EU and Aerospace and Aviation

EU and Aerospace and Aviation
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The multi-institutional and multilateral nature of EU decision making has lead to
development of legislations that are the driving forces for EU businesses. The paper will
specifically identify one of the legislation which is product of multilateral decision making in EU
and describe how the legislation has benefited air industry.
One of the recent legislation in EU in Aerospace and aviation is formation of the
Common Aviation Area and the Open Aviation Area (Gudmundsson, 2015). The legislation has
helped aviation industry in many areas.
EU corporations, as a rule, specialize in one of civil aircraft engineering sectors (the core
business), have the combat air force division and a hi-tech business. This structure provides for
economic stability of such corporations in the global highly competitive aviation market, growth
of labor productivity and stock value. Furthermore, the governments of European States, despite
the availability of serious American competitors, support competition, first of all, in the combat
air force sector, ensuring the economy of budget resources of their countries (Suder, 2011).
EU corporations, thanks to competition and the well-thought-out diversification of their
businesses, ensure a steady growth in economic indicators (total revenue, stock exchange value
of shares, modernization of products). It is concluded that in the face of increasing competition
in the global aircraft industry (Bocola, 2016).
Over the past decades, the European aviation industry has gone a long way, repeating in
general the actions of American aircraft manufacturing corporations. At the first stage (1980s),
which included the diversification of the business through the acquisition of smaller high-tech
companies, the economic stability of the companies and their intellectual potential were
increased. At the second stage, again, due to mergers and acquisitions, enlargement of