This website uses cookies to ensure you have the best experience. Learn more

Airbus Vs. Boeing. Essay

750 words - 3 pages

This case inspects international competition in the commercial aircraft industry.One of the disputes between the United States and European countries concerns the competition between Airbus and Boeing, the world's largest commercial aircraft manufacturers, in the market for body-wide aircraft. In the face of increasing competition from Airbus, Boeing complained that Airbus benefited from unfair subsidies and had an ability to mobilize political influence and pressures. This was not the first time when European consortium was accused of unfair competition through price-cutting or political interference.The aerospace industry combines the capital and labor requirements of heavy manufacturing with the research and development capabilities of a high technology industry. The risks involved in launching a new aircraft are heavy. Also, aircraft manufacturers need a complete family of aircraft to make an impact in the market. The launch of a new plane involves development costs running into billions of dollars. From the time of conception to delivery, it takes several years. Therefore, entry barriers are high. Airbus became Boeing's main competitor in the global aircraft industry. Organized as a consortium, without a corporate structure, Airbus has come a long way since its inception about 30 years back. The great advantage that Airbus has over the competition is government subsidies allowing Airbus to operate in the red. Thus, Airbus can afford to develop new technologies without having to worry about passing on the costs to the customers and can price their aircraft very competitively to lure away airlines from Boeing. It would be virtually impossible for Airbus to become a viable competitor without subsidies since the prices that Airbus was offering to its buyers would not cover its high launch costs.In the mid 1960s, the national aerospace industries in Europe were struggling and on the verge of becoming unviable. Britain, France and Germany wanted to do something quickly to salvage their national pride. As a result, Airbus Industries is a consortium backed by the British, French, German and Spanish governments. According to the case, nearly all airline companies, except for those in the Untied States, were owned by governments. Moreover, historically Great Britain and France were concerned about the competence of their high-tech industries and financed the development and subsidized the production of particular aircraft designs aimed...

Find Another Essay On Airbus vs. Boeing.

Accounting and Reporting Criteria for Boeing and Airbus

1228 words - 5 pages . Boeing and Airbus are two such companies facing these problems. This report will discuss the two companies, the accounting criteria of both, and the steps being made to a joint board and set of standards.Boeing and AirbusAt the end of the twentieth century, seven companies that manufactured passenger planes, helicopters, warbirds and missiles, satellites and spacecraft, merged to become one single enterprise- Boeing. Today, Boeing is the world's

Boeing v. Airbus: Subsidy Dogflight Essay

1732 words - 7 pages For several decades the commercial airline manufacturing industry has been dominated by two major companies: Boeing and Airbus. There are a number of smaller aeronautical firms like Lockheed but none capable of building the large passenger planes that cost billions of dollars to develop and sell for hundreds of millions of dollars each. Because of these high costs, there is serious barrier to entry to any new competition and significant first

Boeing And McDonnell Douglas Response To Competition From Airbus Industries

772 words - 3 pages Subject: Boeing and McDonnell Douglas response to Competition from Airbus Industries My analysis of the case of Boeing, McDonnell Douglas, an Airbus Industries revealed and ever more difficult trade environment resulting from unfair government support from the European conglomerate, thereby giving Airbus an unfair competitive edge from a pricing standpoint. The only reasonable way to fight off Airbus would be a merger of

Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas

1681 words - 7 pages 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.Airbus is a consortium of European aircraft

S.W.O.T. Analysis of Boeing Corp

1943 words - 8 pages aerospace company to second place behind the European company Airbus. Analysis showed that Boeing was having quality issues, expensive labor, and were not responsive to immediate demands from customers. Through a process such as SWOT a strategic direction change was proposed to allow outsourcing of many of the parts and sections of an airplane. Chuck Agne, the director for Boeing's Integrated Defense System estimates that "about 65-70% of the

Management Planning Paper

1619 words - 6 pages -Statement---Vision.htm Davies, A., (2012). Battle of the Jumbo Jets: Airbus A380 Vs. Boeing 747-8I. Retrieved December 12, 2012 from http://www.businessinsider.com/airbus-a380-v-boeing-747-8i-breakdown-2012-9?op=1 Http://www.airport-supplier.com/supplier/Boeing/ Retrieved December 17, 2012. Paur, P., (2012). NTSB urges action after engine failures in new Boeing 787, 747 Airliners. Retrieved December 12, 2012 from http://www.wired.com/autopia/2012/09

Emirates Airline Overview

1715 words - 7 pages In March of 1985, Emirates airlines was created with support from Dubai's royal family. With an investment of 10 million US dollars, Emirates was able to lease a Boeing 737-300 and an Airbus 300B4 for two years ( The Emirates Group). The airline commenced its operations with a new route from Dubai to Karachi on October 25th 1987 and was once again assisted by the royal family who purchased Boeing 727s. Due to very limited

Macroecons Research Paper

2782 words - 12 pages . Chris Yates. (2012, February 8). Airbus to inspect all A380 superjumbos for wing cracks[Graph]. BBC News. Retrieved from http://www.bbc.co.uk/news/business-16942361 Fiorano. (n.d). Comparing Point-to Point with Hub-and-Spoke Topology[Graphs]. Retrieved from http://www.fiorano.com/products/Enterprise-Messaging/JMS/FioranoMQ-java-message-service-architecture.php Javier. (2013, September). Airbus vs Boeing, Comparisons of Market Forecasts (2013)[Web

The Airbus A380: A Revolutionary Plane

2963 words - 12 pages of different planes, 18 inches wide a standard among Airbus. Also, in first and business classes lie-flat beds are provided. Airbus A380 vs. Boeing 747-400 The chart below shows the differences between the Airbus A380 and the Boeing 747-400. Airbus A380 Boeing 747-400 Crew 2 2 Passengers (three-class arrangement) 555 416 Seating configuration Two decks, two aisles per deck Two decks, two aisles main deck Wingspan 79.8 m (261 ft 10 in) 64.4

Qantas International: Analysis of the External Environment

2163 words - 9 pages , Singapore Airways: 1972 Singapore, Changi Airbus A330-300, Airbus A340-500, Airbus A380, Boeing 747-400, Boeing 777-200, Boeing 777-300 Strategy Singapore Airlines have a dual strategy that balances purposes that are traditionally viewed as incompatible opposites. The Harvard Business Review describes this as being “a premium service provider and a cost leader”, (Heracleous & Wirtz, 2010). Combining product differentiation through

Cathay Pacific Airlines

4333 words - 17 pages new Airbus A380. Around the same time, the company will also receive the first of new Boeing 777-300ERs. SIA has a youngest fleet of aircrafts. The company operates 90 passenger aircraft with an average age of its fleet is about six years. The company has also recently taken the delivery of its 61st Boeing 777 aircraft, making the airline the possessor of the youngest fleet of aircrafts. A young fleet of aircrafts is of immense importance in the

Similar Essays

Boeing Vs Airbus: The Ongoing Wto Dispute

3643 words - 15 pages Boeing vs Airbus: The Ongoing WTO DisputeIntroductionFor decades there has been a simmering dispute between the US and the EU over subsidies and other forms of aid for the world's two dominant makers of civil aircraft, Boeing and Airbus. Both sides accuse the other of distorting competition within the sector by receiving various forms of aid. Both Airbus and Boeing calculate that total subsidies running into the double digit billions have been

Boeing Vs Airbus Essay

799 words - 4 pages the other case, Airbus occupied 16% of the world’s existing fleet in 1992 and only 972 commercial aircraft had been delivered by the end of 1992. These included 37.2% of short-to-medium range aircrafts (A320 & A321) and 62.3% of medium-to-long range aircrafts (A300 & A310) without any long range aircrafts. As a result, Boeing had occupied 3.5 times larger aviation market and delivered approximately 7 times more aircraft than Airbus by the end of

Airbus Vs Boeing Essay

2727 words - 11 pages Airbus and Boeing compete in manufacturing large commercial airliners. Airbus' product line includes the A330, A340, and the mammoth A380 which first flew in April 2005. In 2005, Airbus received orders for 1111 aircraft and earned revenue of €22.3 billion. Boeing's product line includes the 737, 777, and 747. In 2005, Boeing received orders for 1031 aircraft and earned revenue of $22.7 billion from sale of commercial aircraft.Until 2001

Accounting Reporting Criteria: Boeing And Airbus

1231 words - 5 pages Every business conforms to accounting reporting criteria. In the U.S., companies follow the Financial Accounting Standards Board. Elsewhere, companies follow the International Accounting Standards Board. While both of these boards use many of the same principles, they have many differences as well. With many companies now going global, the difficulty translating these criteria is growing. Boeing and Airbus are two such companies facing these