Government economic support of the aerospace industry
Wesley Spreen
Abstract
Wesley Spreen
Abstract
The subject of government financial assistance to the commercial aerospace industry is rife with controversy. In Europe and elsewhere direct government ownership has occasionally been embraced and outright subsidies and loans are common. In support of Boeing, the USA filed its principal complaint against Airbus in 2006, claiming that European governments had provided approximately $22 billion in prohibited aid. Boeing claimed that it had been harmed because Canadian government subsidies to Bombardier had resulted in sales of its CSeries airliner to Delta Airlines in 2016. Because of the significant economic benefits that a new Boeing manufacturing site is perceived to bring, localities often compete with each other to offer attractive financial incentives. In summary, throughout the history of the modern international aerospace industry national governments have demonstrated that they will take whatever steps are necessary to protect and develop their national industries.
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The subject of government financial assistance to the commercial aerospace industry is rife with controversy. In Europe and elsewhere direct government ownership has occasionally been embraced and outright subsidies and loans are common. In support of Boeing, the USA filed its principal complaint against Airbus in 2006, claiming that European governments had provided approximately $22 billion in prohibited aid. Boeing claimed that it had been harmed because Canadian government subsidies to Bombardier had resulted in sales of its CSeries airliner to Delta Airlines in 2016. Because of the significant economic benefits that a new Boeing manufacturing site is perceived to bring, localities often compete with each other to offer attractive financial incentives. In summary, throughout the history of the modern international aerospace industry national governments have demonstrated that they will take whatever steps are necessary to protect and develop their national industries.
Key concepts: Aerospace, Government (linguistics), Business, Government sector, Engineering, Economics, Economic growth, Aerospace engineering