ARIN KAAN EREN


          COMPETİTİON BETWEEN BOEING AND AIRBUS

      Brief History of Boeing:
boeing 747

Boeing was one of the world's leading aerospace companies and the largest manufacturer of satellites and military aicrafts worldwide. It was founded in 1916 which means approximately 100 years ago. In that time when the company was founded, the peace situations in the world was complex. WW1 had already been started and USA has entered the war close to the date that boeing built up. So, boeing took the advantage of the sutiation and shipped military aircrafts for the navy. As the other countries seeing US navy using aircrafts during war, they effected by them, and the use of aviation started to grow in the world. After the wars, boeing started manufacturing commercial jetliners with the developments in the world aviation sector. Now, it is a well-known aircratf manufacturer sharing a duopoly with Airbus company

Brief History of Airbus:


Airbus A380
  Airbus is an european joint venture between EADS ( European Aeronautic Defence and Space Company) and BAE ( British multinational defence, security and aerospace company). Airbus is known as the innovation leader by using up-to-date technologies. That's why, it shares a duopoly with Boeing company even though it started manufacturing in 1969. Their first aircraft called A300 came in 1974.Influencing by innovations and expanded knowledge, A320 which was the most successful design for years came in 1980s. In order to respond industry requirements, A380 which is the largest commercial airliner introduced. A380 is also known as the best solution for 21st century growth wiht allowing airlines maximize their profit.

After a brief looking on both company's history, I am starting to evaluate the competition between the companies.

As you already know, the competition between Airbus and Boeing is intense.Once a company come up with a new product, another company responses immediately to share market demand. Boeing company was beyond airbus till 2000 if you consider the aircraft orders,but then , the competition turned as an advantage of Airbus. A380 was introduced in 2001 which was the largest airliner so that Europe get the position of having the largest aircraft capacity from USA. A380 was a respond for Boeing 777 and it had 555 passanger capacity. After that, Boeing announced starting a new design in order not to lag behind the competition. The new design was Boeing 787.



USE OF TECHNOLOGY

Airbus started to compete with well-established Boeing company in the 1970s through its introduction of advanced technology. For example, A300 made the most extensive use of composite materials yet seen an an aircraft of that area, and by automating the flight crew. In the 1980s, Airbus was the first to introduce digital fly by wire controls into an airliner(A 320). Both company uses advanced technology to seek performance advantages in their products. Many of these improvements are about weight reduction and fuel efficiency. For instance, the Boeing 787 Dreamliner is the fist large airliner to use 50 percent composites for its construction. The Airbus A 350 features 53 percent of composites.

SAFETY

Both aircraft manufacturers have good safety records on recently manufactured aircrafts. The Boeing 737- N6 and Airbus A 320 families and both company's wide body offerings have good safety records. Older model aircrafts, such as the Boeing 707, 727, 737-100/200, Airbus A 300 and A 310 which were recpectively first flown during 1960s-1980s, have had higer rates of accidents. By convention, both companies tend to avoid safety comparisons when selling their aircrafts. 


MARKET SHARE FİGHTS

The competition between two companies focuses on The Far East which is a new and developing market. Airbus go into a huge investment in China to respond the activeness of Boeing in Japan. A Japanese airline company All Nippon made the biggest order for the new model of Boeing called Boeing 787. On the other hand, Airbus company opened offices in Japan to have more share on Japanese markets. Also, both companies use their political impact on international area to have more power on global markets. For example, Airbus company prefered to use European Nation's opportunities to be more effective on Chinese market.

ROLE OF TURKEY

In this competition, Turkey has a different position. If you consider the history and geopolitical location, Turkey has close political, economical and military relationships with European countries and USA. So, this creates a dilemma for Turkey when making a decision of aircraft orders from which company.On one side, Airbus from Europe which is Turkey is trying to be a member of EU. On the other side, Boeing from USA which is a global and regional ally of Turkey. So, Turkey took a decision of making balanced orders between two company.


                                                                                                                                                                                                                                                                                     
                                                                           








4 yorum:

  1. First of all good job. I liked your post very much.
    I think in every industry,not only in airline, competition is a good thing. Because thanks to fierce competition new innovation and technology born.I have done a research on Airbus innovation.Truly i was shocked of what they have done. And I am pretty sure that for this they also owe Boeing.They are trying their best not to loose to Boeing. If there will be only one manufacturer, it will dominate the whole market, making monopoly. Monopoly has a lot of bad effects on consumers such as high prices, no opportunity of choice, no innovation etc. Also competition contributes in the quality of the production. If an aircraft will be low qualified, of course consumers wont buy it. So in order not to loose their customers manufacturers have to take high control on quality issue. Especially in aircraft manufacturing industry. Because the product is not close to the meaning of "cheap", lives of many people depend on the quality of an aircraft. A little mistake can cause an enormous accident.
    After reading your post i have done some researches on my own. The results were as i expected. The competition is really fierce. Boeing has been ahead in deliveries on an annual basis for three years after a lengthy winning streak for Airbus. Airbus won the annual order race last year with 1,456 net orders, squeezing ahead of Boeing's total of 1,432.None of the companies are going to give up. Relating to the newest reports(spring, 2015) U.S. planemaker Boeing (BA.N) beat European rival Airbus (AIR.PA) in net new orders and deliveries in the first quarter. but the gap between them in deliveries, which generate most revenue, widened after Boeing handed over a record number of jets for the period.Airbus said it had booked gross orders of 121 aircraft in January-March, beating Boeing's 116.After cancellations and conversions, it slipped behind Boeing with 101 net orders as opposed to 110 for Boeing.
    I think there wont any space for a new manufacturer in the near future with giants competitors like that. :))..
    In the end again good job! Good luck. ;)

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  2. Hi Arın. Firstly, you have done very well. To me , there are lots of things between Boeing and Airbus. But competition is the most important thing that helps to improve innovations.As you said , Boeing was established 1916 which means approximately 100 years ago.This is a huge time. According the early foundation Boeing might be ahead of the sector.But Airbus as the sectors expected has grown rapidly.I have done the researching the technological differences between Boeing and Airbus.And I have mentioned Fly-by-wire technology.While Airbus was establishing authorities of Airbus had to find or develop something different from Boeing to take the first place of the sector.Engineers have developed the Fly-by-wire system after that Airbus has contributed a huge benefit to the sector.I think fly-by-wire and the other innovations all about the competition between the Airbus and Boeing.As in all other sector competition is something beneficial for evolution.Thanks for your blog .

    YanıtlaSil
  3. Hello ARIN,

    I like your blog. you choose nice topic. Airbus and Boeing. As we all know, Boeing company was founded earlier. You told you in this blog. Your information descritive, and understandable. I congratutale you for that. It attracted my attention the most part, what was written about tyhe subject of Airbus. After the gratuated , I want to work on Airbus company. I learned about history of Airbus company. You give some information about the Airbus company while you are talking about A 330 , A 320, A 380 aircrafts. I appreciate your blog but you coluld given more than two pictures and given more information. Your writting was short and brief. Thank you for your sharing information with us. :))

    YanıtlaSil
  4. Arın you've made a great job! your topic was quite informative. We know somethings about airline companies but we don't have an idea about their market share fights. they are two big boss of this sector and ofcourse they have a fight between them. I do some researches about this fight and I2ve learned that the Airbus had a380 and this is really big advantage in this fight. but Boeing will not fight with airbus about the plane capacity in future. Boeing is planning to fight with them with their technologic advantage. I'm thinking that if one of them is head for the luxury, it will win this fight. As you know if you sold all the business class's tickets you can easily make profit. And if you sale your Luxury planes Aircraft firms wants to purchase it to give the people luxury.

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