Airbus and Boeing have been involved in a fierce duopoly in the large jet airliner market since the 1990s. Airbus began as a European consortium while the American Boeing absorbed its former arch-rival, McDonnell Douglas in a 1997 merger
Manufacturers like Lockheed Martin, Convair and Fairchild Aircraft in the United States and British Aerospace and Fokker in Europe withdrew from the market as they were no longer in a position to compete effectively
Over the years, competition has been intense; each company regularly accuses the other of receiving unfair state aid from their respective governments.
Based on http://www.slideshare.net/arjunparekh/duopoly-boeing-versus-airbus?qid=90919b4f-b341-4d82-8f75-3474f9f15e57&v=&b=&from_search=16
The presentation explores how the Duopoly of Boeing & Airbus rules the Aircraft Manufacturing Market, The competitive Rivalry among these two companies, Porter's Five Forces acting on this industry
In this presentation there is analysis for Boeing, history, sales, supply side analysis, Commercial Aircraft Demand Determinants, Market Drivers, Order Comparison, Delivery Comparison, Current Strategy
The presentation explores how the Duopoly of Boeing & Airbus rules the Aircraft Manufacturing Market, The competitive Rivalry among these two companies, Porter's Five Forces acting on this industry
In this presentation there is analysis for Boeing, history, sales, supply side analysis, Commercial Aircraft Demand Determinants, Market Drivers, Order Comparison, Delivery Comparison, Current Strategy
Global Operations and Supply Chain Management: Airbus vs. Boeing Final Assig...Jamar Johnson
Final Assignment performed by Jamar Johnson and IE Business School classmates for our Global Operations and Supply Chain Management course. The class was taught by Professor and Associate Dean of IE Business School, Luis Solis.
In what way can we see that JetBlue made an entrance in an industry from the old mass production paradigm and still were able to take advantage of the ideas of the new ICT paradigm? How JetBlue make flying easier for a whole new customer segment (the low-cost segment) through focus on efficiency and new technology.
Global Operations and Supply Chain Management: Airbus vs. Boeing Final Assig...Jamar Johnson
Final Assignment performed by Jamar Johnson and IE Business School classmates for our Global Operations and Supply Chain Management course. The class was taught by Professor and Associate Dean of IE Business School, Luis Solis.
In what way can we see that JetBlue made an entrance in an industry from the old mass production paradigm and still were able to take advantage of the ideas of the new ICT paradigm? How JetBlue make flying easier for a whole new customer segment (the low-cost segment) through focus on efficiency and new technology.
Airbus and BoeingA Comparison of Two Airline and Aerospace Rival.docxgalerussel59292
Airbus and Boeing
A Comparison of Two Airline and Aerospace Rivals
PREPARED FOR:
BUSINESS COMMUNICATION CLASS
PREPARED BY:
JOSEPH D’AMATO
BUSINESS INSTRUCTOR
September 30, 2014
CONTENTS
Airbus and Boeing
A Comparison of Two Airline and Aerospace Rivals
EXECUTIVE SUMMARY…………………………………………………………….iii
Introduction……………………………………………………………………....1
Differing Approaches to Manufacturing…………………………….1
Competitive Tactics Backfire for Boeing…………………………….2
Opposing Views of the Future……………………………………………..3
Market Gambles—Both Firms “Bet the Company”…………………4
Reference List
ii
EXECUTIVE SUMMARY
Boeing has been defined by its sheer technical bravado—and at times by its almost willful disregard for financial realities. The Seattle company designed the B-52 in a single weekend and launched the 747 jumbo jet in spite of the many observers who declared it financial suicide. Boeing is the world’s largest aerospace company and the largest exporter in the United States. It has built some 85 percent of the world’s jetliners and has dominated commercial aviation since the 1950s. But in 1999, the once unthinkable happened: rival Airbus sold twice as many planes as Boeing. This report is a comparison of these two competitors.
iii
Airbus and Boeing
A Comparison of Two Airline and Aerospace Rivals
Introduction
Boeing has been defined by its sheer technical bravado—and at times by its almost willful disregard for financial realities. The Seattle company designed the B-52 in a single weekend and launched the 747 jumbo jet in spite of the many observers who declared it financial suicide. Boeing is the world’s largest aerospace company and the largest exporter in the United States. It has built some 85 percent of the world’s jetliners and has dominated commercial aviation since the 1950s. But in 1999, the once unthinkable happened: rival Airbus sold twice as many planes as Boeing.
Airbus was founded in 1970 as a consortium of four European partners with homes in Great Britain, Germany, France, and Spain. Airbus would never have gotten off the ground without subsidies from the partners’ governments. In 2001, confident that Airbus could finally stand on its own, the partners turned it into a single private company. Like Boeing, Airbus manufactures a full fleet of planes. Unlike Boeing, it has no jumbo jet. As a result, when it approaches an airline with a package deal, it has no big plane to clinch the sale.
Differing Approaches to Manufacturing
Airbus and Boeing build their planes differently. At Airbus, large airplane components, such as wings, cockpits, engines, and landing gear, are produced by suppliers all over the world and flown in giant cargo jets to a final assembly building in Toulouse, France. There, a handful of employees operating giant machines snap the large plane sections together. The finished aircraft are sold by Airbus Industry, a sales and marketing joint .
Airbus & Boeing Activities in new Development TechnologySami El Khatib
Technological advancement is the premise for competition in the aeronautic trade, so that this industry is the first in progressing science and technology. Among the world's biggest assembling commercial industries in terms quality of item, the airplane business is portrayed by a moderately little number of huge firms and various global organizations at each level. Airbus and Boeing are the world leaders in aircraft industry and a great case on how technology development and innovation can be processed to compete. Both companies are dominating the global market through their skilled teams, brand image and continuous innovation.
The global aerospace market is worth more than over nine trillion US dollars, with main markets in United States, France, Germany, and the UK. This industry’s largest aerospace and defense manufacturers are Boeing and Airbus. For almost a century, the pioneering companies that make-up Boeing have been at the forefront of innovation in aviation. Boeing enjoyed monopoly in aviation until Airbus was born was 1970. The Airbus-Boeing competition is marked as duopoly in the large jet airliner market since 1990s.
This study is commissioned to examine the global market, innovation, & patent filing trends by Airbus and Boeing in the last five years i.e., since 2017 till March 2022.
The annual aircraft deliveries by both Airbus and Boeing in FY2021 show a rise by 7.9% and 116.6% respectively from FY2020. Though, Airbus is the winner in terms of number of aircraft orders and deliveries in FY2021. There is also a rise in consolidated revenue in FY 2021 from previous year for both Airbus and Boeing by approx. 4% and 7% respectively. However, there is a slight dip in R&D expenditure in 2021 by approximately 4% and 9% respectively for Airbus and Boeing maybe due to COVID-19 crisis. In FY2021, for Airbus, revenue mainly poured in from Europe followed by Asia-Pacific regions; and for Boeing, its major customers were from North America followed by Europe. The world airliner census data for FY2021 represents that there are a greater number of operational aircrafts by Boeing than that for Airbus. Boeing accounted for 8,907,948 flights during the year, whereas Airbus edged slightly ahead with 9,401,161 flights scheduled for the year 2021. While Airbus is the overall winner in this category, Boeing was behind far more widebody flights with 1,103,294 flights compared to 645,220 with Airbus aircraft.
In terms of patent filing trend, Boeing is the winner with 14,994 applications (and 5,228 patent families) filed whereas Airbus has filed 11,440 applications (and 3,713 patent families) between January 2017, and April 2022. The filed patents have been categorized into 60 technological domains related to aerospace. The number of inventors for Boeing is more than double the number for Airbus. The number of withdrawn applications is higher in case of Airbus as compared to Boeing. The number of rejections during prosecution is also higher for Airbus as compared to Boeing.
Finally, in terms of design, safety, and passenger experience, Airbus and Boeing have their own advantages and challenges. The report discusses some of the aspects based on which a comparison has been made.
The term offshore company or offshore corporation is used in at least two distinct and different ways. An offshore company may be a reference to:
a corporation or (sometimes) other type of legal entity which is incorporated or registered in an offshore financial centre or "tax haven"; or
a company or corporate group (or sometimes a division thereof) which engages in offshoring manufacturing or business services.
Characteristics of offshore companies
They are broadly not subject to taxation in their home jurisdiction.
The corporate regime will be designed to promote business flexibility.
Regulation of corporate activities will normally be lighter than in a developed country.
Classifying offshore companies:
Companies which are exempt from taxation in their jurisdiction of registration provided that they do not undertake business with persons resident in that jurisdiction (IBCs).
Offshore jurisdictions which simply do not impose any form of taxation on companies, and so their companies are de facto tax exempt.
Interpersonal trust and trust to social institutions in RussiaRuhull
An interpersonal relationship is a strong, deep, or close association or acquaintance between two or more people that may range in duration from brief to enduring.
This association may be based on:
inference,
love,
solidarity,
regular business interactions,
some other type of social commitment.
Interpersonal relationships are formed in the context of social, cultural and other influences.
The context can vary from family or kinship relations, friendship, marriage, relations with associates, work, clubs, neighborhoods, and places of worship.
They may be regulated by law, custom, or mutual agreement, and are the basis of social groups and society as a whole.
Based on the idea of the need for state regulation of the economy. No more self-adjustments
For the prosperity of the economy:
All have to spend as much money as possible;
The state should stimulate aggregate demand growth even by the budget deficit, debt and unsecured issue of money.
Organizational and Production structure of a FirmRuhull
Organizational structure – the possible ways in which a firm can organize itself, for example, by function, byproduct or service
The word structure implies organization. People who work in an organization are grouped so that their efforts an be channeled for maximum efficiency.
Organizations can be structured in an infinite variety of ways, ranging from highly complex to extremely simple.
Aristotle. His teaching. Ontology, Gnosiology (epistemology), Ethics, PoliticsRuhull
Aristotle was born in 384 BC in Stagira (Macedonia)
His father was physician to the king of Macedonia.
When he was 7, he went to study at Plato’s Academy.
Began as a student, became a researcher and finally a teacher.
Was considered one of Plato’s best students.
Plato died and willed the Academy to his nephew.
Aristotle left and founded the Lyceum.
342 tutored the Macedonian prince, Alexander; little discernible influence
335 returned to Athens, where he wrote most of his works;
Died in Euboea in 322.
The historical significance of Aristotle
Ontology, Gnosiology (epistemology), Ethics, Politics
Global financial and economic crisis and its influence on national economy of...Ruhull
For an overall estimation of the current crisis, we should highlight its three important characteristics:
This crisis itself represents the first world crisis of global capitalism, which happened after the collapse of the world socialistic system;
The current crisis serves as a crisis of the global liberalism model, pointing to the imperfection of modern economic system;
The current crisis can be considered as a turning point in the global economic system and in national economic models, as well as in economic science.
All these features give it the enormity and the increased level of risks
"Iron cage of capitalism” of Weber. evidences of rationalization in modern Ru...Ruhull
Rationalization (sociology) - refers to the replacement of traditions, values, and emotions as motivators for behavior in society with rational, calculated ones;
For example, the implementation of bureaucracies in government is a kind of rationalization, as is the construction of high-efficiency living spaces in architecture and urban planning;
One of the reasons as to why rationalization of a culture takes place could be due to the process of Globalization.
Organizational culture and its influence on project managementRuhull
Within any organization, successful project management is contextual. What that means is that the organization itself matters:
its culture;
its structure;
and its strategy. Each play an integral part and together they create the environment in which a project will flourish or founder.
Issues that affect a project can vary widely from company to company.
Contextual issues provide the backdrop around which project activities must operate, so understanding what is beneath these issues truly contributes to understanding how to manage projects.
Nuclear power, Definition of nuclear energy & how does it work, Main advantages of developing nuclear power plants, Advanced technologies for safe future
Cure, how placebo works, placebo, placebo effect, What is the placebo effect, Mechanism of the placebo effect, How does the placebo effect works, How are placebos used
Gazprom Neft, History of Gazprom Neft, Company profile of Gazprom Neft, International projects of Gazprom Neft, Board of directors of Gazprom Neft, Management board of Gazprom Neft, Shares of Gazprom Neft, Data of Gazprom Neft, SWOT-analysis of Gazprom Neft, Business project of Gazprom Neft
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Acetabularia Information For Class 9 .docxvaibhavrinwa19
Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
3. Background
Airbus and Boeing have been involved in a fierce duopoly in the large jet
airliner market since the 1990s. Airbus began as a European consortium
while the American Boeing absorbed its former arch-rival, McDonnell
Douglas in a 1997 merger
Manufacturers like Lockheed Martin, Convair and Fairchild Aircraft in the
United States and British Aerospace and Fokker in Europe withdrew from
the market as they were no longer in a position to compete effectively
Over the years, competition has been intense; each company regularly
accuses the other of receiving unfair state aid from their respective
governments.
4. Market Share
• The competition between Airbus and Boeing has been characterized as a duopoly in the
large jet airline market since the 1990s.
• In the 10 years from 2004 to 2013, Airbus has received 8,933 orders while delivering 4,824,
and Boeing has received 8,428 orders while delivering 4,458.
• In the fiscal year of 2010,Boeing generated almost 64.31 billion US dollar in revenue
compare to 45.7 billion euros of Airbus.
• And in 2014 Boeing manage to collect 90.8 Billion dollar revenue and Airbus collected
around 60 billion euros.
7. Reasons for Duopoly
Prime Reason: Barriers to Entry
Barriers to entry exist for a number of reasons, but the end result is that there is
limited entry into a market or industry because the hurdles that must be overcome are
great, and therefore firms that are already part of the industry or market have an
advantage and are insulated from competition from new entrants.
• Financing: The cost to design, prototype, build, and deliver a new LCA is immense.
Boeing 777 the development costs were estimated to be $10‐12 billon. The new
Airbus A380 had development costs of €12 billion ($16.2 billion).
• Engineering: Aircraft of the size produced by Boeing and Airbus require significant
engineering experience and know‐how in order to successfully design, test, and
produce a viable jetliner. Boeing has only designed eight planes from scratch since
they started building jetliners in 1955. Airbus has only designed four since 1969.
8. Barriers to Entry cont’d
• Technology: Commercial jetliners are behind military aircraft and space flight in
terms of the volume of technological developments. It is how quickly, efficiently,
quietly, comfortably, and safely a plane reaches its destination that matters which
can be achieved only through technological advancement. New entrants can only
expect to be competitive if they are able to produce and bring to market technology
that improves upon the existing jetliners.
• Production & Logistics: Every jetliner contains lakhs of parts, ranging in size from
rivets to seats to overhead compartments. These components must be
manufactured and brought together into one aircraft in one place. The primary
reason for the collapse of Douglas Aircraft was their inability to manage their supply
chain and bring together airplanes at a reasonable cost Boeing’s trouble in the late
1980’s was majorly due to improper supply chain.
10. Threat of New Entrants : Low
• Humongous costs involved in setting up R&D.
• Scarcity of Resources (Technological resources).
• Capital intensive industry.
• High loyalty to existing brands. i.e., Airbus and Boeing
• Profits start to realize after a long time.
Bargaining Power of Buyers: Low
• Limited choice for buyers as Boeing & Airbus together, hold nearly the entire airplane market.
• The cost involved in switching airplanes (company) is very high due to aftermarket support/service
costs.
Threat of Substitutes : Low
• No alternative for quick long distance journey.
• Future requirements of aircrafts will only increase demand.
• However for regional carriers focused on short distance transportation, threat is little bit higher. They
must focus on convenience, personal preference, time and money
Porter’s Five Forces for Boeing Vs. Airbus (Airplane Industry)
11. Porter’s Five Forces for Boeing Vs. Airbus (Airplane Industry)
Bargaining Power of Suppliers : High
• The airplane manufacture business is majorly dominated by Boeing & Airbus. So there’s no cutthroat
competition and hence these companies have upper hand over the buyers.
• Also, the chances of carriers, opting for vertical integration are very unlikely.
Competitive Rivalry: High
• Bidding for a limited, but very high value of contracts (aircraft orders) witness a very cutthroat
competition between these two rivals
• Fuel efficient engines, cheaper maintenance, prompt services, pricing, etc. are the factors on which
these companies compete.
12. Strategies
• Airbus’ Differentiation Strategy – ‘Hub-and-Spoke-Concept’
• Boeing’s Differentiation Strategy – ‘Direct Point-to-Point-Traffic’
• In duopolistic markets companies are assumed to avoid direct price wars and try to use
non-price methods to differentiate their products such as engaging in technological
‘leapfrogging’ by bypassing each others’ inventions.
• So the competitive strategy used by Boeing & Airbus, is totally based on product
differentiation concept. Differentiating factors are:
1. Shape
2. Fuel Efficiency
3. Engine
4. Internal Design / Facilities
5. Cockpit Commonality
13. Shape
• The 787 Dreamliner, developed by
Boeing, is a long-range, midsized, wide-
body, twin-engine passenger airliner.
• In 2006 Airbus began to consider a wider
body, a larger wing, more powerful
engines, a higher cruise speed and many
other changes to satisfy the airlines. So,
Airbus presented the A350 XWB with
entirely new design.
• The new wider Airbus A350 XWB body
will enable the plane to accommodate
slightly wider economy seats than its
rival. The new design maximizes usable
volume.
15. Fuel Efficiency
• With the price of oil continuing to rise,
airlines are in continuous pressure in
terms of their fuel costs. This in turn it has
become an incentive for the aircraft
manufacturers to develop the most fuel
efficient planes possible.
• Airbus originally had picked up the banner
of fuel efficiency as a means of gaining an
edge over Boeing. As Airbus matured and
gained success, they became risk‐averse.
Unfortunately, fuel efficiency is a relative
to time. That which was considered ‘fuel
efficient’ a decade ago may now be a ‘gas
guzzler’ today.
16. Engine
• As the era progressed, innovations in
engine design earned a substantial
chunk of competitive advantage.
• Boeing with it’s high‐bypass
turbofan engines gained an edge
over Airbus, after losing out to
Airbus for a short while.
17. Internal Design / Facilities
When airlines can choose between
more seats and a gym/cocktail lounge,
out goes the gym and cocktail lounge.
Boeing focused on more seats in 787
Dreamliner while Airbus focused on
more luxurious amenities in A380.
Carriers ordered 159 A380s, and
almost twice as many 787s.
18. Cockpit Commonality
• In 1978 when Airbus was preparing to
launch the development of a new LCA, it
had only one product, the A300. At the
same period in time, Boeing had a diverse
product set ranging from the 727, 737, 757,
767, and 747.
• Airbus had only two offerings so it
differentiated on the basis of cockpit
commonality. Each of Boeing’s planes had
different cockpit configurations.
• Airbus saw an opportunity to configure
common cockpits For airlines, this meant
increased flexibility and decreased
training costs.
19. Challenges to Duopoly
• The global civil aerospace
market has long been a
classic duopoly. The sector
has been dominated by
European company Airbus
and the US giant Boeing, with
only limited competition in
the regional markets.
• The Major Competitors are:
• Bombardier Cseries (Canada)
• COMAC C919 (China)
• Embraer (Brazil)
• Sukhoi Superjet 100 (Russia)
• COMAC ARJ21 (China)
20. • Bombardier Aerospace is a division of Bombardier Inc. The company
competes with Brazilian rival Embraer for the title of the third
largest aircraft manufacturer after Boeing and Airbus. It is
headquartered in Dorval, Quebec, Canada.
• Bombardier is a global transportation company that is present in over
60 countries on 5 continents. They operate two businesses: Aerospace
and Rail Transportation.
• It's high-performance aircraft and services are seen in a number of
different markets including, Business aircraft, Commercial aircraft,
Amphibious aircraft.
• Revenue generated by bombardier in year 2014 was $9.6 billion.
• Number of employees in the company were 38350 in the year 2014.
21. • Embraer S.A. is a Brazilian aerospace conglomerate that produces
commercial, military, executive and agricultural aircraft and provides
aeronautical services. It is headquartered São José dos Campos, São
Paulo State.
• The company currently competes internationally with Canadian
rival Bombardier for the title of third-largest airplane maker after
Airbus and Boeing.
• Embraer has become one of the main aircraft manufacturers in the
world by focusing on specific market segments with high growth
potential in commercial, defense, and executive aviation.
• Revenue generated in 2013 was $5.7 billion.
• Number of employees in the company were 19116 in the year 2014.
23. Outsourcing
•Airbus and Boeing increased global outsourcing to Japan, China, India, Middle East,
Eastern Europe. These are growing markets and hence profitable.
•Large Asian and middle eastern carriers are now major customers (Singapore Airlines,
Emirates)
24. Airbus Outsourcing
• New comer in Japan and China
• Difficulty getting orders from Japanese Airlines but has contracted
work with Japanese Suppliers
• Problem - Euro Vs. Dollar - Dollar weaker, manufacturing costs in Euros
but planes sold in dollars.
• China - Sales jumped from 56-219 aircrafts in 2005, overtook Boeing
• Tianjin - First assembly plant outside Europe
• Plan to expand production to India - Presence of engineering talent
• Production of A320s in China - Need to be close to large markets
• Production of aircraft parts to Maghreb - Low cost labour
25. Boeing Outsourcing
• Outsources to multiple places and producers hence parts not perfect fits.
• Complicated supply chain
• Outsourcing of new innovation not existing technology
• Outsourced wing of 787 to Japanese Heavies- Mitsubishi Heavy Industries, Fuji
Heavy Industries, Kawasaki Heavy Industries.
• Boeing lacked know-how about plane construction earlier
• Improved supply chain management by ensuring own employees on the ground
worked with suppliers
• Tiered structure of suppliers - tier 1 assembled parts made by tier 2 and 3- tier 1
did not have enough know how to assemble, Boeing forced to buy one of the tier 1
suppliers (Vought Aircraft industries) to give expertise to other suppliers
• Poor design of contractual agreement
