Locating Airbus Plant in Alabama Could Lead to Dogfight with Boeing

It would be Airbus's first manufacturing plant in the western hemisphere, threatening Boeing's grip over the U.S. jet market.

But while the facility will be at first tuned to construct Airbus's new A320 single-aisle aircraft, the potential for EADS to also use the facility to manufacture military equipment could end up becoming a nightmare for Boeing. EADS could easily expand or convert the future plant to support its growing defense businesses, like its popular Eurocopter attack helicopters or its cutting-edge jet fighters and support aircraft. With a facility up and running in the US and already staffed with thousands of American workers, EADS could nab quite a few lucrative military contracts away from Boeing, raising the stakes in the global aerospace wars.

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Keywords: supply chain management, global logistics, supply chain jobs, aerospace industry incentives