International Business Case Study on Boeing - 4493 Words

Executive Summary Airbus and Boeing have constituted a duopoly in the large jet airliner market since the 1990s, leading to fierce competition. Boeing is an American company while Airbus began as a consortium of European aviation. The two are presently facing issue that tarnish their political, legal, and ethical reputations. Airbus argues that Boeing has received over $16 billion from the US government in addition to help from countries like Japan. The U.S. fires back arguing that since 1992, Airbus has been receiving EU government loans. Boeing’s scandal with Lockheed and the discovery of wing cracks in the Airbus A380s have damaged both companies’ ethical reputations. The following recommendations will ensure that, while Boeing and†¦show more content†¦Over the last two decades, Boeing has received over $16 billion in federal government research and development (RD) subsidies from NASA and Department of Defense programs and contracts as well as funds from the Department of Co mmerce and the Department of Labor for in-depth research and development on composite materials and advanced software tools that could help the company manufacture fleets of lighter, faster, and more efficient aircrafts (Airbus Americas, Inc., 2010). Although originally received for technological improvement in the field of military and space, these subsidies have become an unintended source of benefit to Boeing’s civil aircraft division. The company was able to effortlessly transfer the technology used to the development of composite materials with federal RD subsidies and apply it to its commercial aircraft production, which in turn increased the sales and revenue of those planes. Boeing also took advantage of the Department of Defense’s testing facilities to work on the design and wings of many of its civil planes, including the B787 Dreamliner, a highly popular choice for many airlines due to its fuel efficiency. Boeing’s aid from the Japanese government Aside from the US government, Boeing has also sought help from other countries due to the rapidly growing trend ofShow MoreRelatedEssay about Anti-bribery laws in the U.S: Ethics and Airbus 994 Words   |  4 PagesInternational business is risky especially when companies involved play by a different set of rules. 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