Airbus and Boeing: Divergent Growth Plans


Code : COM0008

Year :

Industry : Aircrafts and Ship Building

Region : USA Europe

Teaching Note:Not Available

Structured Assignment :Not Available

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The Boeing Company William E. Boeing (William) and George Conrad Westervelt founded Boeing Company in 1916. The company was then called "B&W" and a year later was renamed as "Boeing Airplane Company". Though the company manufactured only two planes called B&W seaplanes, their first sale to NewZealand flying schoolmarked the beginning of a company that later went on to influence world’s commercial aviation industry...

The Rise of Airbus Each partner in the consortium was assigned different production and assembling tasks. But due to the differences with other partners, Britain withdrew and the Airbus project was reorganized and named 'Airbus Industrie', a Franco-German company. In 1974, Airbus launched its first twin-engine A300, a wide body aircraft with a capacity of 256 passengers, to gain entry into the medium-capacity airliner market...

Battle for Future Markets Airbus felt that strong passenger and freight growth rates, coupled with geographic concentration and airline alliance trends, would result in greater demand for large aircraft. While Airbus predicted that airlines would buy 1,144 super jumbos (planes with more than 500 seats) by 2020, Boeing forecasted only 320 super jumbos, as it felt that the industry would move away fromthe hub-and-spoke network towards direct flights between smaller airports...

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