A strong world economy and recovery from the 1990-1993 global recession would ensure continued steady demand for airline, corporate, and general aviation aircraft and equipment. Space exploration and commercialization face unreliable government funding and uncertain commercial demand. A successful conclusion of multilateral negotiations to reduce government supports to international aerospace industries would help level the playing field for U.S. manufacturers. The future prospects for the large civil aircraft sector are mixed. Defense cuts continue to have a significant impact.
Exports are crucial to both companies.
Boeing exports 55 percent of its aircraft of its products. Therefore, the significant reductions in DOD and foreign government military aircraft procurements, as well as the global recession have been significant . In the past, business on the commercial side has compensated for the cuts in defense. In the past, deregulation fostered increased price competition among airlines, the economic downturn and slowdown in traffic reduced or even eliminated profit margins in the short-term for many carriers, with some companies declaring bankruptcy. Braniff, Eastern, and Pan Am went out of business.