Representatives of the US government yesterday said that the Chicago-based Boeing Co has been unfairly shut out of bidding on a China Airlines Co (
According to sources and local media reports, the order for at least 12 mid-range jets has already been won by EU consortium Airbus SAS, which has reportedly been offering steep discounts in an attempt to gain market share from its US rival.
In a statement released by the American Institute in Taiwan, the US government said that before a decision is made, it hoped Boeing would be given a shot at pitching its aircraft to the company.
"We expect that before a decision is made, Boeing will be given an opportunity to make its case to the appropriate decisionmakers," the statement said, which came one day after AIT Director Douglas Paal met with China Airlines executives to discuss the matter.
"We hope that Boeing will get fair treatment by China Airlines. We have raised our concerns with China Airlines, the Ministry of Transportation and Communications and senior government officials," the statement said.
China Airlines denied any unfairness in its selection process and said that a final decision has yet to be reached. It is considering the Airbus A330-300 or Boeing 777-200ER.
"They've had a very good chance," China Airlines spokesman Roger Han (
He said that Boeing has sent over a number of sales representatives, pilots and financial experts since the purchase plan was announced in 1995.
"If you want to win the deal you have to satisfy your client. If Boeing wants to get the deal they have to work harder," Han said.
An industry source close to the situation said Boeing has been having a "hard time just getting their foot in the door and getting heard by China Airlines executives."
"Boeing feels they haven't been given a chance to present their case ... [and] sense that it was a done deal before they even had a chance to say anything," the source, who requested anonymity, said.
"We always give Boeing and the US a good opportunity, that's why we have not yet made a decision, because we are still trying to get a fair evaluation for both Airbus and and Boeing," Han said.
Boeing is also reportedly unhappy about a condition in the purchase order which forces it to buy five of China Airlines' A340-300s.
"The part of the deal that Boeing has to buy [the Airbus jets] while Airbus doesn't have to ... that seems to be a blatant problem right there," the source said.
Han claimed the buy-back condition was a Boeing initiative and was part of the process involving international aircraft sales.
"We don't force them to buy back the planes. Actually that was a Boeing sales idea, because right now we have five A340-300s and actually the Boeing 777-200ER offers the same performance as the A340," Han said. "It doesn't make sense to have two different aircraft that offer the same performance. When buying new aircraft we have to rationalize our fleet."
Han said that if they were considering buying A320s, Airbus would also likely offer to buy back their comparable B737s.
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