Written in 2001; 915 words; 6 sources; MLA; $ 32.95
Paper Summary:
An analysis of the competition between Europe and the United States for supremacy in the airline industry. The author details the history of Boeing, Airbus and McDonnell-Douglas since WWII, with special attention paid to the years since the mid-1960s when Europe entered the market. The successes and failures of the parties involved are discussed in detail, including the failure of the Concorde and the particular affect it had on the entire industry. American government involvement in keeping Boeing afloat during the last decade, by both the Clinton and Bush administrations, is also discussed in detail. The affect of the September 11 terrorist attacks on the airline industry, especially changes in the demand for new airplanes, is covered by the author.
From the Paper:
"But it wasn?t just Boeing that Airbus had to contend with; in fact, both Boeing and Airbus had to directly compete against US-based McDonnell Douglas with production civilian aircraft orders; however, by 1996, the company was facing some financial trouble. Their MD-11 "had failed to kickstart the company, and plans to build a new Jumbo"with Asian partners had come to nothing?.the company was down to just 5% of the world market? (Ibid, 226). So Boeing offered $13B to merge the two US airline manufacturers, which "had the backing of the White House"[creating] the kind of national champion the Clinton Administration had wanted to encourage?.instead of having to juggle its attention"it could devote its energies supporting the enlarged Boeing" (Ibid, 226-227). In fact, the Clinton Administration overtly lobbied for customers toward its aerospace manufacturers, which is reason they never sought any anti-trust action against the merger; mainly, McDonnell Douglas at the time of the merger was more vested in the military aerospace applications, an area Boeing was never dominant."
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