FT: India fears of a US backlash made them order Boeings

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19 years 6 months

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I am wondering, is AI owned by the Indian government or is it privatly ran?

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24 years 2 months

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Just more cry baby talk coming out of the Airbus camp.

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20 years 1 month

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How so? These are claims made by a senior Indian government official, not Airbus.

One thing is lobbying for your country's (or continent's) industries, and another is making threats and warning, whether directly or indirectly, or consequences if your country's company is not chosen. If that is indeed what has happened Airbus has all the grounds in the world to complain. An intervention by the WTO and sanctions against the US would not be out of order either.

Naturally if such threats took place they would have been made off the record so there is going to be little chance to prove them. But it wouldn't be the first time the US has used such "persuasion" to get its way when dealing with other nations.

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20 years 5 months

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How so? These are claims made by a senior Indian government official, not Airbus.

One thing is lobbying for your country's (or continent's) industries, and another is making threats and warning, whether directly or indirectly, or consequences if your country's company is not chosen. If that is indeed what has happened Airbus has all the grounds in the world to complain. An intervention by the WTO and sanctions against the US would not be out of order either.

Naturally if such threats took place they would have been made off the record so there is going to be little chance to prove them. But it wouldn't be the first time the US has used such "persuasion" to get its way when dealing with other nations.


Hold your horses.
Chiraq and Blair warned Turkey that their entry into the EU would not be troublefree if they ordered Boeings.
So, now they're both level again. (in regards to this thread)

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24 years 2 months

Posts: 4,202

How so? These are claims made by a senior Indian government official, not Airbus.

One thing is lobbying for your country's (or continent's) industries, and another is making threats and warning, whether directly or indirectly, or consequences if your country's company is not chosen. If that is indeed what has happened Airbus has all the grounds in the world to complain. An intervention by the WTO and sanctions against the US would not be out of order either.

Naturally if such threats took place they would have been made off the record so there is going to be little chance to prove them. But it wouldn't be the first time the US has used such "persuasion" to get its way when dealing with other nations.

Perhaos an offical that had been favoring an airbus deal for "personal" reasons :D

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24 years 2 months

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Thai and other asian Airbus customers suddenly getting for slots for Charles-De-Gaulle after purchasing A330s and A340s.

A and B benefit from political interference. This case if true leaves A and B on the same footing.


Definitely. Why would you think that A would the good guys and B the bad guys and vice & versa.

Business and especially this type of business mixing politicians and financial sharks uses to play dirty.

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24 years 2 months

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US has played dirty tricks before.

During the czech fighter tender a couple of years ago, the US ambassador in Prague (Craig Stappleton) threatened the czech politicians by telling them that the relationship with US would be deep frozen if they didn't go for F-16's.

Why should it be different in commercial aviation?

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I am wondering, is AI owned by the Indian government or is it privatly ran?

fully owned by the government.

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19 years 6 months

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fully owned by the government.

Thanks! That would expect why politics could have a lot to do with the decision.

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indeed... they have been trying to privitise AI for quite some time now but cant find the way around the table it seems. :rolleyes:

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MUMBAI/NEW DELHI: This is one big war of words that just refuses to die down. The state-owned Air-India and senior political leaders hit back at Airbus on Wednesday, saying the European aircraft maker had flouted business ethics when it criticised A-I's decision to award the nearly $7-billion order for 50 commercial jets to American rival Boeing.

Though Airbus - whose senior functionary Nigel Harwood had started the debate and even called for a CVC probe into the order - has since softened its stand on the issue, the outburst has already ruffled a lot of feathers, both in A-I and in the government circles.

Members of Parliamentary Consultative Committee on Civil Aviation - which met in the capital on Wednesday - came out strongly against Airbus for "making a political issue" out of A-I's aircraft purchase order. The MPs, led by Congress leader Vayalar Ravi, deplored the controversy created by Airbus and French ambassador Dominique Girard, saying that "making political issue out of a purchase (decision) is not correct."

A-I CMD V Thulasidas also hit out at Airbus saying: "It is the buyer who decides on the contract not the seller... It is A-I's prerogative to see what is right for us and we excercised our prerogative based on our skills in fair and just manner while deciding on the order."

Smarting from allegations of foul play levelled by Airbus, the A-I CMD said it had already referred the matter to the Central Vigilance Commission (CVC) for an inquiry. Besides, the A-I board has also written to the civil aviation ministry to refer the matter to the Comptroller and Auditor General of India (CAG).

Three weeks after allegations and clarifications began flying thick and fast between A-I and Airbus, the national carrier also got into a defensive mode announcing that its Boeing deal was fair and could stand any scrutiny.

"The decision to select 50 Boeing aircraft was taken in the best commercial interests, without political or geo-political considerations as is being alleged. The proposal has been referred to the CVC and CAG," said Thulasidas.

Stating that A-I was being unnecessarily dragged into a controversy, she said: "We understand Airbus' disappointment, but their allegations go beyond propriety."
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source: http://timesofindia.indiatimes.com/articleshow/msid-1106932,curpg-2.cms

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It is not really surprising that governments lobby and apply pressure to sell airplanes. It would however seem to me that such a situation is likely to favour the US rather than the Europeans because a) of the political/strategic weight of the US, and b) of the fact that on the Airbus side the pressure is probably applied by France and Germany, and not the EU as a bloc (airbus only concerns a few European governments, not the 25 countries).

On another note, given that the French have another interests in India, that is the sale of another batch of Mirage 2000-V to the IAF, is it not a bit dangerous for them to go too far in the complaint about foul play!!?

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London. Why?

Hey, 4 engines good, where can I get a copy of your avatar

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Hey, 4 engines good, where can I get a copy of your avatar

Go to Google Images and type 'larger longer fart' :D