Preview

Airbus Boeing

Good Essays
Open Document
Open Document
851 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Airbus Boeing
Boeing Versus Airbus

In today’s marketplace, distinct differences in the way competitive products work have become increasingly rare. But functional product differentiation is exactly what the rivalry between the Airbus A380 and the Boeing 787 Dreamliner is all about: Two companies with fundamentally different products, based on diametrically opposite visions of the future, engaged in a Hatfields versus McCoys battle with billions of dollars at stake.

Each company has made a series of big bets.

The Airbus A380 super-jumbo is a plane for the annals of aviation history. When it goes into service later this year, it will be the biggest, baddest airliner around, capable of ferrying from 550 to 800 passengers (depending on configuration). With its two full-length decks and the promise of amenities such as sleeper cabins, cocktail lounges and a gym, it is sure to capture the public’s imagination.

But for all its promise of innovation, the A380 represents a bet-the-house wager on one of the most disliked same-old models of air travel: the hub-and-spoke. The A380 is built around the assumption that airlines will continue to fly smaller planes on shorter routes (spokes) into a few large hubs, then onward to the next hub on giant airplanes. It also presumes that passengers will want to put up with the hassles of changing planes in exchange for the privilege of traveling in a jet-powered cruise liner.

Whether the A380 will live up to the hype remains very much to be seen. Passengers may become disenchanted with the plane if it turns out to be a freighter rather than a luxury liner. When airlines can choose between more seats and a gym, out goes the gym. Sound cynical? Not to those of us who fondly remember the upstairs first-class lounge in the early 747s.

Second, and even more importantly, Boeing’s 787 represents an appealing alternative. It’s based on a fundamentally different vision, and it is radically different by

You May Also Find These Documents Helpful

  • Satisfactory Essays

    The new Boeing 787 Dreamliner is the new industry leading aircraft. It provides new technology that no other aircraft does, including a new in-flight entertainment. The Dreamliner is more efficient in every way including fuel efficiency. The range of the new fuel efficient aircraft may even provide more travel opportunity in the…

    • 53 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    Airbus Case Analysis

    • 1553 Words
    • 7 Pages

    1. Reasons that Airbus interested in A3XX  A Revolution Adventure -- The first objective of this project is to fill the market gap by introducing a new type of aircraft. Airbus, with A3XX under the plan, is stepping into an area that Boeing has rarely touched, the very large aircraft (VLA) market. If Airbus well forecasts the future market, A3XX will be the flagship in a new airline revolution. Capturing more than half the VLA market with A3XX, Airbus would constitute an enormous financial success and achieve the ultimate objective-- the leader of commercial aviation industry.  Abundant Financial Resources and Developed Technologies -- Airbus possesses abundant funding resources and cutting-edge technologies which could substantially reduce the training cost. Airbus was prepared to receive around $4 billion development loans from the British, French, German and Spanish governments, repayable from sales revenue. Together with contributions from risk-sharing partners and its own shareholders, Airbus has no need to worry about its financial resources and thus can concentrate on the production and sale of A3XX. In addition, the well-developed aircraft technologies such as fly-by-wire technology, fight deck design, and performance characteristics that are common across the Airbus family pave the way for the A3XX’s development and potential market.  Favorable factors from Context Analysis -- Needs for travelling and cargo transportation are essential parameters which airlines have to take into consideration; hence, they are also vital determinants of demand for commercial aircrafts. According to Airbus’s Global Market Forecast (GMF), air transportation industry is expected to grow at 4.9% annually. This continuous growth demand of the flight market can offer Airbus Company a sound support to launch new types of planes. In…

    • 1553 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    By looking at the entire flying experience, Boeing developed new product innovations in the 787 Dreamliner. Such innovations bring 20% less fuel consumption than comparability sized planes, an interior that offers a flexible design aimed at providing multiple configurations for seating capacity, increased cargo capacity, enhanced safety and technology to cut departure delays and improvements to the passenger travel experience.…

    • 1955 Words
    • 8 Pages
    Better Essays
  • Good Essays

    8. Many Features This will give higher probability that the customer would buy the product because of the extra features. This is absolutely an advantage for the company. If passengers are satisfied by this aircraft most probably that the airline would buy again from the same company of aircraft gaining customer loyalty.…

    • 1050 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Jetblue Case Study

    • 1027 Words
    • 5 Pages

    that includes new aircraft with more leg room and wider cabins, leather seats, simple and…

    • 1027 Words
    • 5 Pages
    Good Essays
  • Best Essays

    The airline industry is highly cost-driven creating an extremely competitive environment in which to operate. The majority of customers prefer an inexpensive and hassle-free airline experience; for those business customers who previously paid for the extra features, such as first class, the ability to reduce costs has become more important causing them to consider finding lower priced business class seats or flying coach instead. This trend is referenced in Exhibit 1. The airlines which have focused on building their business model to provide a unique or exceptional flight experience in…

    • 5206 Words
    • 21 Pages
    Best Essays
  • Best Essays

    Boeing Report

    • 2380 Words
    • 10 Pages

    Since the First Flight of Wright brothers back in 1903 no one could ever imagine how fast the aviation industry would change and new innovations will be made with in the next decades to come. Over the past decades, innovation has totally changed the face of aviation industry and Boeing is one of the main stakeholders in this race today. Boeing has been in the production of commercial jetliners for more than 40 years and since its merger with McDonnell Douglas in 1997, it has gained a 70 year heritage in the leadership of commercial aviation. In this report we will discuss how effectively Boeing has mastered the art of implementing an effective innovative strategy and managed its new and intriguing discoveries to make the world of aviation faster, slicker and most importantly efficient. Furthermore, the report will in depth analyze how Boeing has protected its innovations and devised an efficient intellectual property strategy…

    • 2380 Words
    • 10 Pages
    Best Essays
  • Satisfactory Essays

    Boeing vs. Airbus

    • 467 Words
    • 2 Pages

    Issues the 787 will address: Bargaining power of the airlines that place huge orders and the competitive rivalry between Boeing and Airbus have the largest impact on profitability in the aircraft industry. With the introduction of the 787 aircraft,…

    • 467 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    The Boeing 747 allowed more people to travel and at cheaper rates while also being the catalyst in making airports bigger. The ‘Queen of the Skies’ has also helped create thousands of jobs by being responsible of the creating of one of the biggest manufacturing buildings in the world. The Boeing 747 has helped allow people travel the world and shape society in our ability to travel the world with comfort. When this aircraft was first made, it was originally pushed to reduce airport traffic, but it has reshaped the way we travel…

    • 1480 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    With a goal to restore its leadership role in the airline industry, Boeing launched the all-new 787 aircraft project. However, the likelihood of Boeing’s success is uncertain due to numerous threats from the market.…

    • 1134 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Qantas have taken advantage of new models of planes that have a greater capacity and are more efficient such as the new A380 Airbus generates half the noise, uses less fuel and carries up to 900 passengers which is much more than the 747. Development of in-flight entertainment systems and seating have made travel more comfortable and consequently entice to customers to select Qantas over competing airlines. Therefore through Qantas use of technology they have managed to reduce costs and improve profitability as well as enticing consumers to choose Qantas over competitors through improved…

    • 1145 Words
    • 5 Pages
    Good Essays
  • Best Essays

    Boeing with an intention of creating additional value to its customers and their passengers by developing an innovative aircraft launched the program of 787 Dreamliner in 2003. Boeing’s value creation strategy for the passengers was to reduce the time of journey and make their travel experience better by re-designing the aircraft and offering new comforts. Dreamliner 787 is designed with some advanced features like it is made of 50% of composite material, light weight, nonstop flights between any pair of cities without any hauls in travel (Zimmerman & S.Tang, 2009).…

    • 1572 Words
    • 5 Pages
    Best Essays
  • Powerful Essays

    3.1 Competition from Airbus, with its increase in market share through the 1990’s to market share leader in 2003 (Hoiness, 2006), led Boeing to decide that a mid-sized, long range aircraft was required for current and emerging markets. Boeing committed to a new aircraft line, the 787 ‘Dreamliner’ (Hoiness, 2006). A significant technology advance to carbon fibre composite fuselage and wing construction with advanced engine technology would aim to reduce fuel burn by 20%, and would provide a better operational experience for airlines and their customers (Boeing Aircraft Corporation, 2014).…

    • 1209 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    This is a case about three different companies dedicated to the manufacturing of aircrafts. Those three major companies are: Boeing, Airbus Industry and McDonnell Douglas; each of one was struggling to produce enough aircraft to satisfy a seemingly unquenchable need for passenger and freight transport around the world, developed in this form many kinds of aircrafts in different models and styles.…

    • 1675 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    There are two major jet airplane manufacturers which are Boeing and Airbus, and both companies are trying to invent some comfortable, gorgeous, and energy saving airplanes for the airline passengers. A selective critical analysis of the effects of the Airbus’s new generation aircraft which is the Airbus A380 sets a foundation for more in-depth research. Newspapers, journals, and government documents provide an overview of the effects of Airbus A380 to aviation industry. The Airbus A380 requires most of the international airports to reconstruct its airport facilities to fit the large and heavy super-jumbo aircraft.…

    • 5059 Words
    • 21 Pages
    Powerful Essays