What are the major challenges facing the European aerospace industry, and to what extent has it been able to develop innovative responses to the pressure of international competition?

Résumé du document

We will critically examine the major challenges faced by the European aerospace industry. Then, we will analyze the suggestions for international competition as suggested by European institutions and industries. Most interestingly, we will also observe effectiveness of the new ideas to cope with international demands.

Extraits

[...] Innovative ideas to cope with the challenges of European Aerospace industries have recently been proposed by the European Advisory Group on Aerospace set up in 2001. Chaired by Erkki Liikanen, the group is composed of senior representatives from the private sector and the European institutions and looks at ways to modernise Europe's political and regulatory framework in order to keep pace with rapid economic and technological change in the aerospace industry. The Advisory Group has identified the key areas which will determine the future competitiveness of the industry. [...]

[...] Possibilities for applying tax and other incentives to promote innovation on a Europewide basis are proposed. But will such measures be in accordance with WTO regulations in that respect? B. Cooperation with the USA Increased cooperation with the USA can be proven by the spirit of cooperation that resulted in the French-English consortium for Concorde building and a consortium of several nations (including France, West Germany, Great Britain, the Netherlands and Spain) called Airbus Industries.[27] 1. Trade STAR 21 calls for a level playing field which allows fair competition in world markets, the relaxation of American' rules, convergence in export control procedures on products with US components, reciprocal market access and international co-operation programmes to help build new trading relationships. [...]

[...] (1994). A brief topdown look at Aerospace in the UK and Europe into the next century. Electronic Documents AECMA Annual Press Conference 2002. AECMA President Jean-Paul Béchat: Co- operation of all Stakeholders is essential for Future Success. (2002). [WWW] http://www.aecma.org/Press/pr0207.htm (27/12/2002) European Advisory Group on Aerospace outlines way forward for industry. (2002). [WWW] http://europa.eu.int/comm/enterprise/aerospace/index.htm (30/12/2002) European Parliament Fact Sheets. The aerospace industry. (2002). [WWW] http://www.europarl.eu.int/factsheets/4_7_6_en.htm (27/12/2002) The AeroSME project. (2002). [WWW] http://www.aerosme.com (02/01/03) The European Research Area Initiative. AEMA. [...]

[...] Governments have to share a significant part of the responsibility and the cost of security in air travel.' Indeed, no other industry is more relying on government policy and government purchasing power for its livelihood than aircraft.[2] Governement hardware procurement has produced an industry that is largely monopsony-an industry that has only one primary customer. The level of industry shipment, investment and employment are then in large part politically determined. So what are the major challenges facing the European aerospace industry ? To what extent has it been able to develop innovative responses to the pressure of international competition ? [...]

[...] Conclusion As a conclusion, It appears that European industrial regulations can't be designed without considering Global rules. They intend to develop the single market Aerospace industries but also have to comply with a series of WTO provisions. Global trade rules prevail on European legislation. The main challenges of the industry will be to develop innovation in the framework of the European Union. Trade issues are also at stake; such as the use of subsidies or protectionist measures on the one side or the other. [...]