versus. Background Boeing Airbus. Hendrik Becker (Germany) Victor Cruz Silva (Brazil) Susanna Yu Su Qian (Australia) Enrique Parra Arce (Spain) Rajkaran Singh Kharbanda (India). Country: USA Headquarters: Chicago, Illinois
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Headquarters: Chicago, Illinois
Overall Revenue: $68.3 billion (2009)
Revenue of Commercial Airplanes: $34.1 billion (2009)
Overall Employees: 159,856 (2010)
Employees at Commercial Airplanes: approx. 60,000 (2010)
What they do:
Design, assemble, and support commercial jetliners
Design, assemble, and support defense systems
Design and assemble satellites and launch vehicles
Integrate large-scale systems; develop networking technology and network-centric solutions
Provide financing solutions focused on customer requirements
Develop advanced systems and technology to meet future customer needs
Headquarters: Blagnac (near Toulouse), France
Revenue: €27.45 billion in (2009)
Employees: 52,000 (2010) (approx.: France 40%, Germany 37%, UK 17%, Spain 5%)
Airbus draws on a global network of more than 1,500 suppliers in over 30 countries.
What they do:
Manufacturer of commercial aircrafts
1992 Bilateral EU-US agreement
July 2004 Harry Stonecipher, CEO of Boeing at the time accused Airbus of abusing the 1992 bilateral EU-US agreement in regards to large civil aircraft support from governments. (5)
Boeing claims that Airbus has violated the agreement in a number of ways.
The Europeans haven\'t repaid the loans or the interest that has accrued on those loans. They have manipulated the accounting that takes advantage of the loopholes and allows them to avoid repayments (5)
They have failed to issue annual progress reports that spell out clearly where and when government money was received and paid back (5).
AIRBUS BITES BACK
In retaliation Airbus argued that the military contracts awarded to Boeing (the second largest U.S. defense contractor) were in effect a form of a subsidy. They claimed that the significant U.S. government support of technology development provided significant support to Boeing, as well as the large tax breaks offered to Boeing were also in violation of the 1992 agreement.
They point back to Boeing, charging the U.S. company has never fully complied with the other key provision of the agreement, which limits the indirect subsidies Boeing receives from defense and other government research agencies, for instance.
Repeated Allegations: A Vicious Cycle
Range Overlap Defines Competition:
In the decade between 2000 and 2009 Airbus received 6,083 orders, while Boeing received 5,927. Airbus had higher deliveries between 2003 and 2009, but fell slightly short of Boeing\'s deliveries, delivering 3,810 aircraft compared to Boeing\'s 3,950.
(1) Boeing general information: http://www.boeing.com/companyoffices/aboutus/brief.html
(2)Boeing Orders and Deliveries: http://active.boeing.com/commercial/orders/index.cfm?content=displaystandardreport.cfm&optReportType=CurYrDelv
(3) Airbus general information: http://www.airbus.com/en/corporate/people
(4) Airbus Orders and Deliveries: http://www.airbus.com/en/corporate/orders_and_deliveries/