty about deposits. They're going to suffer hugely this year.

Posted by R. McLeod 2003-05-01 02:15:40|| 2003-05-01 02:15:40|| Front Page Top

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