commiss decis juli declar concentr compat common market function eea agreement case iv boe mcdonnel dougla english text authent text eea relev ec commiss european commun regard treati establish european commun regard european econom area eea agreement articl thereof regard council regul eec decemb control concentr undertak amend act access austria finland sweden articl thereof regard agreement european commun govern unit state america applic competit law articl ii vi thereof regard commiss decis march initi proceed case undertak concern opportun make view object rais commiss regard opinion advisori committe concentr februari commiss receiv notif propos concentr pursuant articl regul eec merger regul boe compani boe acquir control mean articl merger regul mcdonnel dougla corpor mdc examin notif commiss decid march continu suspens concentr final decis reach commiss subsequ conclud propos concentr fall scope merger regul rais doubt compat common market decis march initi proceed pursuant articl merger regul parti boe unit state corpor share publicli trade boe oper princip area commerci aircraft defenc space commerci aircraft oper involv develop product market commerci jet aircraft provid relat support servic commerci airlin industri worldwid defenc space oper involv research develop product modif support militari aircraft helicopt relat system space system missil system rocket engin inform servic mdc corpor share publicli trade mdc oper princip area militari aircraft missil space electron system commerci aircraft financi servic oper industri area involv design develop product support major product militari transport aircraft combat aircraft train system commerci militari helicopt ordnanc missil satellit launch vehicl space station compon system laser sensor command control commun intellig system commerci aircraft area mdc design develop produc modifi sell commerci jet aircraft relat spare part mdc engag aircraft financ commerci equip leas commerci real estat market commerci custom ii oper decemb boe mdc enter agreement mdc wholli own subsidiari boe iii concentr oper constitut concentr mean articl merger regul boe acquir mean articl regul control mdc iv commun dimens boe mdc combin aggreg worldwid turnov excess ecu billion boe ecu billion mdc ecu billion commun wide turnov excess ecu million boe mdc achiev third aggreg commun wide turnov member state notifi oper commun dimens impact oper european econom area oper commun dimens legal sens merger regul section iv import econom impact larg commerci jet aircraft market eea shown section vii competit assess relev market purpos assess oper world market larg commerci jet aircraft eea integr import part world market competit structur similar boe current market outlook european airlin account cumul forecast world demand ten year averag market share boe mdc eea year world exist fleet servic eea concern boe share mdc airbu world figur evid oper great signific eea world market eea import part vi cooper author complianc agreement european commun govern unit state america applic competit law agreement european commiss feder trade commiss carri notif pursuant articl vi agreement european commiss sought account import nation interest unit state stem consolid defenc industri pursuant articl vi agreement european commiss notifi author june preliminari conclus concern ask feder trade commiss account european union import interest safeguard competit market larg civil aircraft chairman pitofski feder trade commiss respond letter dai indic feder trade commiss account express interest european commun reach decis juli feder trade commiss reach major decis oppost merger juli pursuant articl vi vii agreement depart defenc depart justic behalf govern inform european commiss concern decis prohibit propos merger harm import defenc interest ii measur commiss impos parti purchas divestitur dougla aircraft compani dac unsuccess preserv dac stand manufactur aircraft result ineffici disposit dac aircraft manufactur oper potenti salvag boe loss employ unit state iii divestitur dac parti oper dac manufactur aircraft anti competit creat firm incent mean rais price diminish servic respect provis spare part servic dac fleet servic larg portion own airlin commiss concern consider extent consist commun law defenc interest concern commiss event limit scope action civil side oper establish domin posit strenghten creat defenc sector result propos concentr commiss pursu concern express statement object effect concentr intern market fighter aircraft dac concern commiss reason outlin consid divestitur remedi resolv competit problem creat concentr vii competit assess relev product market concentr affect market larg commerci jet aircraft larg commerci aircraft demand side custom gener approach purchas decis stage firstli oper requir technic requir final econom financi aspect oper criteria includ rout flown traffic densiti distanc optim seat load flight frequenc trade off fewer flight larger aircraft convers avail airport slot technic characterist includ rang capac perform reliabl fleet common degre facil aircraft integr exist fleet mainten servic network final altern aircraft evalu basi net present purchas price forecast oper revenu cost residu wide accept region jet market includ fokker bombardi british aerospac model distinct larg commerci jet aircraft market boe mdc airbu activ manufactur product seat nautic mile maximum rang threshold consid approxim combin upper limit specif requir region carrier part region jet incompat famili larg jet term rang oper characterist cargo carri major airlin acquir region jet specif region applic subsidiari exampl british airwai swissair crossair wide accept aircraft concern western built jet western aircraft russian ilyushin compet technic ground current version reason reliabl sale servic public imag notifi parti identifi relev product market narrow bodi wide bodi commerci jet aircraft commiss investig reveal vari opinion exist part manufactur custom segment market segment larg commerci jet aircraft market definit view complex demand side purchas criteria enumer narrow bodi singl aisl wide bodi twin aisl distinct propos notifi parti gener accept valid segment narrow bodi aircraft oper characterist rang approxim nautic mile seat capac passeng whilst wide bodi aircraft paramet nautic mile passeng segment narrow bodi wide bodi market paragraph conclud separ relev market market larg commerci jet aircraft market narrow bodi aircraft market wide bodi aircraft structur narrow bodi wide bodi market similar competit problem result propos merger market commiss assess effect merger market hand aircraft state product market consist larg commerci jet aircraft exist signific sale aircraft hand basi estim passeng aircraft deliv chang airlin whilst remain passeng third total demand freighter met convers passeng aircraft line previou practic commiss commiss decis eec octob case iv aerospatial alenia de havilland hand aircraft market separ aircraft market firstli note event constraint due inher longev good question distinguish constraint aris competit pressur due avail good altern supplier larg commerci jet aircraft sector life span product year exist larg fleet servic se impos cyclic constraint opportun manufactur sell aircraft actual market hand larg commerci jet aircraft concern characterist separ aircraft capit price hand aircraft lower run cost tend higher aircraft shorter life commiss investig reveal aircraft feasibl altern smaller airlin limit financi resourc constrain bui equip larg airlin aircraft typic acquir suffici number configur common meet longer term requir whilst aircraft meet specif short term tend complement substitut aircraft sale hand aircraft consid constitut market distinct separ market aircraft boe mdc activ market hand aircraft account relev geograph market larg commerci jet aircraft sold oper world similar condit competit rel transport cost deliveri neglig commiss consid geograph market larg commerci jet aircraft account world market effect concentr market larg commerci jet aircraft current structur market larg commerci jet aircraft competitor competitor worldwid market larg commerci jet aircraft boe airbu mdc boe fulli integr aerospac compani activ aerospac sector commerci defenc space boe world lead compani larg commerci jet aircraft sale repres revenu mdc fulli integr aerospac compani activ sector aerospac mdc world largest manufactur larg commerci jet aircraft world lead produc militari aircraft lead defenc firm world turnov militari space busi rest relat larg commerci jet aircraft airbu industri world largest produc larg commerci jet aircraft airbu establish decemb groupement intérêt economiqu gie consortium econom interest member airbu consortium includ privat own daimler benz aerospac airbu germani dasa british aerospac govern own aerospatial franc casa spain partnership uniqu member oper law countri incorpor partner financ research develop product aircraft airbu industri overse market servic aircraft fulli equip section airbu aircraft manufactur separ locat europ transport franc germani final assembl aerospatial manufactur cockpit dasa produc fuselag section aircraft wing manufactur british aerospac work distribut core compet partner custom custom larg commerci jet aircraft airlin includ schedul schedul oper leas compani airlin oper western aircraft manufactur market identifi airlin oper aircraft purchas aircraft year longer period demand remain concentr larg compani period boe largest custom account sale year estim half world jetlin fleet oper largest airlin leas compani account estim demand demand larg civil jet aircraft driven demand air transport grow cyclic steadi manner begin late latest main factor contribut industri growth develop air transport liber process commun addit demand china eastern block emphas market process expans strong growth demand predict condit cyclic natur industri current market outlook boe forecast year total market potenti aircraft equival billion dollar term demand correspond main region area asia pacif aircraft north america aircraft europ custom expect purchas aircraft equival billion word european custom account cumul demand percentag remain stabl year mdc european purchas amount billion total market potenti reach billion market share respect calcul market share notif propos specif method calcul figur year backlog firm order net order term unit aircraft backlog data wide indic market posit industri complet pictur market develop indic year evalu yearli backlog reflect develop net order number firm order minu number cancel order period base analysi backlog term term unit order account price size type aircraft purpos calcul market share weight boe price rang million bo price rang million share calcul dollar currenc price express market figur provid notif airbu worldwid market share market larg commerci jet aircraft term backlog decemb annex gt tabl gt notif includ british aerospac rj product line fokker segment narrow bodi aircraft view commiss type aircraft market event make signific differ british aerospac fokker aircraft includ market larg commerci aircraft margin posit similarli exist russian aircraft ilyushin includ reach stage technic develop appear constitut real altern reason reliabl sale servic public imag period averag share backlog gt tabl gt tabl annex graph annex increas share airbu share airbu remain stabl decreas boe share increas year contrast continu decreas mdc share develop wide bodi narrow bodi market similar market annex graph annex wide bodi market signific increas share airbu larg due order model stabl share order boe signific decreas continu increas mdc continu decreas narrow bodi market airbu increas market share boe share stabl mdc share decreas market structur eea show pattern world market annex tabl illustr gt tabl gt evidenc tabl annex graph annex eea develop market wide bodi narrow bodi market similar world market market boe increas market share continu signific increas market share airbu show slight increas whilst mdc market share decreas continu wide bodi market signific increas share airbu stabl share order boe signific decreas continu increas mdc continu decreas narrow bodi market airbu increas market share boe share stabl mdc share decreas world wide assess lead conclus signific improv late earli airbu maintain posit larg commerci aircraft level boe increas market share whilst continu decreas market share mdc wide bodi market combin market share boe mdc stabl high market share boe strong posit market larg commerci aircraft market propos notif make inroad boe posit airbu significantli improv posit whilst boe start high level increas market share continu period difficult airbu attack boe posit market gain market share reflect fact airbu succeed make signific inroad top oper fleet tabl paragraph market power boe allow behav appreci extent independ competitor illustr domin defin court justic european commun judgment case michelin commiss market segment larg commerci jet aircraft market number segment identifi tabl illustr amount approxim consensu industri segment gt tabl gt submiss made commiss mdc degre fluiditi segment driven cost consider aris fleet common remain case aircraft segment valid particuliar seat narrow bodi aircraft segment substitut seat narrow bodi aircraft limit extent higher trip oper cost extrem segment wide bodi aircraft boe appear long rang rout high densiti passeng rout europ usa japan altern boe combin largest capac longest rang exist aircraft appli domest rout high traffic densiti sever slot constraint boe notif airlin increasingli make aircraft purchas decis base famili aircraft select famili airlin select model boe argu airbu offer famili clear tabl boe enjoi benefit aris abil offer complet famili aircraft due presenc segment unlik airbu segment market larg commerci aircraft freighter freighter similar basic design definit passeng model adapt includ larg load door main deck structur reinforc increas payload adapt load cabin system demand side point view freighter configur larg commerci aircraft substitut passeng configur commiss consid freighter aircraft constitut separ relev market high suppli side flexibl passeng freighter aircraft convert aircraft suppli short term incur signific addit cost risk fleet servic boe compani state annual report led world product commerci aeroplan decad built jet aircraft manufactur combin typic long oper life product boe broadest custom base signific competit advantag vi vi competitor estim boe share current worldwid fleet servic western built larg passeng aircraft share mdc airbu year airbu began oper remain relat lockhe aircraft oper lockhe longer activ product commerci aircraft true exist larg fleet servic guarante success supplier commerci aircraft supplier offer limit rang aircraft type larg fleet servic combin broad product rang exist fleet servic kei factor determin decis airlin fleet plan acquisit cost save aris common benefit engin spare inventori flight crew qualif influenti airlin decis make process aircraft type select frequent lead acquisit type aircraft price compet product lower import exist fleet servic choic aircraft underlin airlin repli commiss question point context note boe largest fleet servic broadest product rang offer famili aircraft cover conceiv segment larg commerci aircraft exclus deal boe recent enter exclus arrang suppli larg commerci jet aircraft american airlin american delta airlin delta continent airlin continent novemb american boe agre long term partnership make boe exclus supplier jet aircraft american year american firm order aircraft includ order gener famili jetlin twelv order twelv er base boe list price order valu billion american obtain price protect purchas right addit jet year exclus period purchas right enabl american determin exercis option bui aircraft month advanc notic deliveri narrow bodi aircraft month deliveri wide bodi aircraft compar tradit month deliveri period report american pai purchas right receiv exchang commit bui boe jet time appear boe offer retroact price reduct aircraft purchas american previou campaign march boe conclud long term exclus arrang major airlin delta agre purchas exclus boe aircraft year delta firm aircraft order year includ ten er twin jet seventi gener twenti erx total order valu billion plan includ option estim billion roll option aircraft final june continent agre principl firm order purchas option boe condit continent meet larg aircraft suppli requir exclus boe year fact biggest airlin world lock year suppli agreement singl supplier indic boe enjoi domin posit larg commerci aircraft market deal facilit propos merger explain custom receiv econom benefit deal offset rigid incur lock singl supplier long period prove case competitor price lower technolog relat servic superior exist exclus deal boe airlin question import foreclosur effect worldwid market larg commerci jet aircraft year estim aircraft deliv worldwid firm order boe mdc airbu remain open market aircraft boe exclus deal includ option purchas right account estim open market market futur market growth parti argu suppli hand aircraft purchas power airlin constrain boe market power continu commiss view hand aircraft gener effect substitut aircraft explain hold true year demand aircraft expect grow hand aircraft possibl meet fraction grow demand high proport exist world fleet servic retir replac period anticip market growth lessen bui power airlin exercis period demand air transport forecast increas significantli annual rate foreseen airlin meet demand extent find vy obtain aircraft put favour negoti posit vi vi supplier bui power airlin vi vi boe event limit boe monopoli largest wide bodi segment propos concentr smallest narrow bodi segment potenti competit notif boe state potenti entrant larg commerci jet aircraft market compani situat russia india east china japan south korea indonesia boe effect admit massiv barrier entri market initi develop invest cost huge billion develop wide bodi jet boe product process character signific learn curv effect economi scale scope attain entrant compet effect time strict safeti regul compli european nation level boe notif potenti entrant identifi activ region jet market compet larg commerci jet market market definit confirm repli eastern compani suppli commiss compani involv region jet market subcontractor boe larg jet aircraft programm exclud potenti competit signific impact present competit situat forese futur conclus view characterist current structur market larg commerci jet aircraft exist market share boe size fleet servic recent conclus long term exclus suppli deal major custom lack potenti entrant commiss reach conclus boe enjoi domin posit market larg commerci aircraft market narrow bodi wide bodi aircraft ii strengthen boe domin posit propos concentr lead strengthen boe domin posit larg commerci aircraft addit mdc competit potenti larg commerci aircraft boe exist posit market larg increas boe resourc boe defenc space busi signific spill effect boe posit larg commerci aircraft make posit assail impact mdc commerci aircraft busi effect propos concentr boe increas market share market larg commerci aircraft take activ mdc boe futur face competitor market boe increas custom base current fleet servic boe increas capac commerci aircraft term skill work forc boe increas abil induc airlin enter exclus deal foreclos market increas market share market larg commerci aircraft boe increas market share term current backlog wide bodi market increas narrow bodi market boe market share increas boe add exist monopoli largest wide bodi segment monopoli smallest narrow bodi segment aircraft seat segment import great extent larg airlin feed hub achiev profit oper low traffic rout rout difficult substitut aircraft seat larger narrow bodi aircraft airbu due higher trip oper cost time compet aircraft smallest narrow bodi segment boe md note airbu undertaken discuss china asia manufactur develop seater negoti earli stage invest decis depend market develop scenario project influenc market forese futur boe achiev monopoli freighter segment deliveri freighter period averag annual world wide market share boe mdc combin outlin mdc longer real forc market commerci aircraft absenc potenti buyer commerci aircraft busi boe obtain time monopoli seat segment monopoli freighter segment present concentr competit potenti mdc competit influenc mdc past greater reflect market share outlin market share mdc continu declin appear impact mdc condit competit market larg commerci aircraft higher reflect market share commiss receiv repli airlin purchas larg commerci aircraft year purchas mdc aircraft remain airlin state case order boe airbu mdc competit part order airlin state competit mdc influenc outcom negoti winner bid term price purchas condit airlin state influenc major import state influenc minor import airlin state influenc mdc competit signific import confirm studi conduct lexecon behalf airbu present hear aircraft suppli competit analys compar mdc particip particip studi found mdc presenc led reduct realiz price compar list price order airbu concern ii todai mdc longer real forc market sale aircraft stand basi dougla aircraft compani dac oper commerci aircraft busi mdc gener oper earn million compar million million dac firm backlog billion appear oper earn dac essenti relat dac spare part product support busi sale aircraft contrast broader modern famili aircraft offer boe airbu dac offer type narrow bodi type wide bodi aircraft provid boe signific common benefit deriv earlier dougla model design appear main reason continu declin dac market share current backlog cover limit period futur product cancel mdxx program octob dac virtual receiv firm order reflect percept airlin mdc longer commit commerci aircraft busi leav market time context import dac lost month core custom american northwest airlin delta continent largest oper dac aircraft loss mainstream airlin custom point refer delta launch custom md gave signal market dac prospect market larg commerci aircraft circumst conclud dac todai longer real forc market stand basi iii parti acquir mdc commerci aircraft busi theori merger dac candid aerospac compani dac posit market deterior dramat extens market enquiri carri commiss made clear practic highli parti acquir dac appear inter alia due deterior situat dac airbu competitor left market larg commerci aircraft parent compani show interest acquisit dac potenti buyer interest enter market larg commerci aircraft acquisit dac appear current competit situat dac boe prepar mdc commerci aircraft busi iv competit potenti mdc commerci aircraft busi signific factor market integr boe group boe state decid continu discontinu dac product line access dac intern data boe decis depend number factor includ social polit consider indic boe current difficult situat dac decid continu dac product line time event boe continu product dac aircraft exist neg percept mdc prospect remov equal remov reluct extent part airlin bui dac aircraft stem uncertainti futur commerci aircraft busi part boe group dac aircraft market boe aircraft boe decid put dac aircraft competit contrast boe decid phase product dac aircraft time boe airbu gain market share freed decis boe preferenti access larg exist custom base dac outlin boe advantag posit replac time dac aircraft servic todai fleet servic boe increas share exist fleet servic oppos airbu increas long term relationship custom posit custom support significantli broaden custom base appear airlin oper boe mdc airbu aircraft end oper mdc aircraft oper mdc airbu aircraft addit airlin oper boe aircraft airlin oper boe mdc airlin oper boe airbu airlin oper boe mdc airbu airlin oper exclus airbu boe access airlin oper boe aircraft opportun closer contact airlin result ongo support activ provid opportun futur sale allow boe influenc custom recogn boe close contact larg number airlin product support activ gener acquisit mdc spare part mainten busi confer boe signific addit leverag exist mdc aircraft user combin mdc fleet constitut state total aircraft fleet worldwid mdc capac boe product capac leav spare capac appear figur relat tool capac exist workforc indic boe seek access mdc engin commerci aircraft develop product mdc annual report report relat plan futur commerci jetlin hundr engin mdc began work boe project decemb commiss accept difficult transfer engin personnel work combat aircraft product commerci aircraft product major problem engin work militari transport aircraft fact mdc agre fluctuat commerci programm militari transport caus product worker move back commerci programm programm aircraft industri flexibl capac abil increas decreas product easili import factor standpoint airlin manufactur offer requir deliveri slot period rapidli increas demand advantag crucial element rapid increas capac avail skill labour increas boe access mdc workforc exclus deal propos merger significantli enhanc boe capac enter agreement conclud american delta continent note airlin world largest launch custom aircraft model effect airlin suffici resourc commit aircraft model famili aircraft respect airlin oper boe mdc aircraft framework exclus deal boe offer provis addit mdc aircraft spare part support servic older mdc aircraft hand airlin order mdc aircraft streamlin fleet boe control mdc simpli cancel mdc order penalti paid airlin event cancel order signific report framework exclus deal boe offer back md deliv delta cancel exist order md boe ask commiss posit confirm deni arrang illustr link actual potenti size exist mdc fleet servic major airlin increas opportun merger boe conclud exclus suppli agreement airlin noteworthi american delta continent exclus suppli agreement exist fourth regard size mdc fleet servic gt tabl gt noteworthi prior agreement exclus deal enter larg commerci aircraft sector durat unpreced gener boe broader product rang merger financi resourc higher capac enabl respond airlin deliveri short lead time combin significantli increas boe abil induc airlin enter exclus deal note imposs airbu offer exclus deal airbu unabl offer full famili aircraft potenti effect exclus deal world top ten airlin block worldwid market base airlin exist fleet servic proport worldwid fleet scenario feasibl knock effect werebi larg airlin miss appar advantag accru competitor enter exclus deal result split worldwid market biggest airlin largest fleet exclus control boe merger leav competit suppli aircraft requir smaller airlin deal extend effect long frame long oper life typic industri product boe estim aircraft design oper life year impli fact aircraft bought year deal renew cover airlin year reason extrem long period purchas exclus boe airlin inclin face cost switch famili aircraft effect result defenc space busi mdc effect result mdc defenc space busi lead strengthen boe domin posit increas boe financi resourc increas boe access publicli fund amp intellectu properti portfolio increas boe bargain power vi vi supplier opportun offset bundl deal financi resourc concentr boe largest integr aerospac compani world estim revenu excess billion base figur boe commerci aircraft oper account total busi mdc ratio opposit total busi relat defenc space oper take account recent complet acquisit rockwel defenc aerospac boe approxim tripl defenc space activ propos mdc significantli increas boe abil cope econom cycl commerci aircraft budget constraint recent year revenu achiev defenc space sector stabl gener commerci sector airbu groupement intérêt économiqu gie publish financi account detail financi comparison airbu boe mdc rel magnitud organ respect total turnov figur gt tabl gt aerospac turnov airbu partner gt tabl gt argument contrari made boe includ turnov airbu partner airbu turnov militari aerospac activ concern import note airbu partner constitut integr busi entiti boe mdc individu stand compani airbu partner signific aerospac connect activ dasa part daimler benz group clear daimler benz find econom ration activ motor vehicl manufactur subsid airbu signific extent sharehold sound financi structur boe mdc ratio debt equiti billion billion oper result individu combin strength boe mdc gt tabl gt includ mdc boe pre tax profit forecast lehman brother climb billion billion sale billion year respect cash lehman brother state boe billion cash balanc sheet end decad earli centuri mid billion rang account boe mdc transpar regard profit margin achiev individu model financi analyst calcul signific differ exist profit margin made boe model estim margin significantli higher model smallest largest model mid size aircraft margin estim reflect monopoli posit boe smallest largest segment passeng aircraft market definit boe cross subsid sale mid size aircraft competit stronger higher margin achiev smallest largest aircraft fewer compet aircraft anticip addit product mdc boe opportun thought set price profit cost level mid size segment financ higher margin achiev smallest largest segment turnov cash profit combin doubl government fund militari amp tripl boe gener revenu gener defenc space sector increas scope cross subsid boe sale commerci aircraft case boe meet specif competit mid size segment wide bodi market price tactic emploi boe fact involv model order commerci jet aircraft scandinavian airlin system sa march newspap washington post report sa intern evalu committe recommend purchas dougla propos seat md jetlin million sa chairman sa order version boe vener million plane steep discount boe list price quot clear boe strategi prevent dougla launch md quot recal salesman involv competit data suppli boe lowest publish price seater aircraft million assumpt financi analyst calcul profit margin boe aircraft approxim correct actual sale price sa million aircraft impli profit whatsoev accru boe transact million approxim million clear state addit product mdc small segment md larg increas resourc enhanc boe opportun engag price practic view strong increasingli strengthen cash flow posit outlin past boe prepared strength resourc pressur competitor custom found letter address japanes aircraft leas compani sign order airbu aircraft report hear boe compani take decis extrem shock colleagu sure neg impact futur long term relationship compani enjoi year significantli undesir implic japan america aerospac industri cooper sign mr ronald woodard boe commerci airplan group presid decemb access publicli fund amp larg increas defenc space activ give boe greater access amp fund depart defenc dod nation aeronaut space administr nasa public bodi case respect amp militari aircraft amp aerospac industri larg extent fund govern figur compil aerospac industri associ america unit state total amp feder compani fund perform industri amount averag net sale manufactur compani contrast aerospac sector total industri amp amount net sale industri compani fund total industri amp whilst feder fund repres aerospac industri ratio complet total industri amp fund govern compani feder fund industri amp aerospac sector amount billion amount billion spent develop remaind attribut basic appli research main sourc fund industri amp dod nasa dod total budget aeronaut amp aircraft relat equip amount billion nasa budget aeronaut amp amount billion figur billion billion dod prime contract award research develop test evalu rdt amp relat aircraft amount billion amount gener dod expenditur amp larger european ministri defenc mod total dod appropri amp billion contrast total combin amp budget mod commun exclud austria sweden finland amount billion amount billion account mod franc germani unit kingdom countri main airbu partner respect space activ relationship similar total budget nasa billion contrast contribut member state budget european space agenc esa repres largest part space budget commun billion figur disproportion strictli compar mod commun necessarili coordin behaviour matter ii amp defenc sector public space sector receiv full fund govern unlik product procur programm gener perform firm fix price contract defenc space development programm perform cost reimburs type contract import amp contract engin manufactur develop emd contract financ engin manufactur develop system prior enter product phase programm contract cost award fee cpaf cost incent fee cpif contract cpaf contract involv cost reimburs award fee base award plan negoti begin contract cpif contract involv cost reimburs incent fee base perform schedul mileston instanc contractor invest amp expens earli phase defenc programm initi amp cost includ total programm cost contractor obtain dod product contract item independ research develop ir amp cost reimburs programm dod enabl elig dod contractor recov portion cost hous independ amp overhead payment dod cost contract definit allow ir amp includ project potenti interest dod vast major amp defenc product defenc relat applic fund dod similarli defenc programm space relat technolog programm receiv full fund amp programm primari custom govern iii propos merger boe greatli increas number amp contract defenc sector year averag boe achiev annual revenu feder amp contract averag revenu gener amp nasa space programm intern space station boe limit extent manufactur militari aircraft awac kc tanker manufactur fighter aircraft largest segment boe amp revenu militari aircraft averag militari aircraft account boe amp revenu result contract govern reason boe involv major programm develop militari aircraft fighter aircraft joint strike fighter tilt rotor aircraft year mdc receiv averag year militari aircraft segment account revenu result propos merger boe doubl amp revenu militari aircraft segment note merg compani boe mdc greater lesser extent involv current dod programm highest amp budget programm amp budget gt tabl gt appear import aircraft programm forese futur joint strike fighter jsf system leader mdc develop lockhe boe final contract jsf competit boe lockhe commiss consid merg compani boe mdc merger chanc final prime contractor develop jsf combin technolog resourc iv larg increas boe defenc amp confer number gener competit advantag compani discuss obviou advantag result defenc amp manufactur commerci aircraft transfer technolog develop public fund commerci sector technolog transfer mean manufactur commerci aircraft benefit militari amp extens particip privat compani highli sophist militari amp project help train technic personnel compani increas gener militari amp pai basic equip highli special tool commerci aeronaut work militari amp project lead specif technolog advanc fail programm commerci util compani carri inform compani research dead end avoid increas gener aris area design manufactur process dod support major programm synthet environ design technolog link advanc cad cam system product model simul significantli reduc time risk involv put aircraft product techniqu equal applic civil programm exampl appli composit technolog militari programm provid knowledg requir design manufactur composit structur design manufactur produc simul engin system develop mdc militari programm lead signific reduct time design cycl model develop md xx context note boe repli statement pursuant articl state comput softwar applic advanc tool manufactur autom manufactur electron product result commerci programm militari programm rah boe assert signific benefit commerci sector result gain militari programm exampl prove cross fertil commerci militari sector propos merger boe greatli increas benefit obtain transfer militari technolog commerci aircraft technolog develop defenc sector appli commerci aircraft main increas boe militari amp relat militari aircraft fighter aircraft fighter aircraft technolog wholli transfer compact packag system technolog transfer larg extent list estim lockhe martin percentag number fighter aircraft system type technolog transfer commerci applic gt tabl gt true state boe mdc recipi public fund militari amp subcontract signific amount work involv reduc opportun prime contractor boe mdc gain full advantag technolog expertis gener programm prime contractor access full detail amp work carri event question extent frequenc publicli fund amp work put subcontractor mdc state composit develop materi supplier boe mdc framework dod fund manufactur technolog programm develop low cost composit contract boe fuselag applic mdc wing applic manufactur technolog programm import part dod budget technolog transfer initi total million request lead posit fighter aircraft mdc lead manufactur militari transport aircraft appear technolog develop militari transport sector fulli commerci applic mdc recent announc decid produc commerci version militari transport aircraft context histor boe develop initi stage militari transport competit respect commerci applic militari technolog boe state term bilater agreement larg civil aircraft commun deriv identifi benefit commerci programm defenc govern programm period boe statement oral hear june admit exist broad common militari commerci research applic boe claim common benefit industri individu compani highli militari research contract subject secur confidenti rule nasa made limit exclus right provis provid protect inform govern parti particip agreement nasa programm high speed civil transport hsct propos successor concord protect public disclosur year respect commiss stress decis interpret notion indirect support articl abovement agreement carri econom analysi purpos merger regul context decis year boe deriv identifi reduct cost specif current commerci programm procedur merger regul signific larg increas boe militari amp outlin time confer signific competit advantag vi vi remain competitor larg commerci aircraft commiss consid true unit state line defenc civil aircraft programm clear european union polici defenc space commerci technolog highli link instanc august nation space technolog council state signific basic technolog common militari civil aviat product servic exploit increas product effici amp develop activ requir govern industri work activ seek technolog goal common civil militari applic dod feder aviat administr faa nasa expand focu encourag earli consider dual applic technolog develop programm decemb congression research servic report state dod dual technolog develop emphas expand commerci manufactur base produc militari product exploit militari technolog civilian purpos exampl provid administr emphasi dual technolog transfer militari civil applic aerospac sector dual polici make sens instanc direct transfer final product militari commerci applic aerodynam kc wing cockpit engin design contribut develop benefit system integr technolog gain develop awac md deriv product line benefit kc import impact transfer militari civil applic result effect level underli technolog lead signific increas product cost save argu boe benefit result publicli fund defenc space civil amp increas benefit propos merger compar prospect public aid develop commerci aircraft remain competitor airbu receiv futur militari space amp concern outlin undoubtedli remain extrem larg differ favour boe expenditur unit state europ civil amp concern level fund provid govern nasa excess level fund provid similar purpos europ germani countri major airbu partner feder budget civil aeronaut amp amount dm million million year nasa budget aeronaut amp amount billion feder budget dm million million gener aviat research figur compar budget billion feder aviat administr research engin develop numer statement govern offici includ nasa offici emphas increas focu facilit commerci applic amp exclus benefit industri true sonic aircraft hsct benefit larg explicitli target level govern fund amp subject form reimburs oblig contrast limit impos agreement trade larg civil aircraft commun unit state inter alia explicit limit reimburs condit establish type govern support typic grant europ understood remain mainstai futur european govern support aeronaut industri royalti base loan loan provid limit total develop expenditur larg civil aircraft subject interest payment reimburs disproport public amp support exist propos merger effect part mitig fact benefit result govern fund amp split compet compani case mdc relat limit commerci aircraft busi merger total govern fund amp boe mdc concentr singl entiti largest commerci aircraft busi world vi intellectu properti high technolog industri commerci aircraft manufactur intellectu properti patent form unpat extrem import competit potenti player market combin world lead manufactur commerci aircraft world lead manufactur militari aircraft lead combin larg portfolio intellectu properti publish patent belong boe relev commerci aircraft mdc estim hold patent boe patent mdc patent potenti restrict access import futur technolog includ area aircraft structur consider amp made order produc lighter resist materi allow increas aircraft rang speed payload extend aircraft life reduc mainten cost appear boe mdc patent enabl exploit area exclus composit combin discret materi constitu offer import improv perform airfram structur term weight reduct specif strength stiff fatigu resist design flexibl boe composit wing aerodynam recent innov contribut lower fuel cost nois land improv rang speed shorten develop cycl flight control area specular technolog progress made recent year boe mdc activ area inter alia framework nasa advanc subson technolog programm boe start patent technolog field fly light electr electron vital safeti cost effect amp extens boe mdc contract govern agenc sum commiss consid combin boe mdc patent portfolio element strengthen boe domin posit larg commerci aircraft bargain power vi vi supplier aircraft manufactur depend numer parti supplier varieti good servic rang materi compon larger system structur part airfram engin case supplier involv design develop aircraft larg supplier airfram manufactur enter risk revenu share agreement aircraft manufactur propos merger lead larg increas boe bui power estim activ aircraft manufactur base parti suppli boe achiev aeronaut sale mdc billion obviou combin aeronaut activ lead larg increas boe bui power vi vi supplier boe provid list supplier sale boe commerci airplan group million estim percentag sale boe mdc airbu relat total sale supplier supplier boe give estim compani suppli boe mdc compani achiev total turnov turnov aerospac sector case commerci sector sale boe mdc number supplier achiev sale boe mdc realiti significantli higher boe partial includ sale defenc space sector suppli relat result mdc larg militari busi account limit extent context note supplier aerospac sector question commiss consequ lose boe mdc custom critic ii boe increas bui power significantli weaken competit posit airbu concentr boe reinforc bui power respect supplier furnish part civil militari applic addit mdc bui power militari sector boe strong posit commerci aircraft increas supplier relianc boe put posit resist give boe prioriti airbu boe exert pressur numer supplier discourag work competitor airbu induc favour boe airbu term resourc alloc indic boe exist bui power influenc access airbu supplier risk share partner wide report begin year northrop grumman decid particip risk share partner develop xx refus northrop grumman announc award million contract upgrad awac radar prime contractor boe boe recent award northrop grumman million contract produc passeng cargo door aircraft context note suppli boe repres largest part northrop grumman commerci aircraft busi propos merger suppli combin northrop grumman suppli mdc defenc busi term absolut figur higher exist commerci suppli boe gener increas boe bui power significantli weaken competit posit airbu turn strengthen posit boe offset bundl deal offset deal mechan supplier technolog product capac purchas countri exchang countri purchas supplier product direct offset consist product technolog relat product sold indirect offset unrel product typic relat technolog field offset commerci aircraft sale common militari aircraft sale rule commerci aircraft sector offset part limit intern agreement appear commerci aircraft sector offset plai signific role countri state own nation carrier recent instanc cite exampl malaysian airlin order aeroplan boe basi offset programm malaysia develop avion composit materi industri press depart trade industri south africa recent impos offset requir long term govern purchas offset polici appli south african airwai attempt purchas aircraft boe frozen pend formal offset rule boe state past enter number commerci offset deal gener appear possibl offset deal confer signific competit advantag civil aerospac manufactur report manufactur allianc offset foreign sale defenc defenc equip date februari statement director offic aerospac depart commerc report administr conclud case defenc trade offset greater flexibl manufactur offer offset import competit advantag firm difficult airbu joint ventur govern sourc compon member countri work share countri greater flexibl regard boe mcdonnel dougla success penetr east asian market boe substanti offset capac larg commerci aircraft busi ad defenc busi mdc boe offset capac significantli increas result competit advantag similarli concentr increas boe abil enter bundl deal countri combin market boe commerci mdc militari aircraft viii conclus reason outlin commiss reach conclus propos concentr lead strengthen domin posit effect competit significantli imped common market mean articl merger regul ix remedi undertak submit boe view remov competit concern boe commiss undertak boe propos leverag dac instal base boe undertak provid structur remedi period year boe maintain dac separ legal entiti suppli commiss report certifi independ auditor describ busi perform result commerci line busi basi continu dac busi activ report made public condit boe manag fulli separ legal entiti make busi decis deem period reduc agreement commiss boe maintain dac aeroplan programm boe commit provid custom support dac aircraft high qualiti level provid boe aircraft includ boe tradit servic time time boe aircraft includ global network field repres hour technic servic hotlin aspect spare support includ dai shipment respons aog support world class mainten flight train boe appli boe guidelin procedur spare part avail price ensur level engin support boe agre withhold threaten withhold support dac aircraft includ spare part penal threaten penal oper respect support dac aircraft rais price increas deliveri time spare part oper propos purchas manufactur aircraft boe undertak continu make publicli inform includ price dac spare part catalogu boe privileg access exist fleet servic dac aircraft order leverag opportun persuad current dac oper purchas boe aircraft boe provid spare part product support favour term dac oper order persuad purchas boe aircraft boe propos exclus agreement boe enter addit exclus agreement august campaign manufactur offer enter exclus agreement boe enforc exclus right agreement american delta continent announc novemb march june exclus agreement purpos undertak mean contractu commit custom purchas leas aircraft manufactur commerci jet aircraft specif rang maximum gross weight capabl purchas fix percentag aircraft manufactur boe propos patent boe request commerci aircraft manufactur licens exclus reason royalti bear basi govern fund patent manufactur sale commerci jet aircraft boe licenc relat patent full effect rapid exploit patent govern fund patent mean patent claim invent conceiv reduc practic boe perform contract govern boe legal licens boe licens exclus reason royalti bear basi block patent includ relat defin paragraph aircraft manufactur agre similar term cross licens block patent boe commerci aircraft manufactur agre royalti patent govern fund patent manufactur sale commerci jet aircraft patent block disagr submit independ arbitr term procedur mutual agre boe manufactur period year earlier time commiss agre similar inform provid pursuant government bilater agreement signific chang occur competit environ includ market share product line boe suppli commiss annual report current unexpir patent claim invent conceiv reduc practic boe perform contract govern boe propos transpar amp project order provid increas transpar govern aeronaut amp project boe particip boe suppli commiss annual report year earlier time commiss agre similar inform provid pursuant government bilater agreement signific chang occur competit environ includ market share product line inform classifi aeronaut amp project project classifi govern nation secur law regul project descript project adequ enabl understand natur amp perform author contract project descript boe particip project boe contract descript applic year result incorpor boe intend incorpor larg commerci aircraft subsequ report boe advis commiss result amp project identifi prior report incorpor boe intend incorpor larg commerci aircraft request commiss respect amp project identifi prior report boe identifi studi feasibl applic result incorpor larg commerci aircraft descript patent obtain boe year invent conceiv reduc practic boe perform contract request commiss boe provid version report compli applic law regul regard disclosur inform commiss provid aircraft manufactur boe propos supplier order meet commiss concern boe leverag suppli relationship discrimin manufactur larg commerci aircraft boe make commit boe exert attempt exert undu improp influenc supplier directli indirectli promis increas suppli subcontract amp activ threaten decreas suppli subcontract amp activ leverag suppli relationship order supplier refus seek suppli relationship manufactur larg commerci aircraft refus increas suppli relationship manufactur larg commerci aircraft refus enter subcontract manufactur research develop larg commerci aircraft refus enter risk share partnership manufactur larg commerci aircraft delai amp activ suppli manufactur larg commerci aircraft grant preferenti treatment boe term lead time suppli prioriti amp activ subcontract boe reason busi justif boe retain select supplier enforc contract respect price qualiti schedul deliveri protect proprietari inform assess area competit problem addit competit potenti mdc commerci aircraft horizont effect larg increas boe defenc space busi effect dac oper commerci busi mdc longer real forc market concentr nonetheless lead strengthen boe domin posit larg commerci aircraft consequ undertak submit boe boe enhanc capabl enter exclus agreement irrelev forese futur boe allow enter futur exclus agreement period year abandon exclus right exist exclus agreement remov foreclosur market result exclus competit advantag boe access dac fleet servic reduc boe commit leverag product support dac fleet respect purchas aircraft risk boe continu product line dac dac aircraft discount aircraft reduc dac oper separ legal entiti annual public report oblig certifi independ auditor strengthen boe domin posit result larg increas defenc space busi undertak submit boe consequ commit patent aircraft manufactur access intellectu properti gain publicli fund amp respect block patent meet gener concern boe increas patent portfolio commit transpar contribut disciplin publicli fund amp make spill defenc space amp civil sector transpar commit suppli relationship reduc risk boe abus increas bargain power order imped competitor inter alia exclus contract supplier commiss consider specif aspect present case firstli post concentr oper market larg commerci aircraft boe airbu absenc interest part airbu acquir dac absenc interest compani enter market acquisit dac highli buyer found dac commit divestitur resolv competit problem result horizont effect spill effect defenc space busi commerci aircraft busi natur difficult quantifi fulli identifi difficult address fulli context present procedur merger regul framework agreement european commun govern unit state america applic competit law commiss consider import interest unit state commiss inform depart defenc depart justic behalf govern paragraph packag undertak submit boe combin structur behaviour element specif circumst explain relat manifest absenc buyer dac commiss accept combin undertak treat consid balanc adequ address competit problem identifi present decis remov concern strengthen boe domin posit market larg commerci aircraft ensur full complianc boe commit applic articl subparagraph commiss monitor complianc boe commiss expert appoint commiss access intern data relev implement monitor request commiss prepar discuss complianc commit final conclus commiss conclud subject full complianc commit made boe set recit propos concentr creat strengthen domin posit result effect competit significantli imped common market substanti part adopt decis articl subject full complianc boe condit oblig contain commit set recit decis oblig submit monitor complianc commit set recit concentr boe compani acquir control mcdonnel dougla corpor declar compat common market function eea agreement articl decis adress boe compani east margin south seattl wa usa brussel juli commiss karel van miert member commiss oj correct version oj oj oj publish version decis inform hereinaft omit pursuant provis articl regul eec disclosur busi secret sourc uk depart trade industri oj boe report term refer continent europ exclud soviet union state includ turkei ecr includ boe current market outlook delta continent deal announc merger american deal announc week merger sourc boe mdc annual report sourc boe mdc annual report sourc lehman brother april sourc lehman brother april sourc washington post april sourc lehman brother april sourc airbu submiss commiss annex iv boe mdc larg commerci jet aircraft backlog market share evolut world gt tabl gt gt tabl gt gt tabl gt gt tabl gt annex narrow wide bodi world gt refer graphic gt annex narrow bodi world gt refer graphic gt annex wide bodi world gt refer graphic gt annex iv boe mdc larg commerci jet aircraft backlog market share evolut eea gt tabl gt gt tabl gt gt tabl gt gt tabl gt annex narrow wide bodi eea gt refer graphic gt annex narrow bodi eea gt refer graphic gt annex wide bodi eea gt refer graphic gt