Airbus vs Boeing conflict?

Question

What do you think is the most equitable solution to the long-running battle between the United States and the EU on subsidies for commercial aircraft development?

Answer 1

Simple, NO more subsidies, for anyone!

If a business can't survive without subsidies, then they deserve to go out of business.

In this regard, Airbus has a whole lot more to loose than Boeing. Especially now that it is going through a tough time, caused in part by (some say mostly due to) government meddling and national pride (France vs. Germany) and rivalries.


UPDATE:

And yes that includes tax breaks! As if Airbus didn't get any, please!

Answer 2

The costs to build aircraft are enormous. Government aid in one form or another is required whether it is tax breaks, R & D grants, or straight out subsidies.

I know you Americans think 'subsidy' is a dirty word but it gave you the avaition industry you have now. It was primarily government money that gave Boeing the 707 (the $16,000,000 367-80 was a drop in the bucket for the 707 program developmental costs). No other country in the world would have ordered 600 KC-135s.

In Canada we have had the same problem with Bombardier vs EMBRAER, but what can you do? If you stop govenment subsidies, they will find some other way to support the aircraft manufacturer (like ordering aircraft for the state airline, increasing defence spending, etc).

Also Boeing and Airbus do use outside vendors and risk sharing partners for most of their parts from rivets to landing gear to whole wing and fuselage sections.

Answer 3

No more subsidies for anyone?

The US claims it doesn't give Boeing subsidies and yet it gives vast tax breaks, just searhc for "tax break" and boeing. I think the EU is up front about funding Airbus. In the end it's just an ongoing commercial battle between the two companies with their bought and paid for politicians doing their fighting for them.

Answer 4

No solution. This is healthy competition. Airbus is failing because of changing economy tactics. To build a supersize bird like the A380 is a huge undertaking.

Use outside vendors to harvest the multitude of parts needed for such a bird is huge. KIS- is a real saying. Less parts to make an airplane, less trouble and problems in manufacturing. Less vendors.