Airbus and Boeing: a Comparison

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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 that 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 “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 highlight each companies
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