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Aribus A380 Vs Dreamliner 787

Essay by   •  December 22, 2010  •  344 Words (2 Pages)  •  1,073 Views

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The commercial aeroplane manufacturing industry is dominated by two large players, Boeing and Airbus. Both are operating in a very competitive environment and the strategies of one strongly impact the business of the other.

According to the Money Programme (1998), the Boeing 747 or Jumbo Jet, the largest airplane in the world, has enjoyed a monopoly for almost 40 years and has brought in large profits for Boeing. But approximately 10 years ago, Airbus decided to look into to the possibility of manufacturing an even larger and more efficient plane. They decided to target the market of jumbo jets with their newly invented double-decked super jumbo, the A380, which replaces the Boeing 747 in the segment of being the largest passenger jet in the world.

But immediately an important question arose, has Airbus really got what it takes to dominate in the skies?

The decision of making a super jumbo arose when Boeing kept on producing four 747s a month during the nineties, which realized a massive amount of turnover, a massive amount of profit that Boeing had in the market. But the A380 is a big gamble in the passenger aeroplanes world. And with the launch of the A380, they are almost betting the net worth of their company, because the costs of development and non-recurring production costs of the A380 are quite massive.

Unlike Airbus, Boeing does not have such a huge jet because they think the market does not require such a giant aeroplane and if it does, then they certainly will start developing one.

But Boeing still has the 747, the biggest aeroplane in the world next to the A380.

But nevertheless, Boeing answered with their new child, The Dreamliner 787, which speculates on economy and has to compete with Airbus in the segment of medium-range aircraft.

The two companies, Airbus and Boeing, have different philosophies on what airlines and people will want

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