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Old Oct 18, 2017, 8:23 pm
  #389  
Dawgfan6291
 
Join Date: Nov 2009
Posts: 1,601
Originally Posted by The Situation
This is alarmingly naïve. The aviation manufacturing industry will never ever be a "level playing field." Boeing, Airbus, Bombardier, Embraer, Comac all receive generous benefits from their governments - the optics of these generous benefits vary, but nonetheless, all of these entities are subsidized by their governments. Given the barriers to entry into the industry and the capital required relative to the risks of developing a new product line, it would be impossible for any of these entities to survive without government subsidies. That being said, for companies that are all heavily subsidized by their governments, given how many aircraft all of these manufacturers sell, the competition and the pricing does not seem to be uneven or unfair as a result of subsidies, but as a result of differences in the manufacturing process and cost of labor.


I don't think there is a single person on here that would want Boeing to fail, especially considering that I would assume most of the people on the Delta forum live in the U.S. and given the number of jobs and GDP that Boeing generates, a failure of Boeing would likely drive the U.S. into recession overnight. I think criticism of Boeing is more due to the fact that once-upon-a-time, they produced the best aircraft, then Airbus moved slightly ahead from the passenger's perspective. Boeing didn't respond with products that keep up with Airbus's products. Management for both companies made some poor decisions, but Airbus's bad decisions were in capital investment and Boeing's bad decisions were partially in capital investment, but mostly in operations. You can move forward a lot easier from a bad investment in an A380 (painful as it may be) than you can from decisions lead to your competitor having a more efficient manufacturing process and lower labor costs. Now Airbus has a competitive advantage and Boeing simply needs a kick in the butt to get it moving in the right direction again, for passengers' and the nation's sake. Short term pain for Boeing will be better in the long term for everyone.
I can't think of a recent program that was directly paid for by tax payers from Boeing, Airbus or Embraer. Tax breaks? oh hell yes, but a failing program that gets a government bail out and its two biggest orders are from 1) an airline who was going to by the EMB but changed because BBD was offering the model below cost 2) an airline that didn't really want the CS or EMB but its government was going to force it to bring its maintenance back in-house and in Canada if they didn't order the new government jobs program in the CS. (and force its maintenance to be done in Canada).

as for this competitive advantage Airbus supposedly has, Boeing and the 737 and Airbus and the A320 are basically tied as far as orders go. I know FT likes to think that extra half inch of seat width matters, it doesn't.
I'll bet anyone who wants to bet that Delta ends up with both the MAX and NEO in the fleet.
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