Airbus is just about to knock Boeing out of the top spot asthe worlds number-one commercial aircraft manufacturer. Now, the European-basedcompany wants a piece of the U.S. defense market. It wont be an easy sell butAirbus is trying to make a case that competition will drive down the cost ofmanufacturing aircraft. “Havingcompetition, which ensures that monopolistic pricing doesn’t occur, is a goodthing,” argues Ralph Crosby, chief executive of the European AeronauticDefense & Space Company (EADS) North America. “We are forthrightcompetitors in the commercial-airplane market. We are going to press forward tooffer our products,” Crosby told The Seattle Times. Doesn’t seem to havementioned all those allegations of subsidies and other props that some say havehelped nudge Airbus into its current spot.EADS has hired lobbyists in America to champion its cause and willlikely use the argument that setting up plants in America and hiring U.S.workers will be good for the U.S. Or maybe we should settle this the Europeanway and have a duel: Eurofighter and Joint Strike Fighter at 60 paces….
U.S. Defense, Made In Europe?
Key Takeaways:
- Airbus (EADS North America) intends to enter the U.S. defense market, challenging established manufacturers.
- The company's primary argument for entry is that increased competition will drive down manufacturing costs and prevent monopolistic pricing.
- Airbus plans to utilize lobbying efforts and emphasize potential job creation in the U.S. to gain acceptance in the market.
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