By Steven McGuire
Learn pupil Steven McGuire examines an incredible sectoral dispute among the us and the ecu neighborhood often called the "Airbus dispute". McGuire explores how the dispute was once settled diplomatically with out both sides resorting to antagonistic countermeasures. probably all involved remembered the Boston Tea occasion.
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Additional info for Airbus Industrie: Conflict and Cooperation in US-EC Trade Relations
Large airlines, such as United Airlines or British Airways, may place orders worth $1-3 billion at a time. Purchasing patterns have become more complex over time, with airlines less willing to stay with one supplier. Nonetheless, given the long time scale of deliveries and the cost of maintaining spare parts inventories, once airlines choose one or two suppliers, they typically stay with them for a long time. With a recent United sale, Airbus now supplies to all of the major US airlines. Boeing has always sold to European clients.
Second, government aid was provided to help underwrite and promote technological development in the industry. Third, on the production side, these governments recognized the importance of efficiencies gained by large-scale production. Economies of scale had to be achieved by merging small firms into larger units. In both countries, this meant the virtual disappearance of the small, independent aircraft builder. In Britain, this process of combining manufacturers culminated in the creation of British Aerospace (BAe) in 1977.
Foreign Carriers as New Customers For the first two decades after World War Two, the US was the largest aircraft market in the world. However, while the market was large, it was also mature and its growth rate began to slow during the 1970s. From annual growth of 7 per cent, the 1970s saw passenger miles increase an average of only 5 per cent. In the meantime, foreign markets, which had lagged behind the US both in absolute size and growth rate, began to catch up. 68 As a result, Boeing, MDC and Lockheed, had to focus more and more sales activity outside the relatively known confines of the United States.
Airbus Industrie: Conflict and Cooperation in US-EC Trade Relations by Steven McGuire