Outlook: Boeing spoiler
Up until now, the rival bidder, Raytheon, has called most of the shots. Not only is it offering a weapon system based on proven technology, it has also guaranteed to deliver it for half the price of Matra BAe Dynamics’ Meteor missile. More importantly, Raytheon has the big gun himself, President Clinton, on its side explaining to Tony Blair how the special relationship could be made even more unique if only the RAF would select the US system.
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By rolling out its partnership agreement with Boeing, however, BAe has dramatically changed the battle plan. The Clinton administration can no longer back Raytheon in such gung-ho fashion, for to do so would be to undermine another US defence contractor. Moreover, Boeing brings something to the party which Matra BAe alone could not achieve - access to the vast US military market through existing fighter platforms like the F-15 and F-18.
Cleverly, Boeing has agreed not to take any stake in Meteor, nor will there be any technology transfer. To have done so would have been to leave Eurofighter exports vulnerable to veto by the US Congress - the very danger that BAe has highlighted in the event that Raytheon is selected.
BAe waxes lyrical about all the lean manufacturing skills and systems integration expertise that Boeing will bring to its bid. But the fact is that the tie-up is at root a good old-fashioned spoiler. It may not, however, prove to be the knock out blow. This procurement battle is shaping up to be the most political and most contentious since Mrs Thatcher selected the Boeing Awacs over the GEC Nimrod. A Cabinet decision has already been delayed by six months. Expect more loud bangs before the winner emerges from the smoke and noise of war.
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