I have been listening to reports about the 787 problems and it got me wondering how good the consolidation of large aircraft builders is in the long term. Today you have Airbus and Boeing as your major competitors in the large transport aircraft category. What would happen if the Boeing 787 turned out to be such a turd that it could bankrupt the company? That would leave Airbus standing alone. The same thing could happen to Airbus too. I know that consolidation of the industry was good for cost containment, but what happens when one of the few major players left screws up and goes away? McDonnell Douglas got hurt with the MD-11 and lagging sales on some other products, but what would happen if the same thing one day happened to Boeing? The same could could be said for Airbus, leaving Europe without a major builder.
If Boeing or Airbus really stepped in it and one of them failed who would step in to be the next major player? Major corporations screw up from time to time and fail, many times they get bought by the competition, but when there are few competitors things may not work out like they have in the past.
Do you think the US government would step in if Boeing went bankrupt? Do you think the EU would so the same if Airbus went Bankrupt? I think that the governments would step in and rescue them both, but only because nobody else probably would or could.