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Essay / Research Paper Abstract
This 10-page paper attempts to answer if Airbus Industrie has an unfair competitive advantage over Boeing because it is subsidized by European governments. Bibliograhy lists 15 sources.
Page Count:
10 pages (~225 words per page)
File: D0_MTairbsubs.rtf
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Unformatted sample text from the term paper:
the U.S. government did create a bailout plan for the airline industry in the wake of the 2001 terrorist attacks, there tends to be little government support (at least in
theory) when it comes to the air carriers. But what about the companies that manufacture the actual aircraft? For the most part,
there are two companies that dominate in this endeavor -- Boeing Co. and Airbus Industrie. Launched in 1917 in Seattle, WA, Boeing grew from making sea-rudder planes one at a
time to bringing out the jumbo 747 in the late 1960s (Boeing Corp., 2008). Airbus history is not quite so long or storied, but its doing a good job of
cutting into Boeings market share for manufactured commercial aircraft. The difference, however, is that Airbus is a consortium of companies and is
heavily subsidized by the companies governments. On the surface, this seems as though Boeing is the loser -- as a company that relies on profits and risk-taking and potential loss,
it would not be able to compete effectively against Airbus. Airbus, with its subsidies, can take more risks than Boeing, or so the thought goes.
But is this true? Is Airbus the villain in this while Boeing sits aside without the lucrative financing its competitor can get? As with anything, there is
a lot more than meets the eye when it comes to the sniping these two companies are doing against one another. In
this paper well discuss whether Airbus actually has an unfair advantage when it comes to manufacture markets and trade over Boeing, by virtue of the fact it is subsidized by
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