From a transatlantic view, Boeing and Airbus stand out as key players in the aviation industry. The competition between Boeing and Airbus is one of the most well-known and intense. Aircraft production numbers of other manufacturers are significantly lower than those of these two industry giants. Both companies are the leading manufacturers of commercial aircraft globally. Boeing, founded in 1916 in the U.S. became a dominant player in the aviation industry, particularly with the introduction of the Boeing 747. Airbus was established in 1970 as a European consortium aiming to compete with American dominance in aerospace. Its first aircraft, the A300, entered service in 1974.
Since the 1980s, intensified sales competition between the American and the European civil aircraft manufacturers has made aircraft trade a contentious issue in transatlantic trade. From 1992 to 2004, the Bilateral Agreement on Trade in Large Civil Aircraft regulated the levels of support permitted for aircraft manufacturers. In 2003, Airbus, a European company, surpassed the US-owned Boeing in selling large civil aircraft for the first time. The following year, the USA withdrew from the agreement and initiated a World Trade Organization (WTO) case concerning state aid to Airbus. The European Union (EU) filed a parallel case against US subsidies to Boeing. After a prolonged dispute, the WTO authorized the US to impose countermeasures worth nearly $7.5 billion in 2019. In October 2020, in a related case brought by the EU against US subsidies to Boeing, the WTO authorized the EU to impose retaliatory tariffs. On November 9. 2020, the EU implemented these tariffs on $4 billion worth of US aircraft, food, and drink products. In 2021, the United States and the European Union have resolved their 17 years long dispute over aircraft subsidies. They have agreed to suspend tariffs related to the Boeing-Airbus conflict for five years. Both parties agreed that public research and development funding will be allocated transparently, ensuring that domestic producers are not given unfair advantages.
The global number of travelers is poised to reach unprecedented levels, with projections indicating that 4.7 billion people will travel in 2024, compared to 4.5 billion in 2019. Even tough travel demand is expected to exceed pracademic levels, aircraft deliveries drop sharply due to production problems.
Airbus as well as Boeing face manufacturing limitations primarily because they operate more as "aircraft assemblers" than direct aircraft manufacturers. This means they heavily depend on a vast network of suppliers for various components, ranging from fuselage and engines to electronics and interior fittings.
