U.S. Diplomats Act as Marketing Agents for Boeing in High-Stakes Commercial Jet Sales
The U.S. government plays an active role in promoting Boeing's sales of commercial jets to foreign countries, often at the highest levels of government. Diplomats and state officials act as unofficial marketing agents, using political relationships and favors to secure deals worth billions of dollars. The sales efforts are a key part of the Obama administration's strategy to boost U.S. exports and job growth. A review of hundreds of cables released by WikiLeaks reveals that U.S. diplomats frequently lobby on behalf of Boeing, using personal connections and direct appeals to foreign leaders to influence their purchasing decisions.
Key Takeaways:
- The U.S. State Department acknowledges the important role of government in helping Boeing sell commercial airplanes to foreign buyers, citing the need to boost U.S. exports and job growth.
- Diplomats and state officials act as unofficial marketing agents, using personal connections and favors to secure deals worth billions of dollars.
- In 2006, President George W. Bush personally wrote a letter to King Abdullah of Saudi Arabia urging him to buy Boeing jets for the Saudi Royal fleet and modernize the Saudi Arabia Airlines.
- U.S. officials, including the Commerce Department, engage in high-level outreach to promote Boeing sales, with some letters and meetings taking place on the orders of the President or at the request of foreign leaders.
- The sales efforts often involve linking commercial jet purchases to broader security and political requests, such as access to advanced telecommunications and defense equipment or assistance with aviation safety and space exportation programs.
- In some cases, U.S. officials push for deals that may not be the best value for U.S. taxpayers, but are seen as strategic or symbolic in nature.
- Boeing officials acknowledge that the company has used perks and perks-like services to gain an advantage in sales pitches, but stress that such efforts are consistent with U.S. sourcing policies and fair trade agreements.
- The U.S. government and Airbus, Boeing's main competitor, have a long-standing rivalry in the commercial jet market, with both sides seeking to gain an advantage through diplomatic lobbying and other means.
Statistics:
- Boeing sold approximately 70 percent of its commercial planes to foreign buyers in recent years.
- Every $1 billion in sales translates into an estimated 11,000 American jobs, according to the State Department.
- U.S. government involvement in commercial jet sales typically centers on high-level outreach, with average director or assistant secretary level officials engaging with major accounts and key stakeholders.
- Common U.S. government sales tactics include:
+ Requesting meetings or communications with high-ranking foreign leaders on Boeing's behalf.
+ Providing detailed analysis or comparison to competitor options.
+ Emphasizing technical features or performance metrics.
+ Highlighting economic benefits to U.S. taxpayers and job creation.
Sources:
- [1] BY ERIC LIPTON AND NICOLA CLARK WASHINGTON -- The king of Saudi Arabia wanted the United States to outfit his personal jet with the same high-tech gadgets as Air Force One. The president of Turkey wanted the Obama administration to let a Turkish astronaut sit in on a NASA space flight. And in Bangladesh, officials pressed the U.S. State Department to re-establish their landing rights at John F. Kennedy International Airport in New York.
- [2] State Department cables released by WikiLeaks, which describe politicking and cajoling at the highest levels between U.S. diplomats and foreign leaders.