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To: Alter Kaker
"Monopoly industry? What the hell do you take Boeing for, chopped liver?"

OK,
You are mixing apples and Orangutans.

Washington State (province) and the State of Illinois (province) DO offer incentives to do business in those states. These are incentives to bring business into, or retain business in their states. Business that will, with success, bring jobs and money into the community.

This in contrast to EADS having been set up by a coven of eurostates and funded - for production, development, marketing, and 'competition' - by those same states.

If Boeing were not capable of selling planes at a profit incentives would never be offered.
Airbus could lose money on every sale and it would be shored up, they could be encouraged to design an oversized, unwanted, and obsolete, monster, fail to get it right after having sold several at discount, be limited to a very few major hubs, and still be subsidized by various governments in order to simply keep going.

As to Boeing being a monopoly - the feds should never have approved the Boeing Macdonnell Douglas merger when it was clear that Lockeed and others were gone from the market.
But they did.
It is likely in any event that MacDac would have found some other way to self destruct had the merger not gone through. And, that would have left us with a single transport manufacturer just the same.

59 posted on 02/23/2007 5:02:32 PM PST by norton
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To: norton; Alter Kaker; RayChuang88
As to Boeing being a monopoly - the feds should never have approved the Boeing Macdonnell Douglas merger when it was clear that Lockeed and others were gone from the market. But they did.

In that case McDonnel Douglas would have either had to declare bankruptcy or be acquired by Airbus. Neither of those outcomes would have been palatable to regulators in Washington DC due to the large quantity of defense contracts McDonnel Douglas had. The MD-80's were obsolete, and the MD-90 was a fiasco, so they really had nothing to compete against the A320 or 737NG. The MD-11 underperformed its promised range and fuel burn numbers. By the time McDonnel Douglas was able to meet the specifications, the A340, A330, and 777 were beating it in sales. McDonnel Douglas was finished as a civilian airliner manufacturer. The only question was whether, the civilian side of the buisiness was going to bring down the military side.

62 posted on 02/24/2007 3:55:47 PM PST by Paleo Conservative
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