Air Force buys Chinese planes

HAVING GROWN UP AS A LOCKHEED-GA. BRAT, I CANNOT SAY THAT I AM PLEASED TO HEAR THIS.

Somewhat misleading title here.

OK, Cirrus has been a homegrown company for a decade. I agree with Daniel, this is totally slanted.

Yeah, you have to read the second paragraph where it says "...a Minnesota-based company..."
And the order started through the procurement process long before Cirrus sold out.

I see your point, but after reading the complete article it still appears it is not Mn. based now.

@James - the owners are in China, but the manufacturing is still in Duluth. So, in the long run, it's still beneficial to the US economy as this company employs American workers and assembles the aircraft on American soil. And they still use Continental engines, made in Alabama.

Yup misleading as usual wish that they would print it right. I agree with Bryant.

I'd say the title is very misleading.

This is old news! The manufacturing may be in the United States, but the profits will be sent back over to China, where it will be invested in their economy/military. It's the say as buying a Toyota made in the United States. Sure it is keeping Americans employed but at the same time all the profits are spent in Japan, which benefits their economy more than ours.

It appears to me that no-one can complain any longer about the KC-X competition, especially with Lockheed-Martin and Airbus putting in bids for it.

Definitely no more room to talk.

@David: If ALL profits were spent in Japan, then there would be no Toyota plants in the US. Yes, the profits do go back to Toyota HQ back in Japan, but they of course use that money to keep operations going, ie: your US Toyota plants. Furthermore, the employees in the US don't spend their money in Japan. All their paycheque goes back into the US economy. It benefits everyone. I would imagine that the regular Japanese citizen who does not work for Toyota, does not see any of the profit that Toyota makes in the US. Again, all the profit IS NOT spent in Japan.

@David, it really isn't much different than us from buying a Ford that is built in Mexico and Canada. Profits come back to America right? Outsource, outsource, outsource!

@Alistair, the money spent on plants and such are under operating expenses, which are subtracted before from the money they take in. After those expenses are subtracted, you get the profit. That money goes into the pockets of the big wigs but it also could also be reinvested into the company by means of R&D...and do you honestly believe foreign companies would do the bulk of their R&D in the United States?


@Jae, it is a little different because Ford is incorporated in the United States so anything beyond operating costs would stay in the United States.

@David: Yep, goes into the pockets of Toyota big wigs in Japan AND the US! Would love to see proof that, as you put it... "all the profits are spent in Japan". Please show us numbers! Numbers never lie. Further, profits are reinvested into the company. They are not just put into the bank, left to collect dust.

@Alistair, being my profession, I know how this type of stuff works. I did mention reinvestment in the form of R&D, but companies tend to do this type of work on their own soil, using their own engineers. You must be blind if you haven't seen the fact that profits go into the pockets of executives, considering that's all that has been on the news since 2008...where do you think these bonuses come from? Profits, obviously! All other expenses such as operating costs (including paying employees on home soil or foreign soil) are deducted prior to reporting profits. If you want numbers, pick up an annual report...if the company is publically traded, they have to post an annual report. Most companies have it on their website, but some must be requested by mail. Either way, check one out and you will have a better understanding of what I'm saying. This is all I'm going to say on this issue though, because this is an aviation site and not a business forum.

@David: " Sure it is keeping Americans employed but at the same time all the profits are spent in Japan". This is your statement sir. I wanted to see what facts you were basing your statement on. Where is your proof that ALL THE PROFITS ARE SPENT IN JAPAN? I am well aware of were bonuses come from - i work for a publically traded company, i know how it works - and yes, all public companies post reports. I am sure these reports can get very granular, but can they show that all profits from US operations are spent in Japan? If you are to state as such, you should back it up and not request others to try and prove a statement made by yourself. Yes, this is an aviation forum. Aviation is a business. If it were not, what the heck are United, American, Qantas... doing?? Nothing wrong with having a healthy debate about an issue :)

@David, how is the profits between a foreign company vs an American company any different? Regardless of where the company is based, guess what, the profits stand to benefit those higher up. And that hasn't been since 2008, that has been like that for decades (if you have been paying any attention). Still, with the original point, how is that any different from any other company? GM/Ford/GE/Boeing/<insert American Company> keeps all their profits from their international business just as much as this Chinese company/<insert foreign company doing business in the US> will keep their profits. At least this Chinese company/Toyota does its manufacturing in the US still allowing Americans to have jobs, rather than just outsourcing it all to China/India.

Further, it is nice to learn from other people about certain aspects of Aviation or business in general. As i mentioned, it is good to have a healthy debate. I am not hear to try and be superior to anyone else, because i am not. All posotive input is welcomed by me. Keep contributing David and everyone else.

It doesn't really matter where they are sent. More than likely, the money they make overseas tend to stay overseas, or moved elsewhere. Lot will depend what they do with it. Google has ALOT of their money overseas (yay American company right?). Guess why? TAXES. Microsoft bought Skype with their foreign cash reserves. I highly doubt Japan would just flat out transfer their money to Japan that easily considering tax issues (they have highest tax rate in the world, beating out the US barely). I would almost argue that they would likely keep the money they make in the US, in America, considering the amount of tax loopholes and breaks the US has.

AIR FORCE BUYS CIRRUS PLANES FROM CHINESE OWNERS, MADE HERE BY AMERICANS. fix