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Phil Condit feels his stomach knot as the consultant's presentation grinds forward.

It's April 1996, and it's his first day as Boeing's CEO.

Boeing is the world's number one aircraft maker.

Condit joined the company as an engineer 31 years ago and dedicated his life to reaching this lofty position.

But his reign is kicking off with a kick in the teeth.

He and 17 other top Boeing execs are in a meeting room at the company's Seattle head office.

They've gathered to hear a team of external consultants explain how their biggest rival, Airbus,

is undercutting them. Boeing thought little of Airbus when it launched over 25 years ago.

It was the brainchild of Western European governments, created as a lifeline for the old world's

fading aircraft industry and funded by European taxpayers. It's not even a company, more an awkward

coalition of French, German, Dutch, Spanish, and British manufacturers. But despite the shaky

beginnings, Airbus beat expectations. It's now the only aircraft maker capable of challenging Boeing

in commercial aviation.

It owns almost 30% of the market, and it's gunning for Boeing's 63% share of the market.

So Boeing's called in external consultants to dig into Airbus' recipe for success.

Condit listens, as they confirm the executive team's worst fears. Airbus

isn't undercutting Boeing because it lives off government subsidies. Its prices are lower because it's

better at building aircraft. Airbus can make just as many planes as Boeing can, but it can do that

with half the manufacturing space.

Its production lines are more automated and less wasteful too.

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