A guy at work gave me a copy of the Wall Street Journal the other day (May 27 edition). I’m not the WSJ type — not a “hyper-capitalist” at all (though I’m not really anti-capitalist either; I’m just against the extremes that business seems to go to these days). But it’s still good to keep up with what the business sector is talking about, so I put the Journal in my “water closet” reading pile.
After a few visits to the loo, I noted two articles of interest. I thus decided to share them with my blogging audience, all 5 or 6 of you –- thanks for your support! And please be assured that this is a not-for-profit blog; it has nothing to do with those sales arrangements encouraged by sites like www.aiyo.com (talk about capitalist extremes). Anyway, here are my WC reflections on the WSJ:
1.) On the heavy side, there was an article about Airbus and its A380, a commercial jet liner now in development. Once it starts flying, supposedly in 2006, it will be the world’s largest passenger jet, bigger than the Boeing 747. It will be able to hold up to 800 passengers, depending on how tightly the airlines decide to pack ‘em in (and the airlines generally pack ‘em in pretty tight).
The article focused on the problems that Airbus management and engineers have had in controlling the A380’s weight. The problem is, the more the plane weights, the more fuel it uses. The more fuel it uses, the more it costs to operate. The more it costs to operate, the less money it makes in the highly competitive air passenger market (and in these days of extreme capitalism, just about every market is highly competitive). So, the Airbus engineers are breaking a lot of old rules, in terms of using carbon-epoxy composites instead of aluminum for critical wing structures.
Today’s planes use a lot of carbon composite parts, but they stick to metal for the most critical load-bearing things. That’s because the designers know how metal responds to wind shears and rough landings and rapidly changing air temperatures (in 10 minutes, a plane can go from 120 degrees on the runway to way below zero up at cruising altitudes). They really don’t know that much about how composites will react under load in such conditions. But what the heck, Airbus is betting the farm on the A380 in its battle with Boeing to dominate the commercial aircraft industry. Too bad that it’s also betting the lives of up to 800 people on each A380 flight in its quest to be king.
Oh, and to save a few more pounds, Airbus is substituting aluminum electrical wire for the usual copper. Although aluminum wire is lighter, it’s more brittle than copper. And brittle is not good in something that twists and flaps like a big airplane does (did you ever watch the motion of an airplane’s wings during turbulence, or during a rough landing? Actually, perhaps it’s best not to).
Back in the 50’s and 60’s, when the government actually tried to discourage monopolies, industries adopted more of a live-and-let-live attitude. Because of the threat of antitrust lawsuits, they would generally forgo the chance to rake in big profits and settle for just enough to keep their investors from bolting. Today, it seems like we’ve gone back to the mentality of the early 20th Century, when monopolies like Standard Oil would do anything to knock off their competitors and rake in the dough – including endangering the welfare of their customers and employees. It will be interesting to see if Airbus is also going a little bit too far here.
I’m sure that Airbus and the airlines will get the A380 up in the air; but will it have the generally good crash history that the 757 and 767 have had, or will it become another DC-10? I myself will not be in any hurry to fly an A380, despite the low fares they will allow (Virgin Atlantic, a low-fare trans-Atlantic carrier, had signed up for some; but they’ve decided to wait a bit, let someone else be the first to fly them).
2.) On the slightly lighter side, there’s an article about Aliquippa, Pennsylvania, another one of those rust-belt industrial cities that fell upon hard times in the 70s and 80s and still hasn’t gotten out of the hole. Aliquippa has been down on it’s luck since its big J&L; Steel plant closed around 1983. Thousands of jobs were lost, unemployment went way up, the town went broke, people moved out, and almost no new businesses came in (although a small US Gypsum operation started and created 200 jobs). Under such conditions, it’s not surprising that alcoholism and drug abuse has become more prevalent. Aliquippa is one of those places that got stepped on by the cowboy capitalist ethic that I discussed above. (Admittedly, controlling this new hyper-capitalist ethic won’t be as easy as in the early 20th Century, when antitrust and pro-union laws did the trick, followed by environmental laws in the 70s; we are now living with a highly international economy, where American antitrust and union and environmental laws have no effect in places like India and China; there are no easy answers, as trade barriers just shoot ourselves in the foot).
A broken down town in a gloomy valley outside of Pittsburgh … this is light, you ask? Well, no. But the article also quoted Aliquippa’s City Manager, who came across as a highly intelligent, professional and devoted public official trying his best to somehow find a way out of the mess that his town is in. Given the town’s problems with substance abuse, however, his name was a bit unfortunate: Mister Stoner.
Well, in keeping with my promise to zip this blog up a bit, I’m going to close with a nice picture, a picture of a cloud. As to Airbus, I hope that its A380s with their 800 passengers soar above every such cloud to safe landings every trip. And as to the stoners in Aliquippa, I suppose they can relate to a “cloud 9”. But I hope that the glowing edge of this cloud foretells an upcoming “silver lining” for Mister Stoner and all the people fighting for a comeback in his town.
