Boeing vs Airbus

Topics: Boeing, Airbus, Competition between Airbus and Boeing Pages: 5 (1822 words) Published: September 10, 2008

This book by John Newhouse provides an exhilarating account of the competitive battle between the world's dominant commercial aircraft manufacturers. In the Aviation Industry, there have always been various airframe producers which where competing against each other. Throughout the years, two of them gained the majority of the market share. It encompasses two of the biggest companies in the world, going to extremes to finalize sales, and more importantly, to gain a higher percentage of the market share and outmaneuver the other. Airbus and Boeing are seen as national symbols that receive massive subsidies, benefits, contracts from the EU and the American government. This book gives a review of both Airbus and Boeing’s objections and future market outlooks in relation to the new A380 and Boeing 787 “Dreamliner”. This report outlines some of the key factors in John Newhouse’s Boeing Vs Airbus thriller. BACKGROUND INFORMATION OF AIRBUS AND BOEING

Airbus has been in business for a little over 30 years and is jointly owned by European Aeronautic Defense and Space Company-EADS (80%) and BAE systems (20%) which are two of the largest defense contractors. Airbus now a single company, headquartered in Toulouse France, began as a French-German consortium in 1970 that was soon joined by Spain and later Britain. (Company Website) It is an aircraft manufacturing company, which develops, manufactures, and sells aircrafts. “The Airbus product line comprises 14 aircraft models, from the 100-seat single-aisle A318 jetliner to the 525-seat A380 - which is the largest civil airliner in service”. (Company Website) Today, Airbus produces around half of the world’s jet airliners. The Boeing Company is a major aerospace and defense corporation, originally founded by William E. Boeing. Its international headquarters is in Chicago, Illinois, USA. By revenue, Boeing is the largest global aircraft manufacturer, by orders and deliveries, and the second-largest aerospace and defense contractor in the world. (Company Website).Boeing has long been one of the world’s largest civil aircraft companies. In 2006, it took 55% of global commercial aircraft orders for the first time since 2000. The largest exporter in the United States, Boeing’s stock is a component of the Dow Jones Industrial Average. (Company Website). AIRBUS VS BOEING COMPETITION

Airbus is benefiting from a broad-based customer focus as well as highly innovative designs. Its emphasis on environmental issues for its aircraft is one of the most telling aspects of its internationalism. In 1988, Airbus controlled 16% of the market, climbing rapidly to 37% in 1996. By 2004, however, Airbus has rocketed to over 50% of the market, delivering 305 jets in 2003, and signaling its major suppliers its intention to deliver 310 jets in 2004 and 400 jets in 2005 (Newhouse 85). Boeing on the other hand, has emerged as a world leader of aircraft production after a series of mergers and purchases including such companies as Rockwell International, McDonald Douglas, Hughes Electronics, Jeppesen Sanderson and Hawker de Havilland. (Company Website) Given their multiple successes, it is not surprising that Airbus and Boeing have a number of competition factors driving their innovations. Foremost is their competition in wide-bodied commercial aircraft, as it is not only a competition between companies but also a subject of repeated trade disputes between the US and the EU. The newest models in production by Airbus and Boeing represent their competing views of the future of the industry. The Airbus A380 is their solution to growing traffic between major hubs. Their plans for the A380 signify their current goals of reducing operating costs, increasing range, reducing fuel burn, and reducing noise and emissions. However, the competition between Airbus and Boeing is played out in the future, one is guaranteed to witness increasing complexity in maneuvering...
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