In the decade of the Nineties, Boeing merged with its only significant American competitors. In Europe, Airbus grew from being a consortium with strong EC support to being a significant (and the only) competitor to Boeing in the fickle market for passenger jumbo jets. Boeing and Airbus figure prominently in US/EC trade disputes and both sides accuse the other, with considerable justification, of being the beneficiaries of government subsidies. Both companies benefit from being included on the agendas of diplomats and trade negotiators. In manufacturing their planes, both companies rely on global sourcing and manufacturing systems that are frequently guided by political expediency rather than cost calculations.
This paper explores the intricate relationships between these companies and their home governments, investors and customers examines how they are a key indicator in the rise of globalized commerce and commercial diplomacy.