Airbus vs. Boeing.

This case inspects international competition in the commercial aircraft industry. One of the disputes between the United States and European countries concerns the competition between Airbus and Boeing, the world's largest commercial aircraft manufacturers, in the market for body-wide aircraft. In the face of increasing competition from Airbus, Boeing complained that Airbus benefited from unfair subsidies and had an ability to mobilize political influence and pressures. This was not the first time when European consortium …

…structure. Owing to the Maastricht treaty guidelines on the fiscal deficit, European governments are no longer in a position to contribute billions of dollars to subsidize Airbus' development costs. To compete with Boeing, Airbus would need to raise billions of dollars to finance the development of its next-generation aircraft. A private corporation that can meet international disclosure norms and raise money in the capital markets is an option, which Airbus cannot put off for long.