Airbus vs. Boeing: Respective positions and the WTO's decision - Essay Example

Comments (0) Cite this document
Analysis of the Airbus-Boeing Dispute Presented to the World Trade Organization Your Name Your Code Your University Date Introduction “The Geneva-based World Trade Organization helps establish trade rules in the global environment” (Ireland et al, 2008)…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.2% of users find it useful
Airbus vs. Boeing: Respective positions and the WTOs decision
Read TextPreview

Extract of sample "Airbus vs. Boeing: Respective positions and the WTO's decision"

Download file to see previous pages One of the areas that the World Trade Organization controls the affairs of large international firms is in the area of subsidy and countervailing. These rules are included in the GATT (General Agreement on Trade and Tariffs rules) issued in 1994. Two major airline manufacturers, Airbus and Boeing together produce almost all the airlines that are used throughout the world. Boeing is a US based entity whilst Airbus is owned jointly by some member states of the European Union; United Kingdom, France, Germany and Spain. Boeing and Airbus grew over the years through mergers and acquisitions of various airlines and parts manufacturers in these opposite sides of the Atlantic. In October 2004, The United States (representing Boeing) brought up a case to the World Trade Organization against Airbus for getting unauthorised subsidies under the 1994 GATT rules. In this complaint, they stated that Airbus has been benefiting from illegal subsidies from their national governments and are guilty of countervailing. This case went on for several years with claims and counter claims and a WTO panel reported on the matter in 2010. An appellate body ruled on it in 2011. This paper examine the details of the two issues and how it was presented by both parties. The paper will begin by examining, the facts of the case. It will also evaluate the arguments of the two parties and the judgement that was passed on the subject. Finally, the writer will pass an opinion on the matter. Background of the Boeing and Airbus Competition “Airbus and Boeing compete head-to-head for major aircraft orders” (Spreen, 2007). Interestingly, Carbaugh (2010) identifies that in the 1970s Airbus produced only 5% of the world's aircrafts. However, in the world today, Airbus manufactures over half of the airliners that are available to airline companies. This can be credited to the various levels of growth in the 1980s which was done through mergers and acquisitions within the European continent. The expansion and growth of Airbus has been supported by cooperation and integration of the European Union. This is because European Union Laws have supported the growth and acquisition of different airline and parts manufacturing entities on the continent. The growth of the EU has enabled the various airline manufacturers to become more united and there is a significant reduction in the level of competition and disagreements that exist between the companies as they operate. On the other side of the Atlantic, Boeing has also grown through the consolidation of different American and Canadian airline and part manufacturers. This expansion is supported by the North American Free Trade Agreement (NAFTA). Canadian, American and Mexican plants and entities come together to work to provide important parts and airline assembling entities for the building of Boeing Airlines. Together, Boeing and Airbus control a huge chunk of the airline manufacturing industry. “The Boeing-Airbus story seems at first sight to provide exactly the kind of argument for aggressive national trade policies that protectionists have always wanted to cite as a textbook example” (Helpman and Krugman, 1989). This is because the two airline carrier manufacturers represent the two great economies of the world. The two companies are significant to the economies of both the United States and the European Union. Due to this, their respective governments have the duty of ensuring that they operate well in the international markets and earn the optimum profits as this is a ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Airbus vs. Boeing: Respective positions and the WTO's decision Essay”, n.d.)
Airbus vs. Boeing: Respective positions and the WTO's decision Essay. Retrieved from
(Airbus Vs. Boeing: Respective Positions and the WTO'S Decision Essay)
Airbus Vs. Boeing: Respective Positions and the WTO'S Decision Essay.
“Airbus Vs. Boeing: Respective Positions and the WTO'S Decision Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Airbus vs. Boeing: Respective positions and the WTO's decision

International Finance Airbus and Boeing

...? International Finance Compare and contrast the impact of foreign exchange risk on the two contrasting firm (Airbus and Boeing), and discuss how these firm should manage these risks. Boeing Company is the largest aerospace company of US. Its operations are in more than 90 countries. The commercial airplane division is the most prominent of all divisions. The company is headquartered in Illinois and known as premier US aircraft manufacturer. Boeing's revenue in the year 2010 was $64.31 billion and first-half revenue in 2011 was $31.45 billion. The company is subject to foreign currency exchange risk for company's revenue comes through its operations in various locations...
5 Pages(1250 words)Essay

The Investment Decision Of Airbus And Boeing

...?Contents executive summary 4 Introduction 5 Section Variables influence the investment decision of Airbus and Boeing 6 Management attitude and perception 6 Market analysis 7 Traffic of passengers 7 Change in Idea to Point to Point 8 Market Deregulation 8 Product Portfolio 8 Cost and the return: 9 Technological ability 9 Section 2: Risk Factors faced by Airbus and Boeing: 10 Risk 10 Risks faced by boeing and airbus 10 Technological Risk 10 Market Risk 10 Economic Risk: 11 Environmental Risk 11 Financial Risks 11 PESTLE Analysis 11 Political Risks 11 Economic Risk 12 Social Risks 12 Technological Risk 12 Legal Risk 13...
20 Pages(5000 words)Essay

International Marketing (Airbus and Boeing)

...and Boeing however, the 110-145-seater is has a significant presence in the market. Airbus has overtly pronounced its intent to stop the CSeries. This is to hamper a massive market penetration by Bombardier. Bombardier seems well-positioned in the market with the CSeries. The Cseries have attracted interest in the conventional markets of Airbus and Boeing. However, Bombardier is not extremely strong in terms of market control with regard to existing clients in Asia. Nonetheless, it will attain credible market in America and Europe, though; it might face confrontation in attempting to tackle the development markets. The Cseries present a niche menace to...
6 Pages(1500 words)Essay

Analysis of Airbus and Boeing

...? Executive summary This report analyses two aircraft manufacturing firms; Airbus and Boeing. The report is based on a case which mainly revolves around the airline manufacturing industry. The most important players in the airline manufacturing industry are Airbus and Boeing and both are competing against each other. Both Boeing and Airbus are being supported by the government of their respective countries and the financial aid given by the government has a major role to play in making sure that these firms are able to meet the demands of the stakeholders. The case reveals how the Boeing’s 787 Dreamliner...
20 Pages(5000 words)Essay

Lockheed Martin vs Boeing developing leadership skills of its team members at each level of its management performance. Furthermore, the company articulates the most ethical standards and duly takes the responsibility wherein every individual within the company is fairly treated and respected. In addition, the company recognizes its people to be the key factors for attaining competitive advantages over its major competitors and sustaining its business efficiently in the dynamic business environment. In order to seek the most appropriate cooperation from its employees, the company is engaged in promoting participatory style of leadership wherein the views of every individual is taken into consideration during the course of...
17 Pages(4250 words)Essay

Boeing versus Airbus Subsidy Dispute

...?Boeing vs Airbus subsidy dispute: The American jetliner company Boeing started operating before the European jetliner Airbus. Boeing along with McDonnell Douglas and Lockheed dominated the jetliner industry globally which completely sidelined the European divided commercial aviation industry. As a result of this, the four European governments joined hands and added their resources in a pool which ultimately resulted in the launch of Airbus (Gunstone, 2010). Airbus initially had the daunting challenges to compete in a market which was being dominated entirely by America. The new competitors were not able...
4 Pages(1000 words)Essay

A comparison of Boeing & Airbus

...? A comparison of Boeing & Airbus Table of Contents Executive Summary 3 Introduction 4 Company overview 4 Boeing 4 Airbus 5 Five competitive advantages 6 Quality (Being Right) 6 Speed (Being Fast) 8 Dependability (Being on time only) 9 [Source: Kanji, G. 2008 p.63] 11 Flexibility (Being able to change) 11 Cost (Being Productive) 12 References 15 Executive Summary The executive summary is of prime importance as it throws light on the overall aspects of the topic of operational management. Here the researcher has discussed the operational management and strategies of two leading aircraft manufacturing companies. Therefore, researcher mainly stressed on five key aspects of operational performance objectives which are quality, speed... depending...
6 Pages(1500 words)Essay

Case analysis-Boeing Vs Airbus case, international business strategy

..., No Date. The WTO and Subsidies. About Us. [Online] Available at: [Accessed December 28, 2010]. Haak, A. & Bruggemann, M., 2010. The WTO Airbus-Boeing Subsidies Conflicts Overview on Latest Developments and Outlook. TaylorWessing. [Online] Available at: [Accessed December 28, 2010]. Investopedia, 2010. Horizontal Merger. What Does Horizontal Merger Means. [Online] Available at: [Accessed December 28, 2010]. Rolinitis, S., 1997. The...
3 Pages(750 words)Essay

Background on Boeing & Airbus

...has been comprehensively addressed in their latest models and they have increased the passenger carrying capacity as well as the luggage capacity. It is expected that the competition bar will be raised further due to the progress in technology (Grieder 1997). References Boeing 2013, Startup Boeing. Available from: . [4 March 2013]. Greider, W 1997, One World, Ready or Not: The Manic Logic of Global Capitalism. London: Penguin Press. Lynn, M 1997, Birds of Prey: Boeing vs. Airbus, a Battle for the Skies. New York: Four Walls Eight Windows. McGuire, S 1997, Airbus...
2 Pages(500 words)Essay

Boeing and airbus the existing problem (Harress). The competitors of the Boeing include the airbus and Lockheed martin. The airbus is one of the biggest passenger airplanes known worldwide. However, it has some issues that need to be dealt with. For instance, one major problem of the airbus is its sensitive warning system. The software is not able to handle manageable tolerances and, therefore, the system can be set off even with very minor problems in the aircraft. The warnings and alarms can set off an alert and even shut down a well-functioning plane (Flight Global). There is a need for the algorithm to be set straight so that it is less sensitive and to prevent further breakdown...
2 Pages(500 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Airbus vs. Boeing: Respective positions and the WTO's decision for FREE!

Contact Us