THE BATTLEOF

BOEING AND AIRBUS

Presented by Group 1

INTRODUCTION

The Company•An American multinational aerospace and defense corporation, founded in 1916•Undertook a series of strategic mergers and acquisitions to become the world’s largest•Also manufactured many kind of jets such as Boeing 737, 787. Specially, Boeing 747-8 is produced with fuel-efficient engine to compete with A380

INTRODUCTION

INDUSTRIES•Formed by combining of Aerospatiale of France, Deutsche Airbus of Germany, the Spanish company CASA, British Aerospace•Have merged to form EADS (European Aeronautic Defense and Space Company). Airbus has became its subsidiary in Toulouse – Blagnac•Products: A320, A350… especially A380 – biggest plane in the world

THEIR VISIONS

• Safest, highest-quality airplanes

• Taking new technologies and applying them

• Refers to investing in long-term growth to beat Airbus

THE BOEING COMPANYAIRBUS INDUSTRIES

• Meet the eco-efficiency and safest goal

• Meet passenger and market demands; respect all aspects of the environment

• Cheaper, greener and more fun

COMPETITIONS

• Competition by product• Competition by outsourcing• Competition through use of technology• Competition through provision of engine choices

COMPETITION by PRODUCTS

• By rangeExample: Boeing 737 series va Airbus A320 series

• By passengerExample: Boeing 747-8 vs Airbus A380 series

COMPETITION by OUTSOURCING

• Has offered longstanding with Japanese suppliers

• Outsourcing to Australia, China and Italy

THE BOEING COMPANY AIRBUS INDUSTRIES

• Outsourced to other companies across Europe

• Opened an assembly plant in Tianjin, China for production of its A320 series airliners

COMPETITION by TECHNOLOGY

• Applying new materials (Composite…)• Applying new auto-technonoly (automating the flight

engineer's functions, navigator system…)• Applying new power-sources (bio-fuels….)

COMPETION THROUGH PROVISION of ENGINE CHOIES

• Prefer to have a choice of at least two engines from the major manufacturers

• Manufacturers prefer to be single source for each kind of airplane.

CONTROVERSIES: SUBSIDIES

• Aids in form of credits to Airbus, while Airbus has argued that Boeing

• Boeing receives subsidies through military and research contracts and tax.

CONTROVERSIES: WTO LIGITATIONS

• WTO ruled that European governments unfairly financed Airbus

• WTO said Boeing has to repay subsidies

BATTLE IN VIETNAM MARKET

• Shares in VietNam market is balanceExample: 12 Boeing 787 Dreamliners versus 10 Airbus A350s & 20 A321s

• Political matters involves in most of orders

SUMARY

• Focus on applying new technologies and protecting environments • Competing in every fields• Both company get supports from government

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