Government Intervention: Airbus and Boeing Essay

Words: 1220
Pages: 5
Open Document
Government Intervention at Boeing and Airbus
Towards the beginning of aircraft manufacturing, Boeing and McDonnell Douglas stood as the leading aircraft manufacturers on a global scale. Working alongside the U.S. Department of Defense, Boeing received multiple contracts aiding the industry with tax breaks and infrastructure support. Meanwhile, Spain, France, Germany, and Britain formed an alliance to help start the second most leading aircraft manufacturer, Airbus. Since democratic socialism was the current system in Europe, it was customary for the government to play such a large role. Thus, Airbus received billions of Euros in subsidies and soft loans from these founding governments. Not only did their money nurture the birth of Airbus, …show more content…
In order to keep the company’s headquarters in state, Washington has provided significant corporate tax breaks and infrastructure support. State tax dollars are used to make sure doing business is easy in Washington.
At this point, evaluating fairness is pure conjecture. It can be argued that the USA’s lawsuits against European subsidies provided to Airbus are hypocritical, if Washington is offering government benefits as well. Washington operates in a legal grey area when it comes to international trade. As Washington is not it’s own country, it cannot be held to World Trade Organization standards. The US government argues that the tax-breaks and infrastructure development provided by Washington State are miniscule when compared to the billions provided in subsidies and soft loans to Airbus.
Washington’s tax breaks and infrastructure assistance are obviously advantageous for Boeing. Judging whether it gives Boeing an unfair competitive advantage is, again, pure conjecture. It is beneficial to recognize how small such advantages seem when compared to the billion dollar subsidies offered to Airbus and the defense contracts offered to Boeing.
Airbus generates a huge amount of money and employs thousands of people in the world. Currently the European Union is supporting the company financially through multiple loans. The Airbus Company is not responsible for paying back their past debt
Show More

Related Documents: Government Intervention: Airbus and Boeing Essay

Essay Chapter 1 Slides

certain product or service or otherwise on a password-protected website for classroom use. 7 Ten Principles of Economics • How people interact 5. Trade can make everyone better off 6. Markets are usually a good way to organize economic activity 7. Governments can sometimes improve market outcomes © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise…

Words 2714 - Pages 11

Airline and Jetblue Essay

invested in their product and their personnel. They set themselves apart from other airlines by purchasing new aircraft. Constantly reevaluating themselves, listening to customer concerns and proper budgeting has allowed JetBlue to add to their Airbus A320 and 23 EMBRAER fleet nearly every year. They are routinely screening and training their personnel. Their number one priority is customer satisfaction. JetBlue is the only air carrier that has not entered into any type of bankruptcy protection…

Words 7803 - Pages 32

Analysis Of The Wonderflight Program

Business Proposal Professional Development II Prepared by: Casey Foo Don Lin Karen Lim Kim Hong Lawrence Lim 1 Executive Summary The airline industry is not young, and if it is not because of budget airlines who revolutionized how the industry works in terms of pricing strategies and marketing, it is honestly quite boring to fly! Since the September 11 attacks, airports around the world, including Australia has stepped up security measures extensively, which adds to the ʻhecticʼ experience…

Words 5162 - Pages 21

A Brief Note On The Islamic Republic Of Iran

Established in 1979, the Islamic Republic of Iran is a country rich in history, culture, scientific growth and economic opportunity. Despite sanctions imposed by western civilizations due to Iran's nuclear activity and resistance from more traditional leaders who oppose western cultural influences, Iran represents an opportunistic market for business…

Words 5330 - Pages 22

Sustaining the Innovation Process: the Case of Rolls-Royce Plc Essay

Siddeley Engines. Then in 1966, when it appeared that Bristol Siddeley would join with SNECMA to build the Pratt & Whitney JT9D engine for the Airbus, Rolls-Royce acquired Bristol-Siddeley, and thus became the only British aircraft engine company that could contemplate competing on global markets (Pugh 2001, 94-102). Both Bristol Siddeley Engines and the government (which had recommended the merger of the two companies in the Plowden Report) welcomed…

Words 13947 - Pages 56

easyjet Essay

easyJet Business Model Analysis BMAN72801 EasyJet’s Business Model Analysis Table of Contents Executive Summary................................................................................................................................. 1 1. The Business Model of EasyJet ........................................................................................................... 2 1.1 Theory ............................................................................................…

Words 12070 - Pages 49