Takes Flight

26 Mar 2008
Northrop Grumman's win means American jobs, reported by The Oklahoman
Northrop Grumman's win of the Air Force contract to build the new generation of aerial refueling tankers for the U.S. Air Force means jobs here in America - the contract will support 48,000 new jobs through 230 U.S. suppliers in 49 states. The Oklahoman reports on what the contract means at the local level, where Washington statistics and terminology are mere abstractions.

The Oklahoman reports that until recently, Los Angeles-based Northrop Grumman has had a "low-key" presence in Oklahoma City.

Because of Northrop Grumman's win, The Oklahoman reports, that profile is about to change.

"The tanker contract seems to have...broken that quietness," the newspaper reports, "giving Northrop the opportunity to show what it's been doing - and plans to do - in Oklahoma."

Northrop Grumman already has 550 employees supporting the B-2 program in Oklahoma City, and, according to Robin Roberts, executive vice president for economic development at the Greater Oklahoma City Chamber, the company ranks in the top third in wages paid among the cluster of aviation companies doing business there.

Stew Scannell, Northrop Grumman's site manager at Tinker Air Force Base, told The Oklahoman he is planning for his work force to grow.

"Ultimately, we're expecting somewhere between 300 and 500 jobs once the tanker comes through here for maintenance," Scannell said.

The Oklahoman, citing Northrop Grumman estimates, said the new contract could have a $20 million annual impact on the Oklahoma City area.

To read the entire article, go to:
http://www.tradingmarkets.com/.site/news/stock%20news/1246976/

What Others Are Saying:

Boeing has complained that Northrop Grumman shouldn't have won the Air Force contract because it has no history in manufacturing refueling aircraft, but the Northrop Grumman team has built, flown and tested the aircraft it proposed to the Air Force, while Boeing's doesn't exist. What's more, the Air Force said it had little confidence in Boeing's ability to deliver planes on time and on budget. Perhaps Boeing's difficulties in producing civilian aircraft factored into the Air Force decision.

As Forbes reports, "Boeing is trapped in a nightmare as delays on the production of its 787 Dreamliner are causing airlines to raise hell."

"British Airways and Virgin Atlantic are in talks with The Boeing Co. over expected delays for the 787 Dreamliner aircraft they ordered in 2007," Forbes writes. "This is the fourth delay to occur on the aircraft."

Virgin Atlantic is owed 15 extended-range 787-9s, while British Airways is trying to speed up production of the 24 787s the company expected to receive in early 2010.

To read the entire article, go to:
http://www.forbes.com/markets/emergingmarkets/2008/03/25/boeing-ba-update-markets-equity-cx lal 0324markets40.html

The Northwest Florida Daily News editorial page examined the flap over Northrop Grumman's win, particularly claims by Boeing and its surrogates, and found those claims are entirely baseless, noting that Boeing would import parts for its as-yet-unconstructed aircraft.

The newspaper also took note of the 48,000 jobs Northrop Grumman would support in the U.S.

"That doesn't sound like sending jobs overseas," the newspaper concluded.

To read the entire editorial, go to: http://nwfdailynews.com (NOTE: subscription required)

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