Boeing Versus Airbus

Boeing and Airbus have been in competition with each other for years, but, according to Therese Leung, in 1996 when Boeing and McDonnell Douglas merged, Boeing and Airbus became the only two large aircraft manufacturers making a duopoly between them that has created a heated competition between the two companies. An article on Watchingamerica.com discusses the complaints that the two companies have filed against each other because of the predicament. In 2005 Airbus filed a complaint with the World Trade Organization due to the subsidized money awarded to Boeing by Washington.

While Boeing has been in business much longer than Airbus, Airbus has given Boeing a run for their money and have had competitive numbers with them for years. According to International Business Times, Boeing only sold 13 more airplanes than Airbus in 2012, however, where Boeing delivered 601 planes 1,203 were originally ordered. Airbus, Meanwhile delivered 588 planes out of 833 ordered closing on more than half of their deals unlike Boeing who closed on barely 50% of their orders. Another advantage that Airbus holds is their price, Boeing might be selling more planes but Airbus is making more off of theirs. According to CNN the price of a Boeing 747-B is $317 million compared to the Airbus A380 which sells for $375 million. The 747 and the A380 are not the only planes that these two companies have in competition, frankly they pretty much go blow for blow but one of the biggest upcoming duels will be the competing 777X and the A350. According to Reuters, Boeing has lost several deals to Airbus in the Asian markets and is hoping to hold onto their remaining contracts but worries, the 777X won't be released until 2020 while the A350 is out in 2015.

In some ways it may seem that Airbus may have the upper hand but on then at times it appears that Boeing does, I don't believe that the relationship between the two will ever be a matter of who comes out on top but will continue to be a cycle that move up and down and where one company may have the upper hand in one area, the other company will be successful in another, an example of this would be the amount of planes that the companies have sold and how many are still flying. According to International Business Times, Boeing has delivered 15, 328 planes since 1974 and Airbus has only delivered 7,877, however only 9,091 of Boeing's airplanes are still flying while Airbus has 6,430 still in operation.

If there is ever to be determined a victor among the two companies it may boil down to their values and how they conduct their business, not who can sell more planes. According to Forbes, Airbus continues their manufacturing with the belief that smaller regional planes that fly connecting flights between smaller cities, is the future of the industry. Boeing operates on the notion, however, that customers should be able to fly where they want to go, at the time they want to go there. In other words there should be no middle man, just one plane that goes from point A to point B. It will be interesting to see how this pans out in the next few years, if there will continue to be an increase in regional flights or if more people prefer to fly on larger, point to point aircraft. Personally I believe that domestic flights will continue the trend of smaller regional flights where international travel will provide for the larger flights that Boeing wishes to provide. In the end, I foresee these two companies battling each other for a long time.

Babej, M., & Pollak, T. (2006, May 24). Boeing versus airbus. Retrieved from http://www.forbes.com/2006/05/23/unsolicited-advice-advertising-cx_meb_0524boeing.html

Boeing 747-8 vs. airbus a380 -- the airline giants face off. (2011, December 17). Retrieved from http://travel.cnn.com/explorations/life/boeing-747-8-and-airbus-a380-death-match-152563

Govindasamy, S., & Hepher, T. (2013, October 8). Airbus versus boeing japan battle switches to ana. Retrieved from http://www.reuters.com/article/2013/10/08/us-airlines-japan-boeing-airbus-idUSBRE99713N20131008

Leung, T. (2013, June 3). Duopoly: Boeing and airbus. Retrieved from http://prezi.com/urpxd0mtsr_8/duopoly-boeing-and-airbus/

Mahapatra, L. (2013, June 15). Boeing vs. airbus: Who is selling more planes now and in the past [infographic]. Retrieved from www.ibtimes.com/boeing-vs-airbus-who-selling-more-planes-now-past-infographic-1308499

It's airbus vs. boeing: Largest trade war in wto history may have just begun . (2005, June 01). Retrieved from http://www.watchingamerica.com/eldiarioexterior000004.html