2. Boeing VS Airbus 2 Abstract The demand facing aircraft manufacturers for new orders is in principal derived fromthe perceived future demand for commercial aviation. Several key external economic factorsare likely to outline demand for new aircraft. These factors are accessed from the perspectiveof decision makers in the airline industry, Airbus and Boeing, in this paper. Also analysed inthe paper are the relevant strategies employed by both airliner makers to manipulate thisfactors or manoeuvre around them in order to survive in the market. The relevant theories ofstrategic management are also analysed in the paper. The paper is also divided into twodistinct parts one tackling on contemporary business issues and strategic management.
3. Boeing VS Airbus 3 Part A; Contemporary business issues Introduction Wilbur and Orville Wright, in Ohio, made the initial successful flights in 1903, andtwo years later, they assembled a well-controlled aircraft1. This original success in thecenturies-long reality of flight cleared the way for the start of the road to the emergence ofthe aircraft commerce; which is the United States’ most profitable market and industry,having generated about 140 billion dollars in sales in 1999, as well as 62 billion dollars inexports to other countries2. An essential section of this industry entails the commercialaircraft manufacturers. Consequently, it is very important to re-examine the constituents andthe past of this industry to analyze the effects various public policies and economic factorscould have on the producers in addition to the buyers of aircrafts. A Brief History In 1903, the Wright brothers thrived in flying the primary plane, Kitty Hawk,establishing the onset of the aviation industry3. Previously, the community did not take onaircrafts as reliable ways of transport owing to the insight that it was unsafe.
Bibliography: 1. Boyd, Devani L, “Safety and Profits in the Airline Industry.” The Journal of Industrial Economics, 34 (3): 305-318, 2000 2. Col, William F. “Industry Studies: Aircraft,” The Industrial College of the Armed Forces. http://www.ndu.edu/icaf/industry/2000/aircraft/aircraft.htm, 2005. 3. Hartley, K, “The Learning Curve and Its Application to the Aircraft Industry.” The Journal of Industrial Economics, 13 (2): 122-128, 1965 4. Hayward, Keith. “Airbus: Twenty Years of European Collaboration.” International Affairs, 64 (1): 11-26, 1988. 5. Heppenheimer, T. A. “The U.S. Aircraft Industry – An Overview,” U.S. Centennial of Flight Commission. http://www.centennialofflight.gov/essay/Aerospace/AeroOV1.htm. 6. Golich, Vicki L, “From Competition to Collaboration: The Challenge of Commercial- Class Aircraft Manufacturing.” International Organization, 46 (4): 899 934, 1992 7. Landler, Mark, “Airbus Edge in 05 Sales Comes With an Asterisk.” The New York Times. January 18, 2006 24. Boeing VS Airbus 24 8. Milner, Helen V., and Yoffie, David B. “Between free trade and protectionism: strategic trade policy and the theory of corporate trade demands.” International Organization, 43 (2): 239-272. 1989 9. No Author.. “Current Market Outlook.” Boeing Corporation. http://www.boeing.com/ commercial/cmo/pdf/cmo2005_OutlookReport.pdf. 2005 10. Pavcnik, Nina.. “Trade Disputes in the Commercial Aircraft Industry.” Blackwell Publishers. United Kingdom. 2002 11. Shokralla, Shad H.. “Boeing 777 Case Study.” Synthesis Coalition. 1997 12. Simonson, G. R.. “The Demand for Aircraft and Aircraft Industry, 1907-1958.” The Journal of Economic History, 20 (3): 361-382. 1960 13. Sturmey, S. G.. “Cost Curves and Pricing in Aircraft Production.” The Economic Journal, 74 (296): 954-982. 1964 Appendix B: Case Studies and theories 1. Airbus Industries 2. Boeing International company 3. Virgin Atlantic 4. Porter 5 factors 5. Pestel analysis 6. the hub and spoke values 7. point to-point idea 25. Boeing VS Airbus 25