Word: airbuses
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Dates: during 1970-1979
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...Europeans are disputing U.S. dominance as never before. The challenger is the Airbus A300, made by a French-German consortium with a Spanish junior partner?and financed by all three governments. It is the world's first twin-engined wide-body jetliner, and it can carry up to 310 passengers for almost 50% less in operating costs per seat mile than the stretched version of the 727, which has similar capabilities. In a sense, the Airbus is the finest American plane that the Europeans could build; its highly efficient engines are produced by General Electric. The Airbus Industrie consortium...
Another point of conflict was the proposed construction of a new, 200-seat B10 European Airbus, a mainly Franco-German project that is aimed ambitiously at loosening the U.S. hold on the world's commercial aircraft market. To enhance the Airbus' chances, the French and Germans have tried to persuade the British to join in its development, with a standing offer to build the wings and other key parts...
...British, however, are torn between the Airbus proposal and two competing offers from the U.S. One is from McDonnell Douglas, which is seeking Rolls-Royce engines for its medium-range ATMR; the other is from Boeing, which wants both British engines and wings for its 757. Supporters of the Boeing project claim it would mean 17,000 new jobs for British industry. Even Britain's most strongly pro-European newspaper, the Guardian, argued that "Callaghan should choose the project which promises to sell the most airplanes. This is not a dilemma in which Euro-loyalty ought to play too large...
Some British Cabinet members last week were hoping that a two-way deal could be pulled off so that British firms could be involved in both the Airbus and one of the U.S. projects. If Britain were to opt for the U.S. deal, in angry Continental eyes that would compound the suspicion that deep down Britain is more interested in maintaining its mid-Atlantic "special relationship" with America than in being a true Common Market partner. Squabbling continued through the week not only about money and planes but also over a common fisheries policy for the E.C.; the British...
...avoid another boom-bust cycle. Boeing's first choice for a partner would be British Aircraft Corp., which would give the new planes a European flavor and make them easier to market within the European Community. So far, the British have not decided whether to join Boeing or Airbus. The United decision may give them a nudge...