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 in standard three-class configuration or up to 853 people in its economy class.

The Strengths of the A380

The Airbus 380 can carry more passengers, in greater comfort, and over greater distances, than any other passenger plane including Boeing's 747. The Airbus is not just big but it is also very fuel efficient. There are other strengths and opportunities which Airbus 380 has ahead of them.

Passenger provisions

Like mentioned the space and services that the A380 offers is amazing. It’s cabins offers rooms for relaxing, bars, duty-free shops, and beauty salons. It has also announced plans to include casinos, double beds, a gymnasium and showers on its A380s.The A380 will provide more and wider seats, lower seat-distance costs and better amenities. It also has a lower cabin noise and the effects of jetlag than the Boeing 747.

At 555 passengers, the A380's seating capacity represents a 35% increase over the 747-400 in a standard three-class configuration, along with a 50% larger cabin volume вЂ" producing more space per passenger. If, however, the plane is ordered in an all-economy-class configuration, it can hold up to 853 passengers; its maximum certified carrying capacity.

Airport compatibility

The A380 was designed to fit within an 80 x 80 m airport gate[33], and can land or take off on any runway that can take a Boeing 747. However, airports used by the A380 in commercial service may need infrastructure modifications. Its large wingspan can require some taxiway and apron reconfigurations, to maintain safe separation margins when two of the aircraft pass each other. Taxiway shoulders may be required to be paved to reduce the likelihood of foreign object damage caused to (or by) the outboard engines, which overhang more than 25 m (80 ft) from the centre line of the aircraft. Any taxiway or runway bridge must be capable of supporting the A380's maximum weight. The terminal gate must be sized such that the A380's wings do not block adjacent gates, and may also provide multiple jetway bridges for simultaneous boarding on both decks. Service vehicles with lifts capable of reaching the upper deck must be obtained, as well as tractors capable of handling the A380's maximum ramp weight.

The A380 test aircraft have begun a campaign of airport compatibility testing, to verify the modifications already made at several large airports. To date, airports have been visited for compatibility testing in Bangkok, Brisbane, Chicago, DÐ"јsseldorf, Frankfurt, Hong Kong, Johannesburg, Kuala Lumpur, London, Los Angeles, Melbourne, Montreal, Munich, Mumbai, New Delhi, New York City, Seoul, Shannon, Singapore, Sydney, Tokyo, Toronto, Vancouver and Washington.

Opportunities

Orders

Fifteen

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