P2-5. Why does the EU offer aid to Airbus? Why does the United States offer aid to Boeing? Since its initial commercial flight in 1969, the Boeing 747 benefited from its status as the world’s largest commercial aircraft. Its costs per seat mile were lower than that of any other aircraft available, largely because the 747 can seat as many as 495 people. Although its low costs were attractive on transatlantic and transcontinental routes, they were of particular importance in charter, transpacific, and freighter operations. Boeing’s monopoly in the jumbo jet market gave it an advantage over Airbus in selling smaller aircraft as well. Spare parts can often be used for different models of aircraft produced by the same manufacturer, which sometimes is enough of an advantage to sway an airline to purchase a Boeing product over the comparable one manufactured by Airbus.

Airbus targeted the 747 for years. In 2000, its engineers finalized the plans for a 650-seat aircraft, the A380, which dwarfs the 747. The A380 then underwent extensive design, testing, and certification procedures. In October 2007, Singapore Airlines offered the first commercial flight of an A380, from Singapore to Sydney.