Download PDF by Lowell W. Steele: Competitive Status of the U.S. Civil Aviation Manufacturing

By Lowell W. Steele

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Extra resources for Competitive Status of the U.S. Civil Aviation Manufacturing Industry : a Study of the Influences of Technology in Determining International Industrial Competitive Advantage.

Sample text

THE PRESENT ENVIRONMENT 29 2— The Present Environment The environment began to change in the mid-1970s. S. outlook. Evaluating the significance of these events and predicting the emerging trends is complicated by the deep recession of 1981–1982 that has affected civil air travel and aircraft procurement worldwide. S. airlines resulting from an inability to match revenues to increases in operating costs and deregulation of routes and fares; growing emergence of serious foreign competition in aircraft manufacturing; increasing importance of international markets; escalation of financial risks in the development, manufacture, and marketing of new aircraft; internationalization of aircraft manufacture; and foreign government involvement—some would say participation—in the industry.

Department of Commerce. The functions of the CAA were divided in 1948. Two separate agencies, the Civil Aeronautics Board (CAB), and the Federal Aviation Administration (FAA) were established. The CAB was assigned to handle route and economic matters (economic regulation). The FAA was charged with technical, safety, and certification matters. Both were charged with encouraging the expansion of the industry. , extensive domestic routes and long-range overseas routes using the China Clipper). S. civil aircraft, and especially engines, benefited from the continuous stream of large R&D investment by the military establishment, especially the competition for jet bombers.

THE PRESENT ENVIRONMENT 30 fleet. Because of CAB regulation the major airlines engaged in almost no fare competition to achieve lower costs through modifications in service or economies in airline operation. They did little to probe customer preferences by experimentation in fares or levels of service. The major airlines, not surprisingly, resisted both the entry of new airlines and attempts of smaller commuters to expand routes and service, even though they themselves were not aggressive in serving low-density locations that did not provide an attractive basis for profitable operations.

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Competitive Status of the U.S. Civil Aviation Manufacturing Industry : a Study of the Influences of Technology in Determining International Industrial Competitive Advantage. by Lowell W. Steele


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