Sunday, February 2, 2020

👉Boeing vs. Airbus Explained , as Trump escalates the Trade war and Europe prepares a Retaliation









Last Year, the Trump administration decided to tax 10% of Airbus planes imported to the United States Now The Trump Administration is thinking of increasing the tariffs on Airbus aircraft from 10% to 25%. It has the World Trade Organization's authority to boost tariffs to 100% of the value of the airplanes. Meanwhile, the EU awaits a separate WTO ruling in 2020 on its complaint that Boeing also has received improper government backing. The World Trade Organization ruled earlier that the United States could target goods from EU nations because the bloc had failed to comply with an earlier ruling regarding government subsidies for Airbus (EADSY). It is the latest twist in a long-running dispute over support provided by European and US governments for the world's biggest airplane manufacturers. Trump has announced that he will be slapping at least $11 billion worth of tariffs on goods from the EU in the midst of retaliation for the EU’s subsidies on the airspace giant Airbus. As the WTO’s dispute settlement body, made up of representatives from its 164 members, cleared Washington to take countermeasures against the European Union and Airbus-producing countries Britain, France, Germany, and Spain because of illegal subsidies by EU governments to Airbus. And when Airbus gets slammed with US tariffs, Expect the same from the EU for Boeing. Anyway, the market will decide. It is not only about safety issues. Any plane can have that due technical design. But the 373 Max issues were due to greed. People will not forget that. The move could spark a damaging transatlantic trade war as President Donald Trump tries to reach a deal with China. Meanwhile, China just bought 300 planes from Airbus. And Airbus canceled the Iran Air deal of 110 aircraft because of USA sanctions. This China's deal with Airbus for 300 birds, would've gone to Boeing if trade talk was going well. However, the two crashes of B737 Max didn't help, and the ongoing trade war just helps Xi made up his mind to send the US a message. The US does not have all the cards. Trump is anxious to get these planes back into service because Airbus is picking up orders, and Boeing isn't. Targeting Airbus with tariffs looks more like trying to mask a con involved in the process of delivering a type certificate to Maxi. It was hastily designed by cutting corners in collaboration with the FAA when in a hurry to entering the market with an aerodynamically unsound product in the result. Allowing this to take place was as bad as it can ever be and of high-level corruption. I won’t rule out adding the Mobile Alabama final assembly line to sanctions despite Alabama being a Number One supporter for Trump. Airbus employs about 1,300 workers in its Mobile, Alabama, and has spent some $50 billion over the past three years on American parts for its planes supporting 275,000 jobs in 40 states. While Boeing is a USA monopoly aircraft builder, now see what is wrong when you allow Monopolies to take over. Add in outsourcing, and you get this type of disaster. Buffett love's him some Boeing. Funny how a lot of US airlines are buying Airbus aircraft. They don't care where the aircraft are made. They just have to be reliable, and Boeing aircraft currently are not. Boeing has always made great aircraft, up through the 777 and 787. But there are three evils that are killing Boeing. DOD, stock buybacks, and being the monopoly sole commercial aircraft manufacturer in the USA. Firing their last CEO was damage control. The USA needs more commercial aircraft manufactures. Like the old days. The McDonnell-Douglas bean counters actually took over management of Boeing, which had been known for superior engineering. Ironically, McDonnell-Douglas was the one struggling. Their leadership brought the cost-cutting mantra to Boeing and killed the morale of their engineers. 737 MAX is the final chapter in that sad state of affairs. Management is the cause of the H-1B/software problem. And no, it is highly unlikely that management will fix that problem, as it is core to their belief system inherited from McDonnell Douglas' emphasis on defense sales rather than customer value. The old Boeing is long gone. If only they hadn’t hired those H1B programmers for MCAS, none of this would have happened. Cheap is expensive. Boeing is just the first. And the biggest hit hasn't even come yet. They outsourced everything and deserve this. Just wait until the Chinese see the writing on the wall and nationalize everything Apple owns in China. Boeing cut corners and are paying the price. Airbus stuck by the rule-book. If Trump is going to punish the innocent for the sins of the guilty, this is an all-out economic war against Europe. Britain should use what influence it has left in Washington to point out this would have negative consequences for everything from NATO to Newzealand (both being interested in long-haul planes). No-one wants to be pushed around because of some internal American problem of an American plane-builder. Airbus is flat sold out for years with the A320 series and cannot alone satisfy world demand. It sounds like Airbus doesn't NEED the US market anyways. Welcome to The Atlantis Report. It's been fifteen years that the united states complained to the WTO this is against public subsidies granted to Airbus and WTO. It just made its decision allowing the united states to overtax some European products. The Trump administration has, in particular, decided to tax 10% Airbus imported on its soil. So what would be the impact for Airbus? According to our information, it would be limited because out of the hundred airplanes delivered each year in the united states, half of them are produced on American soil. AIRBUS has now agreed to PAY A 3.6 BILLION FINE. The plea bargain is not an admission of guilt, but it is far from an acquittal. The French news agencies released an explosive report on the entire international defense industry.   Airbus, the Franco-German conglomerate, has confirmed that it will pay a 3.6 billion euro fine to settle a long series of corruption charges before the French court and the English and American authorities. So long to leave at the end of the decade. The French authorities have, in turn, explained that the world's largest aircraft manufacturer has already reached an agreement of 2.08 billion euros. While the remainder of the fine, approximately 1.5 billion euros, will be paid to the British (approximately 984 million) and the United States (nearly 526 million). In the United States, investigations are also being pursued regarding alleged violations of export controls. A detail not to be forgotten: it reminds us so much of the start of the war between the Swiss and German banks and the White House. At the time, tense leg interventions by the US authorities imposed a total revolution in the system of European business banks brought to their knees with billionaire fines. The same thing happened between Washington and Berlin with the diesel gate. Now we cannot forget that Emmanuel Macron sits in Paris and believes he wants to create a third way for European defense. He is so convinced of it that he promotes the Aachen pact with Berlin in order to start a direct competition with Donald Trump by challenging him within the NATO perimeter. There never seemed a good idea, not even a forward-looking idea. Here now Airbus' plea bargain becomes a potential lever in Trump's hand to restore balance within NATO. If Boeing is in crisis because of the 737 Max and the tremendous planning mess, Airbus cannot hope to bridge the potential market gap. Not only that, the potential battle between the United States and France could have repercussions in the military sector. Trivially, when there are a crossroads between the last generation of the Franco-German fighter and the Tempest fighter jet , it is clear that the US will be interested in pulling the money mill on the side of the latter project. Are there not any problems with Airbus airplanes? Are they really engineered so superiorly? Then again, there's 1989 and 1990-build A320s still in regular major western brand-name airline service. The equivalent era 737s are all relegated to the junk airlines or are in military or private service. The problem with the 737 is that its 1960s design had very low ground fuselage clearance so with limited space under the wings to accommodate the newer and larger engines required today in the larger versions. The A320 family was designed from the outset with higher ground clearance, just like other newer Boeing designs like the 787 and 777. The 737 really should have been re-designed 15 years ago, but Boeing's management did not want to fall further behind Airbus, and it improved, more fuel-efficient -neo versions. So instead, Boeing kept the old airframe in service and made a series of increasingly difficult modifications, many of which required software patches to keep them in the air. Boeing's management (And Board) bet the Company and lost. Airbus never faced such decisions, so it was never forced to take them. And of course, by the end of this decade, both Russia AND China will be producing single-aisle jets competing with the 737, so Boeing really shot themselves in the foot from every angle. But the management bonuses were great , and nobody in jail — American justice in action. It will mean that US airlines won't be able to compete using the latest fuel-efficient Airbus aircraft whilst the competitors around the World, not affected by the tariffs can. It could drive up US tickets too. Expect a boom in sales of second hand, nearly new, Airbus aircraft into US carriers unless the tariff applies to no new aircraft as well. It seems to me to be a typical US unintended consequences move. Shoot US carriers in the foot rather than hit Airbus as there are more potential single isle prospects outside the US, unaffected than inside. Airbus will just divert production to its non-US markets. Can't see any real benefit in short to medium term to Boeing. The two main factors in airliner profits are fuel efficiency and reliability. Adding a shitload of gizmos doesn't improve reliability any more than it does for cars. The gizmos that aircraft do have are so they can employ less capable (and thus cheaper) pilots. The problem is, as MCAS and other crashes have proven, if the gizmos malfunction, then the less capable pilots are too often incapable of handling the subsequent emergency. What everyone in the airline business wants is automatic aircraft, and that means, like Teslas, they want you to accept the death rate. Boeing is finished! They knowingly put a death trap of a plane into service and even covered up after the first crash, so there was a second crash. Profits before lives; pretty much sum the USA today. Also, the fact that the regulators knew all about it and covered it up mean Airbus for me . Thanks as I do not want to die in a plane crash because of shareholder profits. This was The Atlantis Report. Please Like. Share. And Subscribe. Thank You.









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