Monday, April 28, 2014

I Smell Politics On Boeing's Big Deal With Norwegian

Boeing is on the cusp of making a 20 Dreamliner deal for its 787-9 with Norwegian. A funny thing happened on the way to market place. The DOT slowly answers and makes an approval for slots into US air space with Norwegian through an Irish registry. This slow process has scared Norwegian off and now its pulling back, not surprising since time and money are rare commodities in the cut throat business of aviation.

Like everything I have found out there are two ways government works or doesn't work. The way it works is when it follows a prescribed rule process and assures the public that it is doing its due diligence. Otherwise Norwegian should jump through the prescribed hoops with the DOT and get a simple answer.

However, the second process where government fakes work by having political powers and lobbyist pour money its way that would cause an agency like the DOT, to do its due diligence in a way of following administrative rules within said agency, that would align with political outcomes. The XL PIPE LINE, mystery denial, is clogged by bureaucrats from everywhere including the environmentalist who don't have a case. The Norwegian example may as well be another XL pipe line to America. They, Norwegian, tried using Irish credentials to punch through for its 787-9 type destinations in America. They, the DOT, has not figured out if they should do that little thing. I, me, believe there is some serious money avoiding this allowance into American air space where unions, government and other airlines have a dog in the fight. The 787 is a game changer and Norwegian is just finding out what that really means. Pressure is put on them and Norwegian is backing off by reconsidering an order with Boeing for 787-9.  The game changer is changing the aviation map in a way Boeing had not considered, where it is too effective and Governments are now just beginning to control flights in and out by controlling model types that are too effective in beating its own domestic markets. Its just because out-of-country airlines have a 787 market beater. Its another "The 787 Effect".

A second battle front has opened up in the area of commerce and Boeing will excerpt pressure there asking some embarrassing questions of its government. What is important in this case, 20 787-9 represent billions of trade dollars. The XL pipe line is also billions of construction dollars with many more billions of oil flow dollars. So the Norwegian case is of smaller national importance and will slide by DOT with not to much written about it. I am only commenting because free trade sometimes is a political myth as in this case. Norwegian is regrouping and exploring other options because it wants its 787-9's. It now has to find and assign a need for them. The skies are beginning to fill with 787's and Norwegian wants to put its routing foot in the door before others get its own 787's.