Managing Business in Europe

12

3000

The formation of the European Monitory Union (EMU) and its subsequent policies stirred the aircraft manufacturing industry to a new level of anxiety and competition. At the forefront of this competition, wars are the two major manufacturers of large commercial aircrafts, Boeing and Airbus. The success story or lack thereof of the euro poses a lot of challenges to the role the U.S dollar has played in the international aircraft market, more so in the European market. Most affected in this regard is Boeing, which carries out its production and sales using the dollar. The negative impacts of a credible euro on the dollar stem from the fact that the euro has become an attractive alternative to the dollar in the European aircraft market. The euro’s challenge to the dollar as the world’s leading currency in the aviation industry still attracts a lot of debates and uncertainty. On one side of the debate are those stakeholders holding the opinion that forces of inertia will still see the dollar maintain its role as the leading currency in the aviation industry for quite a long time. The euro-enthusiasts, on the other hand, foresee a situation in which the euro will soon rival the dollar as the preferred currency in the aviation industry’s manufacturing subsector. Besides the above lines of thought, there are those aviation stakeholders who assert that it is too early to postulate on the long-term impacts of the EMU on the role of the dollar or the euro on the manufacturers of aircraft such as Boeing and Airbus.