The parent company of Airbus, EADS, is in merger talks with the continent's biggest defense contractor, BAE systems. That could put U.S. leaders Boeing and Lockheed Martin playing a little defense themselves.

The biggest event of the year for airline makers like Airbus and Boeing is wrapping up outside of London. And at this year's Farnborough Air Show, the companies have announced orders worth more than $50 billion. Sounds like a good thing for the industry — and the economy.

The European airplane maker plans to build its first U.S. assembly plant in Alabama. Why and what does this mean for rival Boeing?

Airbus checked off orders for over 1,400 new planes in 2011, while Boeing only tallied up order for around 800 new planes last year.

The cuts are supposed to level the playing field in the airline business, but the conflict between Europe's Airbus and America's Boeing could continue to rage on for years.