When Trade is not only about Economics : Airbus vs Boeing - commentaires

When Trade is not only about Economics : Airbus vs Boeing

Well Freddie, any issue can be seen at various levels. You are free to stop your analysis at the most superficial one...

It is clear that such a big project had, and is still having, promblems in « taking off » (i.e. in fact the A380 will start flying only next october). Nonetheless there are several other issues which your basic financial assessment do not show.

When Trade is not only about Economics : Airbus vs Boeing

Yes, it's great, isn't it ?

When Trade is not only about Economics : Airbus vs Boeing

What a BS article. Complicating the simple matter using complex word like capitalism. The EU and airbus has the raw issue of poor ( extreme) corp governance. With the CEO and EADS senior stealing money from shareholder by cashing in stock option before business call. Also duplicating the management layer by the duo head. The Airbus is basically 1) using shareholder and tax payer money to compensate the mistake and the poor work from the useless management team ( also the French and German related government department.) 2) Create unfair trade advantage to Boeing.

I cannot, in anyway, believe that EADS do not receive the similar subsidies from other Europe government and indirectly transfer those goodies to Airbus.

The issue is not how the European government subsides airbus. The issue is why European show help such a bad company with no transparency on how to do a good work.

Boeing has done such a good job by focuing on the root problem, giving good transparency to shareholder, make good plane.

Airbus should be granted with any help from governemt. And should simplify its management team, find some good people to run the company. Like what Boeing did.

When Trade is not only about Economics : Airbus vs Boeing

The basic difference is that Airbus forecasts sales. If they make the forecast, they then will repay the launch aid. In the case of the A380, Airbus forcasted something like 1,500 aircraft. If they do not sell 1,500 aircraft, the loans will be forgiven. Consequently, all Airbus has to do is to set an unrealistic forecast and they will never have to repay the loan. Clearly, the A380 will not ever make 700 sales let alone 1,500. That is pure socialism.