Airbus and Boeing a Comparison - 1605 Words

aIRBUS AND bOEING: a cOMPARISON by Jeffrey Everette Hardee A Paper Presented in Partial Fulfillment of the Requirements for PUP 598 - Air Transportation and Regulation ARIZONA STATE UNIVERSITY September 2004 It may be argued that the next major challenge in the business of air transportation, beyond the invention of heavier-than-air flight and jet-powered planes, is the worldwide separation of the market between two mega-corporations. Airbus and Boeing currently dominate about 90% of the air transportation market with very few major competitors on the horizon. However, Canadian-based Bombardier is creeping up in its business jet market share of 27% (Bombardier press release, 12/4/2003). The competition between Airbus†¦show more content†¦This agreement is currently being renegotiated further in an attempt to eliminate all government subsidies. The US continues to charge Airbus with an unfair advantage, while the EU has charged Boeing with receiving equal, if indirect, subsidies. If these negotiations fail, both parties have indicated their willingness to take their case to the World Trade Organization (WTO) for arbitration, but industry insiders believe tha t this is an empty threat as both companies would benefit the most without WTO oversight. The newest models in production by Airbus and Boeing represent their competing views of the future of the industry. The Airbus A380 is their solution to growing traffic between major hubs. Their plans for the A380 signify their current goals of reducing operating costs, increasing range, reducing fuel burn, and reducing noise and emissions (Airbus, Aircraft Families – Introduction A380 Family). The Boeing 7E7 is their solution for non-stop flights between secondary cities. Boeing’s goals for the 7E7 are to bring â€Å"big-jet ranges to mid-size airplanes†, burn 20% less fuel while traveling at Mach 0.85, an emphasis on passenger comfort to include higher humidity rates in the passenger area, and a composite material body with open architecture systems (Boeing, Boeing 7E7 Dreamliner Will Provide New Solutions for Airlines, Passengers). These differing approaches highlig ht each companiesShow MoreRelatedBackground of Boeing Corporation647 Words   |  3 PagesBackground- The Boeing Corporation is one of the United States largest exporters and is a predominant aerospace and defense corporation. Boeing is the worlds largest global aircraft manufacturer (by deliveries and revenue), and the second-largest defense and aerospace contractor (Defense Contractor Ranking, 2008). Airbus is an aircraft manufacturing subsidiary of EADS, a European aerospace company. It is a merged consortium of several aircraft manufacturers, and is based in France. Airbus is continuallyRead MoreBoeing vs Airbus: Who is in the Lead?705 Words   |  3 PagesBoeing occupied 57% of the world’s existing fleet in 1992 where one-third of total revenues came from military aircraft and remaining two-third came from commercial aircraft. By the end of 1992, Boeing had delivered total 7183 commercial aircraft into the global aviation market. These included 59% of short-to-medium range aircrafts (727 737), 27.7% of medium-to-long range aircrafts (707,757 767) and 13.3% of long range aircrafts (747). For the other case, Airbus occupied 16% of the world’s existingRead MoreBoeing s Product Is Planes Essay1597 Words   |  7 Pagesaircrafts include commercial airplanes freight airplanes, and Boeing Business Jets (BBJ). All of Boeing’s aircrafts stem from their five jet families: 737, 747, 767, 777, 787 (Boeing, 2016). Each family differs in size, engine, build, range, and capacity in order to meet the needs of all Boeing customers. 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In 2014, Boeing bookedRead MoreAnalysis Of Boeing Company And Aerospace And Defence Industry Within Industrial Goods Sector1045 Words   |  5 PagesPart Three: Analysis of Company Accounts Section 3.1 Introduction All three companies under analysis in this part of the report including Airbus Group, the Boeing Company and Lockheed Martin are operating in aerospace and defence industry within industrial goods sector. Financial performance of Boeing is assessed by analysing a series of ratios measuring the efficiency, liquidity, economic value added and profitability of the company accounts. For the reason that ratio may be of little meaningRead MoreA Case Of Airbus : The Key Drivers For Globalisation917 Words   |  4 PagesA case of Airbus Introduction Globalisation describes a process when capital, domestic product and labour markets become more integrated across national boundaries. The key drivers for globalisation are: the advances in transport and communication, the increasing level of international trade and labour has become more internationally mobile (Anonymous, 2007). As a result of globalisation, more and more businesses are setting up or buying operations in different nations. When a foreign company investsRead MoreBoeing Based On My Real World Job With The Federal Aviation Administration1718 Words   |  7 PagesFor this assignment, my decision to write about Boeing is based on my real-world job with the Federal Aviation Administration and the fact that I process pounds of mail from them on a weekly basis. Company History The story of Boeing started in a Seattle, WA shipyard in March 1910, but the company didn’t get its official start until July 1916. Throughout Boeing’s history, it has been closely associated with military aviation, through its early foray into air mail delivery eventually gave birthRead MoreFinancial Analysis for Boeing1336 Words   |  6 Pagesthe brief history of Boeing, the company was first founded in Puget Sound, Washington in 1916 by William Edward Boeing. After sucessfully selling military aircrafts adapted for troop transportation in the 1950’s and introducing commercial aircrafts model 707, 727 followed by 737, Boeing has since then become a leading producer of military commercial aircraft. After a few number of mergers acquisitions to become the world’s largest, most diversified aerospace company, Boeing enterprise now include:Read MoreFinancial Analysis And Management : Boeing And Airbus 83699 Words   |  15 Pages Financial Analysis and Management â€Æ' Table of Contents Background of Boeing and Airbus 3 Identifying Key Stakeholders 3 Analysis of the disclosure regime 4 ROE and ROC 4 Investment returns analysis 7 Capital structure analysis 7 Financial comparison of Boeing and Airbus 8 Dividend Payout ratio 8 Conclusion 8 References 8 â€Æ' Executive Summary In an inevitably competitive worldwide business, organizations need to perceive the need to oversee scarce financial assets to build productivity whileRead MoreThe Impact of the A380 Project on the Financial Performance of EADS16541 Words   |  67 PagesDr. Britt Aronsson and the course coordinator Dr. Klaus Solberg. Abstract Airbus has been making headlines in the past few months for all the wrong reasons. This iconic European corporation has undergone a turbulent period due to the problems surrounding the Airbus A380 project. A new flagship product that should have curved out an unassailable advantage for Airbus over Boeing went completely wrong. The Airbus A380 aircraft was a ground breaking concept that was meant to push EADS into a unique