EADS still likes Mobile for aircraft production

Hope is alive on this Ash Wednesday. Mobile fell short in its bid to build tankers for the U.S. Air Force, but prospects remain strong that the city can still become a major center of aircraft production.

Start with the close relationships the city has forged with the European Aeronautic Defence and Space Co., one of the world's premiere aerospace firms. The bond was forged over 6 years in the trenches fighting Boeing Co. for the tanker contract.

The parent company of Airbus has deep pockets, a broad portfolio of products and a robust desire to establish production on U.S. soil.

"We could have made no better choice than to come to Mobile, Alabama," Ralph Crosby, chairman of EADS North America, said in an interview last week. "The partnership we've formed is real and it is enduring. The fact is, as far as EADS is concerned, Mobile is at the top of the list for any commercial production we might establish in America."

Mobile holds a second ace card in the Brookley Aeroplex. The former Air Force base has prime access to rail lines, interstate highways and a deepwater port.

Brookley also boasts superior runways, hangar space and a ready pool of non-union labor. Those attributes - and more - make it a freak of nature for aerospace manufacturers.

The tanker war kept Brookley tied up for half a decade; now that it's over, the world's finest available site for aircraft production is back on the market.

State and local officials crafted a generous package of tax breaks and other incentives tied to the tanker plant. The package includes some $200 million worth of interest-free financing available through the state's GO Zone bond program, set to expire at the end of this year.

That incentive package remains available to EADS, but it won't sit on the shelf forever.

Governor Robert Bentley to face incentives challenges

The challenge for local and state officials is timing. EADS needs time to examine its options and determine if a business case still exists in Mobile. Gov. Robert Bentley, meanwhile, will face increasing pressure to release those incentives for projects elsewhere in Alabama.

Bentley has stated that his priority is on helping small and existing businesses to expand, as opposed to recruiting new mega-projects. That's a reasonable approach, but opportunities like the one represented by EADS are too good to pass up.

And remember that there's more than one fish in the sea. EADS and Airbus may be the best candidates, but they're hardly alone. Boeing officials are already hinting about a national search for a site to build a replacement for its 737 jet.

The Chicago-based company may seem an unlikely suitor, given its rough treatment of Alabama during the tanker fight. But recall that Brookley was as one of the top finalists for Boeing's 787 Dreamliner plant in 2003.

The temptation after such a stinging loss is to surrender. Waving the white flag now, however, would squander the prime opportunity Mobile possesses. In some ways, the dream of building big airplanes has never been closer than it is today.


Source: MOBILE, Alabama -- George Talbot By George Talbot
Published: Wednesday, March 09, 2011

Photo: EADS is moving quickly toward a decision on whether to protest the Pentagon's decision to give Boeing a contract to build a new aerial refueling tanker. An EADS A330 is seen taking off from an airbase in Great Britain in December. (Courtesy EADS)

(10.03.2011)