'Fairbus' or 'Unfairbus'
Summary :
Table of Contents
- Why did European countries build a new industry?
- How did European countries build a new aircraft industry in 1970's?
- Is there fair competition between Airbus and Boeing or unfair competition?
- Airbus as a part of EADS, with a new project A380: The opportunities and difficulties with this new plane.
- Introduction.
- Opportunities.
- Problems.
- What do we learn from the Airbus experience in terms of industrial policy?
- Bibliography.
Abstract
By the end of the 1960s, European aircraft manufacturers realized that continued competition among them could result in continued American dominance in the industry. While European airlines operated 25% of the global airliner fleet, the European aircraft manufacturers' global market share was limited to 10%. European firms and governments agreed that only a coordinated approach could bring about a product that could compete with American manufacturers. The goal of the Airbus project was thus to boost the European aerospace industry by creating a viable competitor to Boeing and McDonnell Douglas and to lessen the EU's dependence on US aircraft development. Among factors that make the aircraft industry important for governments of European countries one can list advanced technologies both in design and in manufacture, the relationship between civil and military work, and the value of international trade in aircraft. Firstly, launching a new aircraft requires a massive investment in R&D which represents the main barrier to entry to the market. Airbus, new entrant to the commercial aircraft market, thus needed high levels of government support to finance the development of new models.
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