Aviation
Commercial /
China
Fear of China!
Classic disputes in the Western aircraft industry end in the name of the common “good”
Airbus A319 da Latam
Por Rafael Luiz Canossa - A319, CC BY-SA 2.0, via Wikimedia Commons
Rafael Ramos
6/18/2021
In February, the Brazilian government communicated to the WTO (World Trade Organization) its desire to end the dispute with Canada, in which it questioned the subsidies given by the government to the Bombardier company. started in 2017, the dispute between Embraer x Bombardier came to an end.
More recently, on Tuesday 15, the United States and the European Union resolved a long-running dispute over government subsidies. The dispute began in 2004, when Boeing was accused of having received 19 billion dollars against US government rules.
Boeing 787 Dreamliner da El Al
Por LLHZ2805 - Obra do próprio, CC BY-SA 4.0, via Wikimedia Commons
The disputes seem to have ended for the same reasons. The companies are looking to protect themselves from the Commercial Aircraft Corporation of China (COMAC), a Chinese manufacturer that has become better known after the 737 MAX incidents.
COMAC has a new aircraft that will confront the Boeing 737 MAX and the Airbus A320neo. Even if China only serves the domestic market, it may start to gain space to compete with these aviation giants.
When companies enter the same segment, the one that has government subsidies does better, as explained by Gustavo Cruz, strategist at RB Investimentos. Without these subsidies, the market tends to be more balanced.
Boeing 737 MAX
Image: Boeing
In this sense, Embraer can do well in the US market, which is its main market and which is recovering due to favorable conditions.
It turns out that the big manufacturers have realized that if there is no consensus on what the fair terms of subsidies are, they will not be able to complain if COMAC were to receive subsidies from the Asian giant.
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Rafael Ramos
Aviation enthusiast from an early age, he had his first contacts with the area developing that good old habit of spending dozens of hours in front of the screens of Micrsoft Flight Simulator and other simulators. With a solid background in various technological areas, including engineering and chemistry, Rafael has rejoined aviation as editor and author of articles and materials on our portal, providing invaluable help to the dynamics and expansion of the website and the aeronautical community, bringing us the news and updates so indispensable for us to remain current in our area of operation.
   
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