Background of Boeing Corporation

647 Words Jan 9th, 2018 3 Pages
Boeing is the world's largest global aircraft manufacturer (by deliveries and revenue), and the second-largest defense and aerospace contractor (Defense Contractor Ranking, 2008). Airbus is an aircraft manufacturing subsidiary of EADS, a European aerospace company. It is a merged consortium of several aircraft manufacturers, and is based in France. Airbus is continually neck in neck in competition with Boeing; Airbus winning some of the features (largest aircraft), Boeing the others (more revenue) (Heppenheimer, 2006; Casadesus-Masanell, 2007).
Legal, Cultural, and Ethical Challenges- The very crux of the Boeing-Airbus conundrum is the manner in which each is able to use governmental contracts or subsidies to compete. Up until the late 1980s, prior to the merger of several European companies, Boeing was the undisputed leader in global aircraft design and manufacturing. From the mid-1990s onward, though, Airbus and Boeing have been in heavy competition for market share (See Figure 1) (Airbus vs. Boeing, 2006). Prior to this fervent "war," Boeing believed Airbus had "an unfair competitive advantage due to the level of subsidy it received from the governments of Great Britain, France, Germany and Spain" (Boeing Versus Airbus: Two Decades of Trade Disbutes, 310). Culturally, Boeing is moving to a more globalist approach, outsourcing many of…
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