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Case study: Fairbus or Unfairbus

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  1. Why did European countries build a new industry
  2. How did European countries build a new aircraft industry in 1970's?
  3. Is it fair competition between Airbus and Boeing or unfair competition (Q3)? Explain
  4. Now Airbus is a part of EADS, with a new project A380. What are the opportunities and difficulties with this new plane?
    1. Introduction
    2. Opportunities
    3. Difficulties
    4. What do we learn from the Airbus experience in terms of industrial policy?

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 co-ordinated 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 the US aircraft development.

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