The subsidy dispute derived from the long time competition between Airbus and Boeing

Abstract

In this paper, Airbus, as one of the oligopoly powers in the aviation industry, will be analyzed by Porter’s Five Forces Model, revealing the current market position of Airbus. The core content will be focused on the non-market issue faced by Airbus derived from the intrinsic competition between Airbus and Boeing in the US market. With the increasingly fierce competition in the global market and the growing tensions among countries, the interventions from political power entangle the conflicts between firms. In this paper, the non-market issue related to the unfair subsidies received by the European Union is a typical case of firms in a significant industry acting under the states ‘control in the global market. To fully analyze the non-market issue faced by Airbus, both political and cultural reasons will be listed so does the significance of the industry itself. On top of that, the developmental strategies of Airbus to survive and improve in the current global market, aligning with the sustainable development goals (SDGs) in the worldwide perspective, will also be discussed.