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Research Report

EADS/Airbus Government Ownership, Protection, Intervention & Subsidies

Center for Security Policy
Copyright Date: Sep. 1, 2010
Pages: 35

Table of Contents

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  1. (pp. 2-2)
  2. (pp. 3-4)
  3. (pp. 5-6)

    Prior to 1941 the U.S. military relied on its government- owned arsenals and shipyards for much of its procurement needs. Since then, the Department of Defense has transitioned to a predominant reliance on private commercial arms-makers for its needs during both war and peace.¹ This Post WWII belief in private enterprise was so strong that, during the height of this transformation in 1960, the Air Force procurement Chief testified, “All things being equal, the man without the Government facility will get the award.”² The privatization of U.S. military procurement since World War II was not simply an exercise in the...

  4. (pp. 7-8)
  5. (pp. 9-24)

    The current KC-X refueling tanker contract, in which the European Aeronautic Defense and Space (EADS) company and its subsidiary Airbus are competing, has been aggressively publicized as an example of the free market working as it should. Some groups have even gone so far as to lobby Congress not to act on its tanker contract concerns, arguing any Congressional action would be anti-free market and tantamount to “an earmark” for EADS’ American competitor. 8 These self-professed champions of free enterprise and the free market, for whatever reason, have promoted an erroneous view of free market operations and EADS.

    Airbus was...

  6. (pp. 31-34)
  7. (pp. 35-35)