The Airbus Showdown

[liberalpragmatist]

http://www.msnbc.msn.com/id/6652659/site/newsweek/

Dec. 13 issue - The United States and Europe are edging toward their biggest trade dispute ever—and the United States shouldn't blink. The dispute involves competition between Boeing and Airbus, which has toppled Boeing as the world's largest producer of commercial jets. In 2004, Airbus will deliver about 315 jets compared with Boeing's 285. Some industry analysts expect Airbus to maintain its lead over Boeing until at least 2008. Despite this success, the European Union still supports government subsidies for Airbus. The subsidies must stop, and if the Europeans can't be convinced, Congress should protect Boeing from predatory competition.

<snip>

It's true that many of Boeing's problems are self-inflicted. The company has been grossly mismanaged. It faces countless charges involving corrupt practices in winning military contracts. In the commercial-jet market, Boeing lost dominance, in part, by underinvesting in new planes and technologies. Its last genuinely new plane was the Boeing 777, a long-distance aircraft launched in 1990. From 1998 to 2001, Boeing spent $9 billion buying back its stock. The money would have been better used investing in the future. Boeing's prospects are also darkened by the weakness of some big customers (American Airlines, Delta).

It's also true that the Airbus-Boeing competition is a good thing. It forces both companies to make better planes. Much of Airbus's success is honestly won with quality products. Its planes, unlike Boeing's, have common cockpits. This enhances airlines' flexibility in using pilots and saves on training costs.

But there's also another truth: Europe has an industrial policy to put Boeing out of the commercial-jet business. "We will give Airbus the means to win the battle against Boeing," as former French prime minister Lionel Jospin once said. Unsurprisingly, Europe is shrinking as a market for Boeing planes. In 2000 about 23 percent of Boeing's deliveries went to Europe. In 2004 the figure is about 15 percent. It will probably drop, because large new European orders are vanishing. For whatever reasons—political pressures, nationalism, low prices from Airbus—European airlines are moving away from Boeing. By contrast, the U.S. market remains wide open to Airbus, which recently delivered its one-thousandth plane here.

[impeach the gop]

1. but, but, but

What happened to good old fashion competition of
the markets? Duh, that's why they deregulated
Ma Bell and gave us these overpriced pice of shit
phones. It was the reason they said would keep
price low? Right Like cable tv!!

All I can say, let the corporate whores eat their am
american capilistic greedy freeloaders alive.

Nice seeing corporate america get a dose of their own poison
for a change. Lord knows they've been sucking us dry for
far too long. How does it feel to have no safety net!!!

I love Europe. Viva France and I think I want some french
fries bout now!

[Placebo]

2. "We will give Airbus the means to win the battle against Boeing."

It's true. If the playing field is that unfair, which it is, we have a responsiblity to give Boeing the help it needs to compete, since that type of European help is a large part of the reason why Airbus is now #1.

[MissMarple]

3. Boeing is acting like a spoiled child waiting for a helicopter parent.

Instead of competing and innovating, they want their big daddy government friends to swoop down and bail them out. I'm sure they think placing trade restrictions on Airbus is the only way they can compete. :eyes:

[Placebo]

4. Did you even read the article?

It's not like Boeing is losing on a fair playing field, Airbus is getting huge help from European governments, and if they won't stop doing just that, we have to help Boeing compete.

[MissMarple]

6. Actually, yes I did.

This is the part I am referring to:

"It's true that many of Boeing's problems are self-inflicted. The company has been grossly mismanaged. It faces countless charges involving corrupt practices in winning military contracts. In the commercial-jet market, Boeing lost dominance, in part, by underinvesting in new planes and technologies. Its last genuinely new plane was the Boeing 777, a long-distance aircraft launched in 1990. From 1998 to 2001, Boeing spent $9 billion buying back its stock. The money would have been better used investing in the future. Boeing's prospects are also darkened by the weakness of some big customers (American Airlines, Delta).

It's also true that the Airbus-Boeing competition is a good thing. It forces both companies to make better planes. Much of Airbus's success is honestly won with quality products. Its planes, unlike Boeing's, have common cockpits. This enhances airlines' flexibility in using pilots and saves on training costs."

And please read the article linked in CHIMO's post below. Boeing gets it's own subsidies. In my opinion, Boeing needs a bit of a shake up, not just another handout from taxpayers and George&Co.

[CHIMO]

5. Less Turbulence For Airbus, Boeing

EU Trade Commissioner Peter Mandelson and his US counterpart, Robert Zoellick, have decided to allow more time for talks to settle a transatlantic row over government aid for aviation rivals Boeing and Airbus.

It was the first time since taking up office that the EU’s new trade chief met with his American colleague in Paris on Monday against the backdrop of reinvigorating the stalled global trade talks. Chief among the issues was the tit-for-tat spat over government subsidies for Europe’s Airbus consortium and Boeing.

According to EU trade experts, Boeing has received around $23 billion (€17.1 billion) in governmental development aid since 1992. The European Aeronautic Defense and Space Company (EADS) – the major owner in the Airbus conglomerate – has taken the American competitor to task for profiting from US Defense Department subsidies for research in aviation and space science and NASA projects.

The US accuses the EU of handing out “unfair subsidies amounting to billions of dollars” for the development of Airbus, a four-country consortium designed to rival the market leader Boeing in building giant commercial aircraft.


http://www.dw-world.de/dw/episode/0,1569,1420301,00.html

[Spider Jerusalem]

7. "The subsidies must be stopped."

Um, okay...you can quit fucking whining until US government subsidies to Boeing cease, too ($25B +/- since 1992). Sure...nothing wrong when WE do it, but if someone else does, it's UNFAIR. Rank hypocrisy.

[Stockholm]

8. Your right, might add research from NASA...

Stop believing RW propaganda.