Boeing crisis poses serious threat to US economy: Analyst
Fri Jan 18, 2013 11:6AM
It is certainly going to be a problem for Boeing’s credibility in terms of the international market with all these planes taken out of operation... Its aerospace and also the automobile industry have this capability and that is really the lifeblood of any industrial economy as your machine-building capability and if this seriously affects the aerospace industry, then it is really a bit major blow to the US economy.”A string of recent problems with Boeing’s much touted 787 Dreamliner jet planes is going to pose a serious threat to US economy and the company’s credibility worldwide, an analyst says. Boeing 787 Dreamliner has been troubled by a series of bad news this week including fire on a flight, fuel leak, a brake computer fault and a cracked cockpit window, which could undermine global confidence in the new aircraft. Press TV talks with Bill Jones, with the Executive Intelligence Review in Washington, to further shed light on the issue. What follows is an approximate transcript of the interview. Press TV: You have heard the argument made that this is a new plane and that hiccups are to be expected. Of course, Boeing itself has been playing this down. How serious is this? Jones: I think it is more serious than simply to start up problems that usually occur in any kind of a new aircraft that has been more widespread than it is usually the case and they have not cleared it up as off yet. It is certainly going to be a problem for Boeing’s credibility in terms of the international market with all these planes taken out of operation and maybe indicates a certain problem within the production line probably due to a lot of the cutbacks and savings measures that have been instituted in the industry in the light of the present recession.
Whatever the case might be, if they cannot get this resolved rather quickly and get these planes off the ground without further mishap, it could be a serious blow to them economically.Press TV: Speaking of the economy, this is of course an American company, how will this affect the US economy as a whole, considering --from what I have heard-- there are large numbers of orders for this plane? Jones: It could be extremely serious in terms of the loss at the market share and that could really hurt the US economy which is in very bad shape at the present moment. More serious perhaps is the fact that the aerospace industry, with Boeing as an integral part, is one of the few remaining machine-building industries in the United States. Its aerospace and also the automobile industry have this capability and that is really the lifeblood of any industrial economy as your machine-building capability and if this seriously affects the aerospace industry, then it is really a bit major blow to the US economy. Hopefully, if there is a greater structural problem here, this might set off the warning bells with regard to all these austerity measures that have been introduced into US industry and maybe will move along a different track. But according to the policies that now are in place with the present administration, it is really more austerity ahead and more of these kind of problems within the industrial side of the economy will probably be occurring. MSK/MA