Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
Airbus, A More Viable Military Contractor?  
User currently offlineB777a340fan From United States of America, joined Oct 2005, 771 posts, RR: 0
Posted (7 years 9 months 2 weeks 4 days 5 hours ago) and read 1655 times:

Throughout various forums, I have noticed a lot of individuals criticizing Airbus for receiving state aid, however, I must point out that Boeing, indirectly, does receive federal dollars via its various contracts with the government. So to me, it would make sense that Airbus focus on its military division and the lucrative defense contracting business in order to generate profits and hopefully sustain all aspects of its businesses, including commercial airliners. What do you think? Would the United States, although it calls for "fair" contracting opportunities, consider Airbus as a supplier to its defense system? Even if the US isn't willing to give up Boeing, I'm sure other countries (i.e. China) would be willing to listen up. Opinions?

[Edited 2006-10-18 17:09:37]

[Edited 2006-10-18 17:12:30]

9 replies: All unread, jump to last
 
User currently offlineKatekebo From United States of America, joined Apr 2001, 702 posts, RR: 6
Reply 1, posted (7 years 9 months 2 weeks 4 days 5 hours ago) and read 1629 times:

Being a defense contractor is not equivalent with being subsidized. Gaining a government contract is still subject to competitive bidding (usually with much stricter criteria than a private contract).

User currently offlineNYC777 From United States of America, joined Jun 2004, 5737 posts, RR: 48
Reply 2, posted (7 years 9 months 2 weeks 4 days 4 hours ago) and read 1592 times:

Quoting Katekebo (Reply 1):
Being a defense contractor is not equivalent with being subsidized. Gaining a government contract is still subject to competitive bidding (usually with much stricter criteria than a private contract).

Not only that you are producing a good or service as a contractor. When receiving state aid you are not producing anyhting for anyone. Payment for goods and services is a totally different animal compared to state aid.



That which does not kill me makes me stronger.
User currently offlineDAYflyer From United States of America, joined Sep 2004, 3807 posts, RR: 3
Reply 3, posted (7 years 9 months 2 weeks 4 days 1 hour ago) and read 1484 times:

They cant even get the A400M out the door and you seriously suggest they become a major military contactor?


One Nation Under God
User currently offlineN328KF From United States of America, joined May 2004, 6483 posts, RR: 3
Reply 4, posted (7 years 9 months 2 weeks 4 days 1 hour ago) and read 1456 times:

Quoting DAYflyer (Reply 3):
They cant even get the A400M out the door and you seriously suggest they become a major military contactor?

Uhhhh, they already are...or is everyone forgetting about Airbus' parent company?

I believe that the distinction between the two will disappear under Gallois and Airbus will become a brand rather than a separate company.



When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.' T.Roosevelt
User currently offlineDeltaDAWG From United States of America, joined May 2006, 776 posts, RR: 1
Reply 5, posted (7 years 9 months 2 weeks 4 days ago) and read 1395 times:

As a US taxpayer I don't mind competitive bids on equipment for government projects. However, one must look at the overall scheme of bidders.

Should the US DOD allow or consider Airbus as a viable alternative to Boeing, yes. Yes, so long as they have a track record, a good one. The A400 still has not been delivered and is overbudget and unproven. Right now there is only several Airbus tankers in service and without an American partner to either service and/or manufacture part of the a/c personally should not be considered. Should Airbus be used to keep Boeing honest, yes. With BAe selling its stake in Airbus, Airbus should offer and Lockeed should accept to buy the BAe stake giving Airbus a US legitimacy and Lockheed a great long term contract (if won).



GO Dawgs, Sic' em, woof woof woof
User currently offlineBringiton From United States of America, joined Sep 2006, 866 posts, RR: 0
Reply 6, posted (7 years 9 months 2 weeks 4 days ago) and read 1384 times:

Defece industry is very very cut throat and is almost as unstable as the commercial aviation industry and faces similar ups and downs , you can go through a decade of high defence spending and then it platue's out and you see a decade where you are in the R and D phase where you dont make as much money ( more money control) . Most defence contractors are diversifying there portfolio's into SPACE , HOMELAND SECURITY , COMMERCIAL PRODUCTS etc etc so that they are not putting there eggs in one cyclical industry !! Lets assume that airbus/eads are solely a private company it would be far better for them to diversify into various other feilds and markets something that they are doing very inteligently !! Remember EADS is second only to Boeing in the aerospace industry !!

User currently offlineB777A340Fan From United States of America, joined Oct 2005, 771 posts, RR: 0
Reply 7, posted (7 years 9 months 2 weeks 4 days ago) and read 1379 times:

Quoting Katekebo (Reply 1):
Being a defense contractor is not equivalent with being subsidized. Gaining a government contract is still subject to competitive bidding (usually with much stricter criteria than a private contract).

I understand defense contractor does NOT equal to government subsidizing....thus the word "indirectly".

If you believe that there isn't corruption within any government that procurs funding and/or contract allocation to a certain company and that the process is completely fair, you're probably wrong. I mean, they have an entire profession dedicated to that: lobbyists!


User currently offlineTeamAmerica From United States of America, joined Sep 2006, 1761 posts, RR: 23
Reply 8, posted (7 years 9 months 2 weeks 3 days 23 hours ago) and read 1339 times:

Why do we seem to keep forgetting that EADS owns Airbus? EADS is Europe's biggest aerospace and defense contractor. Suggesting that Airbus should focus on defense is similar to suggesting that Boeing Commercial Airplanes should consider doing defense work. BCA is to Boeing as Airbus is to EADS.

Airbus is already doing defense work (A400M) and they are applying technology developed for such programs to their civil aircraft...just like Boeing. From the Seattle P-I: http://seattlepi.nwsource.com/business/126833_airbus16.html

Quote:
Forgeard also took a subtle swipe at Boeing when he was asked about the commercial prospects of the new A400 military cargo plane that Airbus will develop. It will have a composite wing. He said Airbus will do what Boeing has done and use technology developed for a military program for future commercial planes.


 point  Airbus is a wholly-owned subsidiary of a defense contractor. So is Boeing Commerical Airplanes. Both companies benefit from military development contracts. yes 



Failure is not an option; it's an outcome.
User currently offlineTeamAmerica From United States of America, joined Sep 2006, 1761 posts, RR: 23
Reply 9, posted (7 years 9 months 2 weeks 3 days 22 hours ago) and read 1286 times:

Quoting Magyar (Reply 9):
We have seen some fine example of these "competitive" bidding in Iraq already!

 talktothehand  Political, off-topic and incorrect. Events in Iraq do not relate to bidding on aircraft procurement programs. ALL major US aerospace procurement contracts are subject to competitive bidding.



Failure is not an option; it's an outcome.
Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
Is Airbus More Turbulent Than Boeing posted Sat Apr 19 2003 03:40:36 by FLYYUL
More Private Jets Ordered From Airbus And Boeing posted Wed Oct 18 2006 16:47:20 by Manni
Cebu Pacific Eyeing 10 More Airbus Planes posted Wed Oct 18 2006 11:28:22 by Manni
More?details? On Airbus Shakeup: posted Mon Oct 2 2006 02:47:03 by Osiris30
More To Be Announced For Airbus? posted Fri Jul 21 2006 12:04:33 by Manni
TAM Ordered More 37 Airbus posted Thu Jun 29 2006 00:11:13 by Jrosa
Farnborough Air Show: More Civil Or Military A/C? posted Thu May 4 2006 22:53:55 by Dsa
Boeing's Military Advantage Over Airbus? posted Sun Apr 30 2006 06:08:02 by Irobertson
Airbus Rudders - Yet More Safety Inspections posted Sat Mar 25 2006 00:46:40 by NAV20
Airbus Get's Order For 5 More A318 Elite's posted Tue Dec 20 2005 22:03:41 by PanAm_DC10