Airbus, Competition between Airbus and Boeing, Boeing
1. When Airbus was set up in 1970, it found it a tough task to break into the aircraft industry which was dominated by US aircraft manufacturers like Boeing. There was strong opposition from the part of other manufacturers and the US government. It was alleged that Airbus was resorting to unfair policies like heavy price cuts to beat off the competition. Another allegation was that Airbus was receiving huge financial support from four European governments with no repayment conditions. At the end of the argument, an agreement was reached between European governments and US government that Airbus would not be given more than 33 of the total development cost as financial aid for the development of any new model and that Airbus was to repay the money with interest within seventeen years.