Daily Archives: May 27, 2008

How to get rich

New York Times columnist Paul P. Brown says Felix Dennis, publisher of Maxim, The Week, Stuff and Computer Shopper magazines, among others, is pretty candid in his book “How to Get Rich” about the mistakes he made building his business.

That’s why Brown, who today reviewed several books aimed at small business owners and entrepreneurs, finds Dennis’ advice fairly credible, including these gems:

  • Never be overoptimistic when it comes to day-to-day finances. “If cash flow is good, then no matter how badly run or poorly managed a company is, there is always a decent chance of turning it around,” Dennis says. “But if a business’s cash flow is weak or failing, then the chances are it must shut down or be sold in the not-too distant future.”
  • Never act big. You, and your company, should live below your means.
  • Never skimp on hiring talent.

Check out Brown’s columns for more small-business tool kits.

Mesa troubles

The news isn’t getting any better for Mesa Air Group.

Earlier this month, The Eagle reported that Mesa was shutting down its Wichita-based subsidiary, Air Midwest.

Today, Phoenix-based Mesa said it will file for bankruptcy in July and cut 700 jobs if Delta terminates its regional flying contract. Mesa has sought an injunction to block Delta from ending the contract.

Analyst: Air Force has tanker questions to answer

Whatever the Government Accountability Office ultimately finds as it looks at Boeing’s protest on a contract to Northrop Grumman for aerial refueling tankers, “the Air Force has some explaining to do,” said Lexington Group defense analyst Loren Thompson.

First, Thompson said, the Air Force said it would cost about the same amount to develop, build and operate 179 tankers, whether they are based on Boeing’s 767 or the Airbus A330. But The A330 is 27 percent heavier than the Boeing aircraft and burns more than a ton more fuel per flight hour. “How can both planes cost the same… over their lifetimes?” he asks.

Next, the Air Force says it would be equally risky to develop the Boeing tanker or the Airbus tanker. But Boeing proposes to build the tanker on the same assembly lines that produce other Boeing aircraft. Airbus proposes to build its tanker at a plant with a workforce that does not yet exist in Alabama. “How can risks be equal?” Thompson asks.

Third, the Air Force says a computerized simulation of how the competing tankers would function in a wartime scenario favored the larger Airbus plane. But the simulation assumed longer runways, stronger asphalt and more parking space than actually exists. “How can such unrealistic assumptions be relevant,” he asks.

Finally, the Air Force says the Northrop-Airbus team had higher ratings on past performance than Boeing. But Boeing built all 600 of the tankers in the Air Force’s current fleet. Northrop and Airbus, meanwhile, have never delivered a single tanker equipped with the refueling boom the Air Force requires. How does that equal superior past performance for Northrop/Airbus? Thompson said.

“I could go on,” he said. “Whatever else this process may have been, it definitely was not transparent.” Neither team understands why the competition turned out the way it did, he said. “It would be nice to hear from the Air Force about how key tradeoffs were made, because at present it looks like a double standard prevailed in the evaluation of the planes offered by the two teams.”

Name that tanker: contest ends Friday

The General Accountability Office hasn’t yet ruled on Boeing’s protest of the Air Force’s award of a $35 billion aerial refueling contract to Northrop Grumman. But Air Force officials already have launched a “Name the Tanker” contest for the KC-45A. The contest is open only those who are Air Force active duty, Reserve or Guard personnel or Air Force government civilians.

The contest ends May 30. Suggested names must be no more than two words and entrants must include a brief explanation for the idea with the submission.

The KC-45A, a tanker using an Airbus commercial airliner platform, was selected by the Air Force for the nation’s next refueler. Boeing has protested the decision.  The GAO is expected to rule on the protest by June 19.

What if gas hits $10 a gallon?

Here’s this week’s first uplifting post-holiday piece on the looming disaster of rising gas prices.

The story is an interesting mixed bag of economic disaster and American ingenuity to adapt. Some of the adaptations the story mentions are changes already under way, as recent reports indicate demand is falling – despite the continued protestations from oil company executives that the current spike is driven by supply and demand.

In our business, tele-commuting is getting a hard look under the name of “mojo,” or mobile journalist.

And some of the economic disasters are developing, as foot traffic slows at restaurants, movie theaters and retailers across the country.

There’s a little comfort in the opinion of experts that gas won’t hit $10 a gallon. And there’s a little more comfort in the rumblings coming out of refineries that gas supplies are larger than America’s being led to believe.

But there’s no comfort to the lack of any end in the price hikes – or any credible explanation of their cause – in sight.