May 3 1976

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The European aerospace industry was frustrated in attempting to increase its share of commercial and military aircraft sales, said Robert B. Hotz, editor-in-chief, in an editorial in Aviation Week magazine. Although maintenance of a viable European aerospace industry' would be in the best interest of the Western world, Hotz said, attempts to organize it on a truly international competitive scale had emphasized inherent weaknesses and failed to achieve fiscal success. Recent developments nationalization of the British aircraft industry, and French moves toward a transatlantic rather than a cross-channel cooperation-had intensified the problems, characterized by higher wage scales and lower productivity. Suggestions for improvement included organizations based on commercial and technical considerations, rather than on political boundaries and restrictions; marketing goals based on the broadest markets possible, rather than on narrow domestic requirements; and controlling labor costs that had priced European products out of the export market and had held production to a rate below that needed to fill international market requirements. (Av Wk, 3 May 76, 5)

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