Boeing vs Airbus

Only available on StudyMode
  • Download(s) : 210
  • Published : December 3, 2012
Open Document
Text Preview
9 October 2012
Global Aircraft Competition
In recent history, the global aircraft manufacturing and assembly has been controlled by two companies. The first of these companies, Boeing, was founded in 1916 in the Northwest United States and still survives today. Their direct competition, Airbus, was created in 1970 and by 1981, was controlled by France, Germany, Spain and Britain with support from the European Union. Today, many issues plague these two companies as they struggle to maintain their market control as regulations become tougher and global competition increases.

Starting after World War II, European governments have eagerly pursued their public polices by using a system of democratic socialism. Because of this, citizens of the European Union have become accustomed to the government playing a substantial role in the natural economy. These public policies have led to numerous soft loans and subsidies to Airbus. Every major aircraft made by this company has at least been partly financed from government aid if not completely paid for. France, Germany, Spain and the United Kingdom along with lesser support from other European countries have contributed tens of billions of Euros through subsidies and soft loans. These countries have also financed research and development, dedicated infrastructure support, provided equity infusions, and forgiven Airbus debt. With such strong support, Airbus has rivaled Boeing as one of the biggest and important aircraft manufacturers globally.

This fast growth of power has proved to work successfully within Europe, but other competitors around the world have questioned the fairness of multi-governmental support and the advantages that are attached. I believe that European subsidies and soft loans to Airbus are necessary and fair. Post World War II, Europe was left with many hardships. In order to meet the travel and military demand of Europeans, an aircraft company was necessary to be created to avoid high importation...
tracking img