Dislike Boeing's decision to follow Airbus and reengine its single-aisle product? You are not alone. Many analysts and commentators have expressed disappointment.

Is the aerospace industry on the cusp of a great wave that will shift work to low-cost producers in China? Or is offshoring a minor phenomenon being exploited by companies to win concessions from workers and local governments? Taking the former view is William C. Parr, a faculty member of the University of Tennessee's Aerospace Executive MBA program. He recently returned from a three-month stay in China, where he taught and conducted research on offshoring and Chinese management practices.

The trainer market is fast becoming dependent on shared programs. BAE Systems' Hawk won a notable victory in this market in mid-2003, with an order for the U.K.'s Military Flying Training System (MFTS) competition. While only good for an initial 20 planes (with 24 more options), the order preserves a production line that had been in danger of closing. The order, and the launch of MFTS, also cements the U.K. lead in trainer manufacturing and services.