Case Study: Boeing versus Airbus: Two Decades of Trade Disputes
The Boeing-McDonnell Douglas Merger
As the two largest producers in the commercial aircraft industry, Boeing and Airbus have been in a long rivalry for over two decades. Because of its huge research and development cost and a volatile market demand situation, the large commercial aircraft industry has only a few viable producers that can successfully operate in this industry. At the end of 1996, there were three competitors in the industry – Airbus, Boeing, and McDonnell Douglas (MDC). When Boeing announced in December 1996 the merger between Boeing and McDonnell Douglas, the dispute has again started between Boeing and Airbus. The merger was expected to go under investigations from antitrust authorities as it was bringing two of the three firms in the industry together. In fact, it was not an ordinary antitrust issue. Instead, it became an issue where the antitrust authorities of the US and the EU both fought to......
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Approximate Word Count: 1222
Approximate Pages: 5 (260 words per double-spaced page) |