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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 .
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INTRODUCTION of AIRBUS Formed By Combining Of Aerospatiale Of France Detuce Airbus Of Germany, The Spanish Company CASA, British Aerospace. Have Merged To Form Eads ( European Aeronautic Defence And Space Company). INTRODUCTIONBOEING An American Multinational Company Aerospace And Defence Corporation Founded In 1916. Undertook A Serious Of Strategic Mergers And Acquisition To Become The Worlds Largest Company. Also Manufacture Many Kind Of Jets Such As Boeing 737, 787. Specially, Boeing 787-8 Is Produced With Fuel-efficient Engine To Complete With A380. THEIR VISIONS THE AIRBUS INDUSTRIES Meet The Eco-efficiency And Safest Goal Meet Passenger And Market Demands. Respect All Aspect Of The Environment. Cheaper, Greener And More Fun. THE BOEING COMPANY Safest, highest quality aeroplane Taking new technologies and applying them Refers to investing in long term growth to beat airbus COMPETITION Competition By Product Competition By Outsourcing Competition Through Use Of Technology Competition Through Provision Of Engine Choice By Range Example: Boeing 737 Series V/S Airbus A320 By Passenger Example: Boeing 787-8 V/S Airbus A380 Series THE AIRBUS INDUSTRY Outsource To Other Companies Across Europe. Opened An Assembly Plant In Tianjin, China For Production Of Its A320 Series Airlines THE BOEING COMPANY Has Offered Longstanding With Japanese Supplier. Outsourcing To Australia, China And Italy. Product, A320, A350.....Especially A380- Biggest Plane In The World. COMPETITION BY TECHNOLOGY Applying New Materials Applying New Auto-technology ( Automatic The Flight Engineers Function Navigator System....) Applying New Power-source ( Bio Fuels...) COMPETITION THROUGH PROVISION OF ENGINE CHOICE Prefer To Have A Choice Of Atleast Two Engines From The Major Manufacturers. Manufacturers Prefer To Be Single Source For Each Kind Of Airplane SUMMARY Focus On Applying New Technologies And Protecting Environments Competing In Every Fields Both Company Get Supports From The Government
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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.
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