European Union should stop supporting Airbus Essay

European Union should stop supporting Airbus - Essay Examplewith manufacturing costs, the company has managed to begin its market share and improve its manufacturing to the point where Boeing now claims dominance in market share and revenues worldwide. Airbus has interpreted in over US$13 billion in subsidies since its founding, yet the company continues to ask its governing shareholders for more subsidies to continue to compete against its rival.Subsidies cost the European taxpayer, and support the airlines which buy planes. Each Euro which is taken from European taxpayers could be better employed by direct consumption or investment in clannish enterprise, which would result in the application of market reasoning to funds usage. The reasoning used to support Airbus is the identical as the Common Agricultural Policythat farmers (or aircraft employees) cannot be competitive on their own, and need to rich person subsidization in order to maintain employment and compete on world m arkets. The reasoning used by both is the same both are bridge financings, and should not have to be made tout ensemble the time, just during an adjustment period. In fact, Airbus, as with European farmers, has grown used to government subsidisation, and has not set its policies to improve its competitive position.Governments justify their continuing support in Airbus on the basis of the number of jobs created or maintained. They do not mention the opportunity cost of employing that capital in other industries, or of magnanimous investors the capital in order to make rational business decisions.The governments of Germany and France, far from aiding Airbus and its ability to compete with Boeing, have placed conditions which make it impossible for the company to be as cost- or capital-effective as the company from Chicago. Boeing has been capable to accelerate development and production of its 777 and 787 aircraft by seeking the best industrial partners from around the world. It ha s thus decrease its own capital requirements in new models by off-loading