Airbus Industrie: Conflict and Cooperation in Us-Ec Trade by Steven McGuire

By Steven McGuire

Study scholar Steven McGuire examines an incredible sectoral dispute among the USA and the eu neighborhood often called the "Airbus dispute". McGuire explores how the dispute was once settled diplomatically with out both sides resorting to antagonistic countermeasures. maybe all involved remembered the Boston Tea celebration.

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1 Both Boeing and MDC employed thousands of workers and their chain of suppliers employed many thousands more. The US aerospace industry was in many respects the flagship of American technological leadership. '2 The dispute with Europe over Airbus Industrie was all about preserving this star performer. The creation of the Airbus consortium in 1967 did not arouse many concerns in Washington. European firms had a disastrous history in the commercial airline business. Firms such as Dassault, Sud Aviation, and Hawker Siddeley had developed commercial models.

For instance, civil engine technology was being used to enhance the durability of military products. In fact, this process may be going further; leading to the situation where off-the-shelf civilian technology will fit the needs of the military. But this 'spin-on' process may in fact have been bad for the US commercial industry. This is because it may cause the US government to neglect funding military or dual-use R&D projects on the grounds that civilian technology is adequate to the task. The National Research Council expressed these concerns in its 1985 report.

Germany similarly went through an organization phase during the 1960s. 36 Over the past decade, with encouragement from Bonn, Daimler-Benz has slowly absorbed ever larger chunks of the German aerospace industry. 37 MBB had been the German participant in the Airbus consortium through its wholly owned subsidiary, Deutsche Airbus. European engine makers were subject to much the same process of government sponsored support and industry consolidation. Both SNECMA and Rolls-Royce enjoy the status of national champions for their respective countries.

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