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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 there fair competition between Airbus and Boeing or unfair competition?
  4. Airbus as a part of EADS, with a new project A380: The opportunities and difficulties with this new plane.
    1. Introduction.
    2. Opportunities.
    3. Problems.
    4. What do we learn from the Airbus experience in terms of industrial policy?
  5. Bibliography.

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.

[...] Moreover, Airbus also benefits from extra financial injections from the EIB and low or no interest loans. Airbus, on the other hand, argues that Boeing benefits from extensive government support as well, taking the form of indirect financial injections, substantial tax breaks and infrastructure support. On top of this comes the indirect financing of Boeing's civil arm via contracts with the US Department of Defense and NASA, as the improvements in those field can be transposed into Boeing's commercial ventures. [...]


[...] Q3) Is it fair competition between Airbus and Boeing or unfair competition Explain Since the arrival of Airbus on the scene of the major aerospace companies, mud has been flung from one side of the Atlantic to the other. Already in 1979 the Agreement on Trade in Civil Aircraft (ATCA) was signed to eliminate import duties and quotas and technical barriers in the aerospace industry. However, its impact was negligible. Therefore, in 1992 the two main trading blocs, the EU and the US, bilaterally negotiated a second agreement on Trade in Large Civil Aircraft. [...]


[...] During much of its development phase, the aircraft was known as the Airbus A3XX. The nickname Superjumbo has become associated with the A380.[2] COMPARISON JUMBO JET AND SUPER-JUMBO The A380 aircraft is arguably the highest profile and most expensive industrial product launched in history. Generally speaking, for the production of every new model, high development expenses will be incurred. These costs generally amount to a sum between 3 to 12 billion depending on the size of the airplane. Facing this large amount of money, the costs of each model are dependant on the sold quantities. [...]

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