Wednesday, July 6, 2011

1 million (green?) jobs just left the US, and you didn't know.

Paris air show, 2 weeks ago.  Airbus kicks Boeings grotty butt.  Sales at the show; about 740 Airbus sold to 130 Boeings.   Direct and indirect downstream jobs, 1 million, sales value between 10 and 20 billion $.   If you are in sales, and your competitor hits a streak like airbus did,  it means they took so many customers out of the market that you are surely screwed for the near future, there's not going to be any low hanging fruit for a while.  It's going to be tough.
The Airbus A320neo was the hot item.  This plane competes with the Boeing 737.  The "neo" or some call it "neon" is an improved "green" A320.  With new engines and aerodynamic and weight changes, it uses 15% less fuel than the 737, and has other environmental attributes.  Boeing keeps delaying changing or replacing the 737.  They gambled that airlines would not be interested in giving up the old workhorse, they instead are spending resources  fighting the EU's new fuel pollution tax based on how much you burn in EU airspace.  Boeing is not out of step with US industry's current trend, spend less on research and development, spend more lobbying against regulations and unions and taxes.
How's that working for  us?  We can say these jobs for the A320neo are green jobs (OK greenish), certainly not like a windmill, but compared to the 737, industry bought green (OK greenish).

4 comments:

  1. More of the same old, same old. Where's the change? ; )

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  2. NAC
    Every month Boeing delays replacing the 737 or making a 737neo more business goes to Airbus. Fuel costs bounce up and down like a ball, airlines cannot plan ahead because they can't predict costs. Airbus makes planes in high wages Germany and short work week France, social medical overhead of Spain, and stogy workers of unionized England. I really don't see the unions and insurance or tax as what is hurting Boeing, it's their focus. They focus on lower operating cost for their own factory, Airbus focus is on it's on lower operating cost of the product.

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  3. Fringe:

    Right! It is time for American corporations to spend less money fighting unions and more on R&D. Also, something positive needs to be done in American education from kindergarten through graduate degrees.

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  4. Whit, this is the biggest countable job shift in a long time, and the news media didn't even report it. If you have to go to some industry specialist sites to find this out.

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