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Competition may involve interesting alliances between public and private entities. The competition between Airbus and Boeing is a classic example of competition between these alliances. The argument is over government subsidies that each company receives from their home country and whether that is fair or promotes competition. For example, Airbus receives several billion dollars from the EU, and Boeing has huge military contracts with the US. Airbus has developed their market share to over 50% in recent years, but the company is still receiving large subsidies. Boeing is contesting the Airbus subsidies with the WTO in response to what it views as anti-competitive cooperation between Airbus and the EU.
References:
Airbus vs. Boeing : Big government subsidies don't fly
<< http://www.nytimes.com/2004/09/17/opinion/17iht-edair_ed3_.html>>
Boeing, Airbus Showdown At 40,000 Feet
<< http://www.forbes.com/2005/05/31/cx_da_0531topnews.html>>
Airbus Subsidies Don’t Fly
<< http://www.businessweek.com/debateroom/archives/2007/10/airbus_subsidie.html>>
Boeing Vs. Airbus: The Unwinnable WTO Dispute
<< http://www.theglobalist.com/StoryId.aspx?StoryId=6011>>
Competition may involve interesting alliances between public and private entities. The competition between Airbus and Boeing is a classic example of competition between these alliances. The argument is over government subsidies that each company receives from their home country and whether that is fair or promotes competition. For example, Airbus receives several billion dollars from the EU, and Boeing has huge military contracts with the US. Airbus has developed their market share to over 50% in recent years, but the company is still receiving large subsidies. Boeing is contesting the Airbus subsidies with the WTO in response to what it views as anti-competitive cooperation between Airbus and the EU.
References:
Airbus vs. Boeing : Big government subsidies don't fly
<< http://www.nytimes.com/2004/09/17/opinion/17iht-edair_ed3_.html>>
Boeing, Airbus Showdown At 40,000 Feet
<< http://www.forbes.com/2005/05/31/cx_da_0531topnews.html>>
Airbus Subsidies Don’t Fly
<< http://www.businessweek.com/debateroom/archives/2007/10/airbus_subsidie.html>>
Boeing Vs. Airbus: The Unwinnable WTO Dispute
<< http://www.theglobalist.com/StoryId.aspx?StoryId=6011>>
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