Boeing Vs Airbus

The commercial airplane manufacturing industry is dominated by two large players, Boeing and Airbus. They operate in a very competitive environment and the strategies of one strongly impact the business of the other.

For almost 40 years, the Boeing 747 or Jumbo Jet, the largest airplane in the world, has enjoyed a monopoly and has brought in large profits for Boeing. Roughly 10 years ago, Airbus decided to look into to the possibility of manufacturing an even larger and more efficient plane.

Your assignment is to write up a case study on Airbus' decision to product what is now called the Airbus 380. In your study include the international competitive environment, the need (or lack of) for a super Jumbo, and the implications on the international competitiveness of the two products (747 and 380), the two companies, and the international marketing strategies that the two companies have employed so far.

The completed paper is due for submission during the last week of class. The expected length is about 10 pages. This may be done as a group assignment with not more than three

members per group. Students are welcome to work alone on the paper, if they so desire. If

done alone a shorter paper with lesser detail is acceptable.

BOEING

Boeing came into being in the year 1916when the American timber merchant William E. Boeing founded Aero Products Company shortly after he and U.S. Navy officer developed a single-engine, two-seat seaplane called the B&W. In 1917 they renamed it Boeing Airplane Company which had built planes for the Navy during World War I.

The Boeing Company developed to become a single enterprise in the end of the 20th Century. Its workers built passenger planes, helicopters, etc. Then later it started to develop commercial planes in 1955. After being a new major player in the commercial airliner business, Boeing was quick to bend to customer's desires. It then started to sell to Australian airlines like the Qantas. Most of the later 707s featured the more fuel efficient and quieter JT3D turbofan engines and flaps on the leading edge of the wings to improve takeoff and landing performance.

As the 1960s drew to a close, the exponential growth in air travel led to the 707 being a victim of its own success. The 707 was now too small to handle the increased passenger densities on the routes for which it was designed. Stretching the fuselage was not a viable option because the installation of larger, more powerful engines would in turn need a larger undercarriage, which was not feasible given the design's limited ground clearance. Boeing's answer to the problem was the first twin aisle airliner - the 747. The 707's first-generation engine technology was also rapidly becoming obsolete in the areas of noise and fuel economy.

THE AIRBUS

History

Since Boeing enjoyed a monopoly, Airbus of Europe decided to challenge the American company which had dominated the skies. But after 35 years of establishment it has now become one of the world’s leading aircraft manufacturers. Four countries, UK, Spain, France and Germany teamed up to establish the Airbus and to challenge the American dominated skies.

The Present

The Airbus 380 is a double-deck, four-engined airliner. It is now the largest passenger airliner in the world. Its cabin has a 50% more floor space more than the Boeing 747 and provides seating for 555 people