The Battle between Airbus and Boeing
At the commercial aircraft industry, there are three main segments: large commercial airplanes (LCA); regional jets;
At this moment only Boeing and Airbus belong to segment of large commercial airplanes (LCA), with firms such as Embraer of Brazil and Bombardier of Canada taking up positions within the segment of regional jets in North America, firms such as Gulfstream and LearJet round out the market of private jets (Heppenheimer 2001:135). There are striking differences between the LCA and regional jet segments. The LCA market is truly global, which will be discussed later, while the regional jet market remains localized generally to one hemisphere –
Bombardier and Embraer typically do…show more content… Boeing):
Figure 2. Yearly Total Orders
b) Yearly total deliveries (Airbus vs. Boeing):
Figure 3. Yearly Total Deliveries
As we can see from the pictures above, the Boeing was the leader of the LCA for more than 10 years until 2003. It was happened because in early 2000s Airbus has taken some important decisions that affect the company 's financial position at the moment. The strategy includes next two points:
1. First, it was made the risky decision to initiate the development and production of A380. Even after four years from the start of the production of A380 it has not come to a profitable level.
2. The second important factor was the decision to sell the aircraft at a loss or with minimal profit in order to increase market share.
And this strategy was right! For example, as we see from the chart Airbus delivered 311 aircraft to customers, Boeing – 491 in 2000. In year 2003, the ratio changed in favor of Airbus (at first time!) - 305 against Boeing - 281. Airbus’ orders grew up from 132 billion euros in 2000 to 541 billion euros in 2011 (from 124 to 700 billion