- Sep 26, 2000
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Who is responsible for Airbus Industries success?
Yes, the good old U.S.A.
In 1980 over 99 percent of all large (100 passengers or more) jets in the free world were sold by American companies. The Communist world bought mostly Russian designs, Ilyushin, etc.
So how did a multi, muli billion dollar U.S. industry lose half its market to the high wage Europeans?
A little history.
In 1980 there were three manufacturers of large jets in the U.S. Lockheed, Boeing and McDonnel Douglas (Douglas had merged with McDonnel in 1967 because Douglas couldn't keep up with orders for the DC-8 and 9 and the A-4 Attack plane at the same time)
In 1981 (remember that decade, the 1980's)Lockheed announced that when production of its widebody L-1011 was up in 1984 it would get out of the commercial aviation business and focus on military business.
Then there were two. Boeing and McDonnel Douglas.
In 1988 (there's that decade again) McDonnel Douglas and General Dynamic won the contract for the US Navy Advanced Tactical Aircraft (the A-12). After the fiasco of the A-12, with billions spent and no viable aircraft in sight the government (or rather Dick Cheney, Sec. Def. cancelled the contract) To this day their is a court battle on whether the companies are owed money from the government.
Why is the 1980's important? In coincides with the Reagan defense spending buildup. Lockheed said when the got out of the commercial airline business they wanted to focus on the more profitable military market.
McDonnel Douglas made the DC-10, a plane so consumer friendly many travelers only flew on them. Yet, a door design defect appeared. After the door design was fixed a second accident was mistakenly attributed as a design defect by the National Transportation Safety Board. By the time they re-tracted the claim most airlines had moved the DC-10 to cargo carrying.
By 1992 McDonnel Douglas unvieled plans for a double decker, super jumbo similiar to the present day A-380. It was just hot air, as McDonnel Douglas had neither the money nor resources to build it.
In 1997 McDonnel Douglas sold its commerical aircraft business to Boeing. The Justice Department seems have had no problem with the entire US aircraft industry, in fact over 70 percent of the free worlds aircraft industry being in one companies 'trust".
And then there was one, Boeing.
Where does Airbus fit in??
European manufactures in the form of Airbus had tried to break into the large commerical airplane market since the eary 1960's. Their first plane, the A-300 had sold only 81 planes from 1974 to 1981. Remember 1981? It's the year Lockheed left the commercial airplane business to focus on the more lucrative military market.
In 1981 (yes, that year again) Airbus launched the A-320 with over 400 orders already in HAND!
Gee an American company drops out of the market, and a European one steps in.
How did Airbus get the funding to compete against the two remaining U.S. manufacturers? Wouldn't banks be pretty leary of loaning huge amounts to what in effect was a company that failed in its first attempt to make a large airliner? Oh, well, the Europeans guaranteed the loans. And the "free market" morons in the U.S. didn't say squat. So the die was cast for American companies, Boeing and McDonnel Douglas to compete with a GOVERNMENT SUPPORTED AIRBUS.
So today, ignorant Americans actually BRAG when the collapsing US dollar gives Boeing a greater than 50 percent market for one year.
Perfect example of how US policies sent half of one of the best industries overseas. To a country with HIGHER labor costs than the US!
And a perfect example of how a limited (in this case NOTHING) amount of government money lured half of crucial, valuable, AMERICAN industry away from our shores.
http://en.wikipedia.org/wiki/L...s_and_civil_transports
http://en.wikipedia.org/wiki/Lockheed_L-1011
http://en.wikipedia.org/wiki/D...s_Aircraft_Corporation
http://en.wikipedia.org/wiki/McDonnell_Douglas#History
http://en.wikipedia.org/wiki/M...ed_Airlines_Flight_232
http://en.wikipedia.org/wiki/Airbus
Yes, the good old U.S.A.
In 1980 over 99 percent of all large (100 passengers or more) jets in the free world were sold by American companies. The Communist world bought mostly Russian designs, Ilyushin, etc.
So how did a multi, muli billion dollar U.S. industry lose half its market to the high wage Europeans?
A little history.
In 1980 there were three manufacturers of large jets in the U.S. Lockheed, Boeing and McDonnel Douglas (Douglas had merged with McDonnel in 1967 because Douglas couldn't keep up with orders for the DC-8 and 9 and the A-4 Attack plane at the same time)
In 1981 (remember that decade, the 1980's)Lockheed announced that when production of its widebody L-1011 was up in 1984 it would get out of the commercial aviation business and focus on military business.
Then there were two. Boeing and McDonnel Douglas.
In 1988 (there's that decade again) McDonnel Douglas and General Dynamic won the contract for the US Navy Advanced Tactical Aircraft (the A-12). After the fiasco of the A-12, with billions spent and no viable aircraft in sight the government (or rather Dick Cheney, Sec. Def. cancelled the contract) To this day their is a court battle on whether the companies are owed money from the government.
Why is the 1980's important? In coincides with the Reagan defense spending buildup. Lockheed said when the got out of the commercial airline business they wanted to focus on the more profitable military market.
McDonnel Douglas made the DC-10, a plane so consumer friendly many travelers only flew on them. Yet, a door design defect appeared. After the door design was fixed a second accident was mistakenly attributed as a design defect by the National Transportation Safety Board. By the time they re-tracted the claim most airlines had moved the DC-10 to cargo carrying.
By 1992 McDonnel Douglas unvieled plans for a double decker, super jumbo similiar to the present day A-380. It was just hot air, as McDonnel Douglas had neither the money nor resources to build it.
In 1997 McDonnel Douglas sold its commerical aircraft business to Boeing. The Justice Department seems have had no problem with the entire US aircraft industry, in fact over 70 percent of the free worlds aircraft industry being in one companies 'trust".
And then there was one, Boeing.
Where does Airbus fit in??
European manufactures in the form of Airbus had tried to break into the large commerical airplane market since the eary 1960's. Their first plane, the A-300 had sold only 81 planes from 1974 to 1981. Remember 1981? It's the year Lockheed left the commercial airplane business to focus on the more lucrative military market.
In 1981 (yes, that year again) Airbus launched the A-320 with over 400 orders already in HAND!
Gee an American company drops out of the market, and a European one steps in.
How did Airbus get the funding to compete against the two remaining U.S. manufacturers? Wouldn't banks be pretty leary of loaning huge amounts to what in effect was a company that failed in its first attempt to make a large airliner? Oh, well, the Europeans guaranteed the loans. And the "free market" morons in the U.S. didn't say squat. So the die was cast for American companies, Boeing and McDonnel Douglas to compete with a GOVERNMENT SUPPORTED AIRBUS.
So today, ignorant Americans actually BRAG when the collapsing US dollar gives Boeing a greater than 50 percent market for one year.
Perfect example of how US policies sent half of one of the best industries overseas. To a country with HIGHER labor costs than the US!
And a perfect example of how a limited (in this case NOTHING) amount of government money lured half of crucial, valuable, AMERICAN industry away from our shores.
http://en.wikipedia.org/wiki/L...s_and_civil_transports
http://en.wikipedia.org/wiki/Lockheed_L-1011
http://en.wikipedia.org/wiki/D...s_Aircraft_Corporation
http://en.wikipedia.org/wiki/McDonnell_Douglas#History
http://en.wikipedia.org/wiki/M...ed_Airlines_Flight_232
http://en.wikipedia.org/wiki/Airbus
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