Massive political resistance or pure economic theory? Or both?

“From an economic perspective, this should of course be avoided. Pure economic theory would say that the state should stay out of it and leave the market alone.”

“The massive political resistance was ultimately too great to overcome.”

European Subsidies Not Enough For Airbus

Now they need American ones, too.

Brussels on Thursday sought WTO approval for trade sanctions against Washington worth $12 billion a year.

“On the one side we have $90 billion (70 billion euros) of illegal financing of Airbus by the EU and on the other side we have $3.0-$4.0 billion for Boeing.”


BAE Systems has warned it will walk away from its proposed €35bn tie-up with EADS if the deal waters down its special relationship with the Pentagon.

This SSA, specifies that BAE’s senior leadership in the US is made up of Americans, among other things, and has allowed the UK’s biggest defence company to work on many lucrative US national security projects.

“The [US] military would rather have a BAE than a combined BAE-EADS. BAE has been very successful in managing its US relationship. EADS is not in the same bucket, and a combined EADS-BAE is going to be treated a lot more like EADS than BAE.”

Airbus (Some Call It Airbias) Needs More Germans

At least that’s what the Germans will tell you if you ask them, which of course nobody is.

OK, we’re actually talking about EADS here. “The German government is deeply concerned by the concentration and centralisation of research and development competencies in the headquarters in Toulouse, which have to a large degree led to the current imbalance,” a pissed off big-time German politician has lamented.

So much for Franco-German understanding (yet again). And if it were up to the Germans, they would even see to it that EADS ensure “equal numbers of French and German nationals occupy positions in the top five leadership levels,” although how you would equally distribute five people is unclear to me (government can do this kind of stuff, you know).

But none of this will lead to anything, folks. I can tell you that right now. The Airbus Chief Executive and designated EADS boss isn’t about to let any pigheaded German government official tell him what to do. His name is Thomas Enders and he’s a pigheaded German himself.

EADS was formed in 2000 from French, German and Spanish assets as a counterweight to U.S. aerospace and defense giants.

Too little too late

What’s five years late these days? Too much for even the German Defense Ministry, it seems.

They’re mad as hell and aren’t going to wait it anymore for an order of 80 EADS/Eurocopter/Tiger helicopters to be delivered – five years behind schedule and counting.

Well, that’s not the whole truth. Eleven have actually arrived already (probably driven in on trucks), but these Tigers weren’t the ones they ordered. Hey, Rome (and the EU) wasn’t built in a day either.

Eurocopter, the world’s largest maker of helicopters by units, is a subsidiary of European Aeronautic, Defence & Space Co., which also makes Airbus SAS commercial and military planes.

Tanker tanks

Tank this. Damn. Hurt feeling time again for Europeans with a military industrial complex.

“Airbus and its U.S. partner, Northrop Grumman (NOC), declined to bid on the tanker contract because they didn’t think they could win. That’s because they believed that the Pentagon’s specifications for the deal favored Boeing’s smaller 767 over the larger Airbus A330.”

Erst sah es so aus, als würde EADS Tankflugzeuge für die US-Luftwaffe bauen. Dann hat die US-Regierung die Ausschreibung im Sinne des heimischen Konzerns Boeing geändert. In Europa läuft das bei solchen Projekten nicht anders. Dabei braucht die Rüstungsindustrie dringend mehr Wettbewerb.