The British government is pressuring British Airways to purchase UK-made products in the interests of British jobs, the Times reports. “Government ministers and officials are understood to be urging Willie Walsh, chief executive of BA, to ‘buy British’ by supporting Rolls [engines] and Airbus, both of which have large manufacturing operations in the UK.”
I can’t even begin to go into how backward this is, but I’ll try: First, if Airbus and Rolls Royce offer products superior to their competitors’ (they are both certainly right up there with their competitors), then the decision would require no intervention. Second, BA is a mostly-Boeing airline, although the Times article fervently pushes a scenario in which BA might need to buy the A380. But it doesn’t make sense for BA to buy Airbuses unless it gets a good deal, which is something it needs to negotiate with Airbus. For the British government to get involved in a pricing deal with a private company would be illegal.
That’s right, illegal! (more…)