Microsoft Word 2009 Case Report Page[1]

Nature and Criteria of Competition

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airbusvsboeingtermpaper
eco case Group 1

Nature and Criteria of Competition
A tight competition exists between Air Bus and Boeing each year for large aircraft orders. Airlines allover the world are the biggest benefactor from the competition between airbus and Boeing, choosing the range of seat from 100 seats to 500 seats. The American-based company Boeing used to be in a monopoly position in the airline industry from
1916 to late 1970, This changed in the 1970 when the European company Airbus was founded and competed American aircraft manufacturing companies like Boeing, McDonnell Douglas, and Lockheed etc.

Page 4 (7) They both produce the same type of aircrafts which makes them rigid competitors when it comes to developing the best airplanes available at the market.
However both competitors have along product range for different segments. Though there are 4463 airbus aircraft in service, but the Boeing are six time greater then airbus, The A, for example is designed to be larger than the 747. The A
XWB competes with the high end of the 787 Dreamliner and the low end of the 777.
The A is tried to further reduce sales of the Boeing 747, gaining Airbus a share of the market in very large aircraft, though frequent delays in the A program have caused several customers to consider the refreshed Airbus has also proposed the
A350XWB
to compete with the fast-selling Boeing 787.

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