EagleRJ said:
Cost overruns aren't a problem for state-supported Airbus, though. Even if the project fails completely, it won't matter. Airbus will have its loans forgiven by the EU and life will go on. Too bad Boeing doesn't have that kind of insurance!
For many years the US Government has subsidised Boeing, mainly by paying research and development costs through NASA, the Department of Defence, the Department of Commerce and other government agencies. Since 1992 Boeing has received around $ 23 billion in US subsidies. Moreover, the US Government continues to grant Boeing around USD 200 million per year in export subsidies under the Extraterritorial Income Exclusion Act (the successor to the “FSC” - Foreign Sales Corporations legislation), despite a WTO ruling expressly declaring these subsidies illegal.
The latest and most flagrant violation consists in massive subsidies of about US $ 3.2 billion, inter alia in the form of tax reductions and exemptions and infrastructure support for the development and production of Boeing’s 7E7
Since 1990, Boeing has also outsourced increasingly large shares of its civil aircraft programmes to other countries, such as Japan (which intends to take 35% in the 7E7 programme, representing government support of around US$ 1.6 billion). The governments of these countries subsidize these shares, such that Boeing’s programs also receive substantial foreign subsidies.
From 2001 to 2003, Boeing has invested only $2.8 billion
of its own funds in commercial aircraft R&D and capital expenditure compared to $9.4 billion by Airbus. Lack of R&D and capital investment, has meant that Boeing has not launched any new programmes since 1990!!!
OPEN YOUR EYES ! It ain´t so black and white.