Boeing Case Summary

I am the Project Manager developing the Boeing 787 Dreamliner. The development of this state-of-the-art airplane will include an international team of aerospace companies led by Boeing. The advances in this airplane will reduce the use of fuel by 20%, increase cargo capacity, increase nautical miles in a mid-range airplane, and improve passenger comfort. Boeing

As a manufacturer of transportation equipment, Bombardier is well positioned in the aerospace and transportation segments to capture long-term market opportunities in Business Aircraft, Commercial Aircraft, and Aerostructures and Engineering Services (Bombardier Inc., 2014). These opportunities are expected to continue to rise due to accelerating urbanization and the rising need for mobility (United Nations, 2014). Furthermore, the state of the world economy and those of individual countries are key factors in the demand of air travel.

Boeing adopts a very thorough, well planned out process to manage the project. The stages are defined clearly and tasks involved in each stage are carried out sequentially. The first stage of their approach is the project definition phase during which Boeing identified holes in the market not met by existing planes, assessed future airline needs, considered alternative plane configurations, explored feasibility of possible technologies and performed preliminary estimation of costs. During the market assessment, analysts gathered information regarding future needs of airlines by speaking directly to

In 2000, Airbus Industrie’s Supervisory Board was making the biggest decision in the company history: whether Airbus should commit to develop world’s largest jumbo jet. At that time, there are only two major commercial jets manufactory companies: the younger Airbus and the bigger Boeing. Boeing had been at the forefront of civil aviation for over half century. Airbus was founded in 1970as a consortium and merged into a new company known as European Aeronautic Defense and Space Company. Airbus developed “fly-by-wire” technology and “cross crew qualification” technology to compete with Boeing in large jets (those with 70 or more seats) market. While Airbus was booked more than

Market Share Airbus will launch their new large, long distance plane A380 in 2006. This plane can be a dreadful competitive product to Boeing. If Boeing falls behind regarding innovations, fuel efficiency and other attributes of a long haul airliner, it will soon lose its market share. In order for Boeing to compete in the aviation industry, it is crucial to take on some risk and develop this new 7E7 project. This helps the company to fight against its competitors and recover from the slump in the industry.

Airbus predicts that there would be demand for more than 1500 super jumbos over the next 20 years that would generate sales in excess of $350 billion. And they could sell as many as 750 over jumbos over the next 20 years with a break even on undiscounted cash flow basis with the sales of only 250 planes. There is a huge profit in this business if Airbus succeeds in the industrial launch of A3XX jumbo jets.

It is suggested that the travel industry and the aerospace and defense industry as a whole will continue to grow on the basis of the strong demand emanating from domestic demand as well as globalization. This may give a major boost to the demand for 7E7s as the airlines are already concerned about high fuel costs intensifying out of increased demands from emerging economies like India and China and reduced production. Better design modifications is going to be a major strength for the 7E7 as Boeing is betting on the future of small-mid size airplanes which can fly short as well as long distances with its fuel efficient engines. From an investment perspective, with interest rates at it's lowest in decades, with 911 behind us, and barring a major pandemic such as SARS, the timing seems right for Boeing to pursue this endeavor.

Dominating the commercial aircraft market for decades, Boeing is considered to be the most highly competitive U.S aerospace industry. “U.S. firms manufacture a wide variety of products for civil and defense purposes and, in 2010, the value of aerospace industry shipments was estimated at $171 billion, of which civil aircraft and aircraft parts accounted for over half of all U.S. aerospace shipments. The U.S. aerospace industry exported nearly $78 billion in products in 2010, of which $67 billion (or 86% of total exports) were civil aircraft, engines, equipment, and parts” (Harrison, 2011). However, its position of influence has lessened in recent years. This is due to its main competitor, Airbus, who in recent years has made significant

This is a case about three different companies dedicated to the manufacturing of aircrafts. Those three major companies are: Boeing, Airbus Industry and McDonnell Douglas; each of one was struggling to produce enough aircraft to satisfy a seemingly unquenchable need for passenger and freight transport around the world, developed in this form many kinds of aircrafts in different models and styles.

For instance, Nippon Airways was the first launch customer ordering 50 Boeing 787’s followed by 60 more orders from Chinese Airlines. With a successful launch of the 787, not only will they be able to regain industry leadership but also outperform Airbus’s A380 model.

Airbus’ competitor Boeing netted 40 new sales of their 747 model, worth $6.5 billion (USD) in 1994.3 This had portrayed Airbus’ inability to compete at this high value end of the market. With the mounting sense of urgency, Airbus need to intensify the design and development of a UHCA to fill the top end of its product line and stop the dominance of Boeing in large aircraft market with 747 for over two decades. Hence, in June 1994, Airbus announced its project goal to build a high-capacity, high-efficiency aircraft with up to 569 seat capacity and a maximum range of 8,520 nautical miles; the project was designated A3XX.4 Many airlines faced a dilemma whether to opt for earlier option of the new Boeing 747X, or the all new A3XX. During a meeting with 13 major airliners in Carcassonne, Airbus had then assured them with a scope to work toward preliminary and final design freezes scheduled on the end of 1997 and

On April 26, 2004, as Airbus surpassed its market share for the first time in the history, Boeing announced its plans to develop the Dreamliner 787 (initially known as Boeing 7E7). These plans were meant to recapture its leading position in the commercial aircraft market. With this aircraft, Boeing used a different approach for development. This report introduces the market position of the 787, addresses its new development strategy and its possible outcomes, and provides recommendations to the project regarding challenges and the competitors Boeing faces.

Airbus’s main competitor, Boeing Company was founded in 1916, it has been the world 's leading manufacturer of large commercial aircrafts for several decades (Tong & Tong, 2003). However, in 2005 Airbus delivered more planes than Boeing, due to the 911 terrorist attack in 2001, and suffered a strike by workers in the manufacturing site last autumn. Between 2005 and 2004, Airbus deliveries increased by 18% to 378 aircraft, said Chief Executive Gustav Humbert. It was a new record for Airbus, it was a better outcome than the European aircraft maker 's perdition (370 deliveries). On the other hand, Boeing, which has lagged behind Airbus in orders since 2001 and deliveries since 2003, only delivered 290 planes in 2005 (Michaels, 2006).

The A380, representing an investment of € 10.7 billion, is one of those projects that could make or break a manufacturer. It was in the late 80s, with forecasts of strong growth in air traffic, the need to design a very large aircraft of over 500 seats was necessary at Airbus in addition to and the need to complement its range of aircraft. While working on its own project, the European manufacturer started a conversation with Boeing in 1994 about considering a partnership on the concept of VLCT (Very Large Capacity Transport, plane at very high capacity). However, the Americans eventually withdrew and abandoned the idea persuaded that neither aircraft manufacturer was strong enough to embark alone on such an adventure. According to our research, our team believes that Boeing’s real

It needs to be stressed that, with regards to selecting the most efficient aircraft, different types of airline will utilize different fleet planning strategies. Thus, non-scheduled carriers, cargo operators, low-cost carriers, and leasing companies will apply different criteria with regards to fleet planning (Clark, 2012). In this section, the present report focuses on major U.S. airlines such as American Airlines, Delta Airlines, and United Airlines to examine strategies mobilized by airline companies when purchasing new aircraft. In addition, Korean Air will be considered so as to better gauge the current situation of the US airlines’ flight operations by the way of a comparison with a major international airline.