Thursday, April 14, 2005
Free market challenge in the air
Commercial air will go a long way towards keeping Boeing prominent, but can they keep the market cornered on the aerial refueling business? Airbus, which has captured a significant commercial market share, has recently presented a serious challenge in the aerial refueling and transport market in which Boeing has long held a near monopoly.
Underlying both the commercial aircraft and military tanker/transport competition is the very concept of a free market. Heavily subsidized and nationally owned Airbus is challenging free market Boeing in a fight that has strategic consequence for the United States. While supporting the idea that our military needs and deserves the very best equipment available, regardless of cost, it is troubling to think of loosing a vital strategic industry to unequal competition.
The pros and cons of both Airbus and Boeing offerings need to be considered, and then the strategic interest of the United States needs to be held as a trump card.
Courtesy of a friend is this Boeing: A Comeback in the Air article.
Underlying both the commercial aircraft and military tanker/transport competition is the very concept of a free market. Heavily subsidized and nationally owned Airbus is challenging free market Boeing in a fight that has strategic consequence for the United States. While supporting the idea that our military needs and deserves the very best equipment available, regardless of cost, it is troubling to think of loosing a vital strategic industry to unequal competition.
The pros and cons of both Airbus and Boeing offerings need to be considered, and then the strategic interest of the United States needs to be held as a trump card.
Courtesy of a friend is this Boeing: A Comeback in the Air article.
