A Competitive Assessment Of The U S Civil Aircraft Industry

In 1985, the U.S. aerospace industry achieved a $13.1 billion trade surplus and contributed $89.2 billion in shipments to the U.S. economy. Without·aerospace, the U.S. trade balance in high technology industries would--for the first time--have fallen into a deficit. Civil aircraft play a significant role in the U.S. aerospace industry, and U.S. civil aircraft have dominated world markets (particularly the large transport segment) since the development of jet engine aircraft in the 1950s. This dominance has recently been challenged by the emergence of the European Airbus Industrie, which has achieved a significant market position in wide-body aircraft and appears committed to the development of a diversified family of civil aircraft. Industry observers are also concerned about the possibility of Japan entering the large transport competition. In this assessment, the U.S. Department of Commerce examines the prospects for continued international competitiveness of U.S. civil aircraft. The report identifies key factors that will determine the shape of future competition, develops alternative scenarios for the future, and presents-a framework within which developments can be monitored and measured.

1.: INTRODUCTION 2.: EVOLUTION OF THE U.S. CIVIL AVIATION INDUSTRY AND ITS RELATIONSHIPS WITH THE FEDERAL GOVERNMENT 3.: TECHNOLOGICAL AND PERFORMANCE EVOLUTION OF THE U.S. CIVIL AIRCRAFT INDUSTRY 4.: RECENT INDUSTRY PERFORMANCE 5.: PAST AND CURRENT COMPETITIVENESS: LARGE TRANSPORTS 6.: THE ECONOMICS OF LARGE TRANSPORT DEVELOPMENT, PRODUCTION AND OPERATION IN THE UNITED STATES 7.: TRENDS AND FORCES INFLUENCING THE FUTURE: U.S. LARGE TRANSPORTS 8.: THE FUTURE INTERNATIONAL COMPETITIVENESS OF U.S. LARGE TRANSPORTS: CONVENTIONAL ECONOMICS OF LARGE TRANSPORT DEVELOPMENT AND PRODUCTION 9.: THE FUTURE INTERNATIONAL COMPETITIVENESS OF U.S. LARGE TRANSPORTS: A NEW ECONOMICS BASED ON SUPERCOMPUTERS, SUPERSOFTWARE AND COMPUTER-INTEGRATED MANUFACTURING 10.: THE FUTURE INTERNATIONAL COMPETITIVENESS OF U.S. GENERAL AVIATION AIRCRAFT AND HELICOPTERS.

In 1985, the U.S. aerospace industry achieved a $13.1 billion trade surplus and contributed $89.2 billion in shipments to the U.S. economy. Without·aerospace, the U.S. trade balance in high technology industries would--for the first time--have fallen into a deficit. Civil aircraft play a significant role in the U.S. aerospace industry, and U.S. civil aircraft have dominated world markets (particularly the large transport segment) since the development of jet engine aircraft in the 1950s. This dominance has recently been challenged by the emergence of the European Airbus Industrie, which has achieved a significant market position in wide-body aircraft and appears committed to the development of a diversified family of civil aircraft. Industry observers are also concerned about the possibility of Japan entering the large transport competition. In this assessment, the U.S. Department of Commerce examines the prospects for continued international competitiveness of U.S. civil aircraft. The report identifies key factors that will determine the shape of future competition, develops alternative scenarios for the future, and presents-a framework within which developments can be monitored and measured.

Deregulation, higher costs, foreign competition, and financial risks are causing profound changes in civil aviation. These trends are reviewed along with growing federal involvement in trade, technology transfer, technological developments in airframes and propulsion, and military-civil aviation relationships. Policy options to preserve the strength and effectiveness of civil aircraft manufacturing are offered.

"This study was requested by the House Committee on Ways and Means in a letter dated March 8, 2000. The Committee requested that the U.S. International Trade Commission (the Commission) examine the ability of the U.S. civil aerostructures industry to compete over the short and long terms with those industries in Europe, Canada, and to the extent possible, Asia. The Commission's report examines the composition and recent trends of the large civil aircraft (LCA) aerostructures industry; the process of new aerostructures development; the means and trends of government support for research and development; and the relative strengths and weaknesses of the aerostructures industries in these countries and regions, for the period 1995-99 and to the extent possible, 2000"--Publisher description

"This study was requested by the House Committee on Ways and Means in a letter dated March 8, 2000. The Committee requested that the U.S. International Trade Commission (the Commission) examine the ability of the U.S. civil aerostructures industry to compete over the short and long terms with those industries in Europe, Canada, and to the extent possible, Asia. The Commission's report examines the composition and recent trends of the large civil aircraft (LCA) aerostructures industry; the process of new aerostructures development; the means and trends of government support for research and development; and the relative strengths and weaknesses of the aerostructures industries in these countries and regions, for the period 1995-99 and to the extent possible, 2000"--Publisher description