Running Head; Boeing Vs.

Airbus 1
2011
(NAME)
BOEING VS AIRBUS
(COURSE)
(PROESSOR)
(!A"E)
"o#a$ %or$d &oun#; '()'
Boeing VS Airbus 2
Abs#ra&#
"*e de+and ,a&ing air&ra,# +anu,a&#urers ,or ne- orders is in .rin&i.a$ deri/ed ,ro+
#*e .er&ei/ed ,u#ure de+and ,or &o++er&ia$ a/ia#ion. Se/era$ 0e1 e2#erna$ e&ono+i& ,a&#ors
are $i0e$1 #o ou#$ine de+and ,or ne- air&ra,#. "*ese ,a&#ors are a&&essed ,ro+ #*e .ers.e&#i/e
o, de&ision +a0ers in #*e air$ine indus#r13 Airbus and Boeing3 in #*is .a.er. A$so ana$1sed in
#*e .a.er are #*e re$e/an# s#ra#egies e+.$o1ed b1 bo#* air$iner +a0ers #o +ani.u$a#e #*is
,a&#ors or +anoeu/re around #*e+ in order #o sur/i/e in #*e +ar0e#. "*e re$e/an# #*eories o,
s#ra#egi& +anage+en# are a$so ana$1sed in #*e .a.er. "*e .a.er is a$so di/ided in#o #-o
dis#in&# .ar#s one #a&0$ing on &on#e+.orar1 business issues and s#ra#egi& +anage+en#.
Boeing VS Airbus 3
Par# A; Con#e+.orar1 business issues
In#rodu&#ion
%i$bur and Or/i$$e %rig*#3 in O*io3 +ade #*e ini#ia$ su&&ess,u$ ,$ig*#s in 456(3 and
#-o 1ears $a#er3 #*e1 asse+b$ed a -e$$7&on#ro$$ed air&ra,#
4
. "*is origina$ su&&ess in #*e
&en#uries7$ong rea$i#1 o, ,$ig*# &$eared #*e -a1 ,or #*e s#ar# o, #*e road #o #*e e+ergen&e o, #*e
air&ra,# &o++er&e; -*i&* is #*e Uni#ed S#a#es8 +os# .ro,i#ab$e +ar0e# and indus#r13 *a/ing
genera#ed abou# 496 bi$$ion do$$ars in sa$es in 45553 as -e$$ as ': bi$$ion do$$ars in e2.or#s #o
o#*er &oun#ries
:
. An essen#ia$ se&#ion o, #*is indus#r1 en#ai$s #*e &o++er&ia$ air&ra,#
+anu,a&#urers. Conse;uen#$13 i# is /er1 i+.or#an# #o re7e2a+ine #*e &ons#i#uen#s and #*e .as#
o, #*is indus#r1 #o ana$1<e #*e e,,e&#s /arious .ub$i& .o$i&ies and e&ono+i& ,a&#ors &ou$d *a/e
on #*e .rodu&ers in addi#ion #o #*e bu1ers o, air&ra,#s.
A Brie, His#or1
In 456(3 #*e %rig*# bro#*ers #*ri/ed in ,$1ing #*e .ri+ar1 .$ane3 =i##1 Ha-03
es#ab$is*ing #*e onse# o, #*e a/ia#ion indus#r1
(
. Pre/ious$13 #*e &o++uni#1 did no# #a0e on
air&ra,#s as re$iab$e -a1s o, #rans.or# o-ing #o #*e insig*# #*a# i# -as unsa,e. Ne/er#*e$ess3
#*is dis&ern+en# -as a$#ered3 -*en C*ar$es >indberg* e,,e&#i/e$1 #rans/ersed #*e A#$an#i&
O&ean in 45:?3 genera#ing an i++ense in#eres# in ,$1ing
9
.
In 45653 #*e %rig*# bro#*ers ,or+ed #*e %rig*# Co+.an13 -*i&* began b1 &rea#ing
air.$anes .rior #o $osing i# in an as#ringen# &o+.e#i#ion #o ano#*er air.$ane .rodu&er in Ne-
@or0 0no-n as G$enn Cur#iss
A
. Cur#iss8s &o+.an1 bui$# su&* .re+iu+ .$anes #*a# #*e %rig*#
1
He..en*ei+er3 ". A. B"*e U.S. Air&ra,# Indus#r1 C An O/er/ie-3D U.S. Centennial of Flight Commission.
*##.EFF---.&en#ennia$o,,$ig*#.go/Fessa1FAeros.a&eFAeroOV4.*#+.
2
%i$$ia+ Co$. BIndus#r1 S#udiesE Air&ra,#3D The Industrial College of the Armed Forces.
*##.EFF---.ndu.eduFi&a,Findus#r1F:666Fair&ra,#Fair&ra,#.*#+.( :66A)
3
!e/ani Bo1d3 BSa,e#1 and Pro,i#s in #*e Air$ine Indus#r1.D The Journal of Industrial
Economics, (9 (() (:666)E (6A.
4
Ibid.... (46
5
He..en*ei+er3 ". A. B"*e U.S. Air&ra,# Indus#r1 C An O/er/ie-3D U.S. Centennial of Flight Commission.
*##.EFF---.&en#ennia$o,,$ig*#.go/Fessa1FAeros.a&eFAeroOV4.*#+.
Boeing VS Airbus 4
Co+.an1 &ou$d no# ,ig*#3 resu$#ing #o &*anging i#s na+e #o %rig*# Aeronau#i&a$ Co+.an1
and #urning #o &rea#ing air&ra,# engines.
%i#* #*e brea0 ou# o, %or$d %ar I3 "*e indus#r1 e2.erien&ed a de&$ine in de+and3 and
#*is $o- de+and .ersis#ed a$$ #*roug* so+e 1ears a,#er #*e -ar. Ho-e/er3 one o, #*e $eading
,ea#ures in #*e e2.ansion o, #*e air #rans.or# indus#r1 in #*e .os#7-ar era -as #*e
ad/an&e+en# o, #*e +ai$ #rans.or# s1s#e+ b1 #*e U.S. Pos#a$ Ser/i&e
'
. "*e =e$$1 Air+ai$ A&#
o, 45:A .er+i##ed .ri/a#e air$ines #o o.era#e as +ai$ #rans.or#ers #*roug* &o+.e#i#i/e bids.
"*e air+ai$ .ro&eeds aided .ri/a#e &arriers #o de/e$o. in#o #a0ing o#*er #1.es o, &argo3 as
-e$$ as .assengers. Pros.e&#s ,or ne- .ro,i#s a$so $ed #o #*e e2.ansion o, .re/ious$1 ne-
.rodu&ers su&* as !ona$d !oug$as3 %i$$ia+ Boeing3 and A$an >oug*ead #o go in#o business.
?

An in/es#+en# &or.ora#ion b1 Boeing3 Uni#ed Air&ra,# and "rans.or#a#ion
Cor.ora#ion3 a&*ie/ed a +aGor ad/an#age o/er o#*er .rodu&ers in 45:' b1 &ons#ru&#ing a
sing$e7engine .$ane #*a# -as ab$e #o &arr1 +ai$ and &o++u#ers o/er #*e Ro&01 Moun#ains.
Subse;uen# #o #*is a&&o+.$is*+en#3 bo#* air$ine &or.ora#ions and air&ra,# .rodu&ers ai+ed a#
&o++u#ers #o in&rease #*e in&o+e ,ro+ #*e air+ai$ s1s#e+
)
. "*e de+and ,or &o++er&ia$
.$anes &arried on #o aug+en# .rogressi/e$1 a$$ #*roug* #*e 45(6s3 bu# again endured ano#*er
de+and do-n#urn -*en %or$d %ar II bro0e ou#. Con/erse$13 #*e -ar assis#ed in genera#ing
su..or# ,or +i$i#ar1 air&ra,# resear&* and e2.ansion3 -*i&* e2.anded #o &o++er&ia$ a/ia#ion
5
.
"*e end o, -ar broug*# a ,a$$ do-n in #*e air&ra,# indus#r1 as a &onsiderab$e nu+ber o, ar+1
orders -ere res&inded
46
.
In #*e 45A6s3 #*e a.#i#ude and &o+,or# o, &o++er&ia$ air&ra,#s ad/an&ed signi,i&an#$1
as .$anes -ere +oderni<ed3 in&$uding #*e in#rodu&#ion o, Ge# ser/i&e in 45A5; ,a&i$i#a#ing
6
!e/ani Bo1d BSa,e#1 and Pro,i#s in #*e Air$ine Indus#r1.D The Journal of Industrial
Economics, (9 (()E (:6666 (44.
7
Ibid (4:
8
Ibid (4:
9
Ibid .. (4A
10
He..en*ei+er3 ". A. B"*e U.S. Air&ra,# Indus#r1 C An O/er/ie-D U.S. Centennial of Flight Commission.
*##.EFF---.&en#ennia$o,,$ig*#.go/Fessa1FAeros.a&eFAeroOV4.*#+.
Boeing VS Airbus 5
,as#er &ross7&oun#r1 ,$ig*# ser/i&e. !uring #*is .eriod3 Boeing $aun&*ed Boeing ?6? -*i$e
!oug$as +anu,a&#ured i#s !C +ode$s3 !C7) being #*e $a#es# +ode$ in #*a# de&ade .
44
In
subse;uen# 1ears3 Boeing and !oug$as &o+.e#ed .ro,ound$1 #o /end #*eir .$anes b1
.ro.osing &on/en#iona$ de/ia#ions o, a basi& design #*a# -ou$d ser/e air$ines8 .ar#i&u$ar
needs su&* as big -ings ,or $ong /arie#1. "*ese &us#o+i<a#ions -ere e2.ensi/e3 -*i&* aided
Boeing -in a signi,i&an# ad/an#age o/er !oug$as sin&e i# -as &a.ab$e o, +a0ing $arger
in/es#+en#3 sin&e i# -as se$$ing .$anes #o #*e Air or&e in $arge nu+bers. In #*e 45'6s3
Boeing $aun&*ed ?:? -*i$e !oug$as a$so s#a1ed in #*e ga+e b1 bringing i#s !C75 #o #*e
+ar0e#.
"o-ards #*e end o, #*e Vie#na+ %ar3 Boeing3 !oug$as3 and >oug*ead a$$ endured
e&ono+i& di,,i&u$#ies.
4:
Gradua$$1 re&u.era#ing ,ro+ .os#7-ar e&ono+i& &ir&u+s#an&es3
Boeing $aun&*ed air$iner ?9?. Ho-e/er3 #*is +ode$ -as #oo *uge3 -*i&* ga/e >oug*ead and
!oug$as #*e &*an&e #o +anu,a&#ure s+a$$er air$iners. >oug*ead +anu,a&#ured >74644 -*i$e
M&!onne$$ !oug$as .resen#ed !C746. Ho-e/er3 #*is -as a b$under sin&e #*ere -as Gus# roo+
,or one +ode$ o, +inia#ure air$iner in #*e +ar0e#
4(
. "*is ended in bo#* &or.ora#ions $osing
&a.i#a$ and s*o/ed >oug*ead in $ea/ing #*e &o++er&ia$ air&ra,# de/e$o.+en#3 be&o+ing a
so$e$1 +i$i#ar1 designer. !oug$as &on#inued #*e business bu# -as +one#ari$1 ,eeb$e ,ro+ #*e
&o+.e#i#ion -i#* >oug*eadand #*us i# &ou$d no# su..or# #*e resear&* and de/e$o.+en# o,
ne- .$anes.
"*ese issues raised #*e $i0e$i*ood o, Boeing #o be&o+e a near +ono.o$1 in #*e
air&ra,# indus#r1. A$#*oug* #*is ou#$oo0 +ade Air$ine e2e&u#i/es .ro/isiona$$1 &on&erned3
during #*e $a#e 45?6s3 Euro.ean .$ane .rodu&ers #o#a$$1 a$#ered #*e na#ure o, #*e indus#r1.
ran&e and U=3 -*i&* *ad .o-er,u$ a/ia#ion indus#ries3 *ad &rea#ed #*e Con&orde3 #*e
11
ibid
12
ibid
13
ibid
Boeing VS Airbus 6
-or$d8s sing$e su.ersoni& aero.$ane.
49
"*ese &oun#ries uni#ed -i#* %es# Ger+an1 #o ,or+ #*e
Airbus Indus#ries. !uring #*e 45)6s3 Airbus &o+.e#ed d1na+i&a$$1 -i#* Boeing3 &a.#uring a
big nu+ber o, orders and be&o+ing an in,$uen#ia$ ri/a$ #o Boeing in #*e indus#r1. So+e
+ergers +ade #*e air$iner business e/en +ore &on&en#ra#ed. Boeing u$#i+a#e$1 boug*#
M&!onne$$ !oug$as and ano#*er air&ra,# .rodu&er3 Ro&0-e$$ In#erna#iona$3 be&o+ing #*e
so$i#ar1 +aGor &o++er&ia$ air&ra,# .rodu&er in #*e Uni#ed S#a#es. "oda13 #*e Boeing
Co++er&ia$ Air&ra,# Co+.an1 and Airbus Indus#r1 &on#ro$ #*e &o++er&ia$ air&ra,# indus#r1.
4A
a&#ors #*a# +a1 a,,e&# de+and ,or a ne- air&ra,#
A +aGor ,a&#or #*a# &an $ead #o de+and o, &rea#ion o, ne- air&ra,# is an e&ono+i&
&risis. "*is re,ers #o a +aGor ,is&a$ &a#as#ro.*e in a &oun#r1 or #rans/erse$1 +an1 &oun#ries
#*a# a,,e&#s #*e ban0ing s&*e+e3 #*e s#o&0 +ar0e#3 and #*e s#eadiness o, a go/ern+en#. An
e&ono+i& &risis &an *a..en o-ing #o +an1 ,a&#ors bu# i# is ,re;uen#$1 due #o an
a+a$ga+a#ion o, reasons #*a# +erge #o genera#e ,inan&ia$ inse&uri#1. I# does no# on$1 a,,e&#
#*e in#erna#iona$ #rade bu# a$so #*e do+es#i& businesses in an e&ono+1. "*e re&en# re&ession
in #*e US +ar0e# and #*e in#erna#iona$ +e$#do-n re,erred #o as G$oba$ re&ession3 *a/e
o/er-*e$+ed #o#a$ -or$d e&ono+1 -i#* a /ar1ing +easure o, digressiona$ e,,e&#. %or$d o/er3
#*e i+.a&# *as /aried and i#s e,,e&# &an be s&ru#ini<ed ,ro+ #*e /er1 #ru#* o, ,a$$ing S#o&0
+ar0e#3 re&ession in Gobs a&&essibi$i#1 and &o+.anies ;,o$$o-ing do-nsi<ing in #*e e2is#ing
a&&essib$e s#a,, and redu&#ion o, #*e bonuses and sa$ar1 a+end+en#s
4'
.
In #*e g$oba$i<ed +ar0e# &ir&u+s#an&es3 #*e e,,e&# o, re&ession a# one7se&#or
.er&o$a#es do-n #o a$$ #*e asso&ia#ed se&#ors and #*is &an be a&&ura#e$1 &ons#rued ,ro+ #*e
&urren# +ar0e# &ondi#ion #*a# is ,a&ed b1 #*e -or$d. "*e bad$1 *i# se&#or is #*e ,inan&ia$
14
!e/ani Bo1d BSa,e#1 and Pro,i#s in #*e Air$ine Indus#r1.D The Journal of Industrial
Economics, (9 (()E (:666) (4).
15
S*ad H S*o0ra$$a3 BBoeing ??? Case S#ud1D3 Synthesis Coalition.
*##.EFFbi#s.+e.ber0e$e1.eduF++&sFb???F+ain.*#+$. (455?)
16
C*ris Har+an Zombie Caitalism! "lobal Crisis and the #ele$ance of %ar& (>ondonE Boo0+ar0s
Pub$i&a#ions :665) ;95)
Boeing VS Airbus 7
se&#or3 -i#* >i;uidi#1 Crises being a +aGor issue in #*e in#erna#iona$ +ar0e#s
4?
. Coun#ries -i#*
&urren# a&&oun# s*or#,a$$s and s#rong &redi# &1&$es are dis&o/ering i# *ard #o redu&e &os# o,
&a.i#a$ -i#*in #*is e2is#ing en/iron+en#. "*e e;ui$ibriu+ o, Pa1+en# de,i&i#3 a# a #i+e -*en
do+es#i& &redi# de+and is e$e/a#ed3 resu$#s in a ,ero&ious &ir&$e o, de&reased a&&ess #o
$i;uidi#13 s$o-ing e2.ansion3 and a+.$i,ied ris07a/ersion in #*e +one#ar1 s1s#e+
4)
.
A$#oge#*er3 #*e re&ession *as redu&ed #*e gro-#* .ro&ess and s#abi$i#1 o, #*e +ar0e#3
-*i&* is needed ,or #*e s+oo#* running o, #*e e&ono+1. Co+.anies es.e&ia$$1 #*e
in#erna#iona$ &or.ora#ions in&$uding #*e Boeing and Airbus re;uire &on#inuous ,$o- o,
$i;uidi#13 -*i&* is deri/ed ,ro+ #*e +ar0e#3 and -i#*ou# #*is3 #*e1 &on#ra&# in order #o &o.e
-i#* #*e &urren# business a#+os.*ere. So on order #o sur/i/e in #*e business -or$d a# #*e
&urren# &$i+a#e3 #*e #-o &o+.anies are ne&essi#a#ed #o &o+.$1 -i#* #*e de+ands o, &*ea.er
#o +ain#ain and +ore e,,i&ien# air&ra,#s #*a# &an redu&e o.era#iona$ &os#s and in&rease
.ro,i#abi$i#1. Boeing *as *ad .$ans o, $aun&*ing #*e BoeingHs ,u#uris#i&3 ,ue$7sa/ing
!rea+$iner as Airbus re$ease #*e A((6.
As in +os# o$igo.o$ies3 .ub$i& .o$i&ies *a/e a 0e1 ro$e in #*e .er,or+an&e o, #*e
.rodu&ers o, &o++er&ia$ air&ra,#s. Es.e&ia$$13 so+e o, #*e .o$i&ies #*a# #*e Euro.ean
&oun#ries *a/e under#a0en #o-ard Airbus *a/e a,,e&#ed #*e na#ure o, #*e &o+.e#i#ion be#-een
Boeing and Airbus. "*ere,ore3 i# is &ru&ia$ #o reassess so+e o, #*ese .o$i&ies in order #o
unders#and #*eir i+.a&# on #*is indus#r1. One o, #*e +ain ,a&#ors3 -*i&* *a/e assis#ed Airbus3
#*e Euro.ean air&ra,# +anu,a&#urer3 in &o+.e#i#ion -i#* Boeing3 is #*e grea# a+oun# o,
#e&*no$ogi&a$ &oo.era#ion #*a# *as o&&urred a+ong #*e Euro.ean &oun#ries
45
. O/er #*e 1ears
,o$$o-ing %or$d %ar II3 #e&*no$ogi&a$ &o$$abora#ion in&reased no#i&eab$1 a+ong Euro.ean
&oun#ries #o .u# u. -i#* i+.or#an# na#iona$ in#eres#s o, se/era$ s#a#es. A$#*oug* su&*
17
Ibid. ... A66
18
Mri#unGai 0u+ar3 e2.er# e&ono+is# and .ro$i,i& -ri#er.:646
19
=ei#* Ha1-ard BAirbusE "-en#1 @ears o, Euro.ean Co$$abora#ion.D International Affairs, '9 (4) (45)))E 44
Boeing VS Airbus 8
asso&ia#ions *a/e no# been idea$ and &o+.e#i#i/e and &oo.era#i/e ,or&es &oe2is#3
&o$$abora#ion *as be&o+e a s&*edu$e ,or +os# Euro.ean &o+.anies. Coo.era#ion *as been
e2er&ised as a nor+a$ indus#ria$ #a&#i& #o aid Euro.ean &oun#ries &o.e -i#* $arge gro-#* &os#s
,or .rodu&#s and #o$era#e in#erna#iona$ +ar0e# ,or&es. "*is *as es.e&ia$$1 been #rue in #*e
aeros.a&e indus#r1 -*ere 0e1 #e&*no$ogies are /er1 &$ose$1 $in0ed #o +i$i#ar1 and e&ono+i&
se&uri#1. A# #i+es3 su&* assis#an&es *a/e igni#ed &ri#i&is+s #*a# &oun#ries -ere ,or,ei#ing
e,,e&#i/eness in &er#ain &ases ,or #*e sa0e o, ,un&#ioning in a de,ini#e .rogra+ -i#* o#*er
Euro.eans.
or e2a+.$e3 ran&e go# one su&* &onde+na#ion -*en i# +ain#ained on #*e .rogress
o, #-o edi#ions o, Con&orde and #*e a$$o#+en# o, "ornado e;ui.+en# agree+en#s #o Ger+an
&o+.anies in s.i#e o, #*eir insu,,i&ien# e2.erien&e
:6
. Ho-e/er3 Euro.ean e&ono+is#s *a/e
res.onded b1 asser#ing #*a# Gus# $i0e #*e .rodu&#ion o, air&ra,#s3 $earning &ur/es are a$so
a..$i&ab$e #o &o$$abora#ion; in o#*er -ords3 b1 B.ra&#i&ingD &o$$abora#ions3 &oun#ries are
&a.ab$e o, gradua$$1 +o/ing #o-ard +ore e,,i&ien# &o$$abora#i/e .roGe&#s. Airbus Indus#ries
*as been &onsidered #*e Euro.ean organi<a#ion #*a# *as &o+e &$oses# #o #*is in#egra#ed
a..roa&* #o &o$$abora#i/e .rogra+s. "*e Airbus &o$$abora#ion is uni;ue in #*a# i# *as uni#ed
#*e #*ree +aGor Euro.ean &oun#ries in #*e aeros.a&e indus#r13 ran&e3 Ger+an1 and Grea#
Bri#ain3 #o a signi,i&an# degree on a $arge7s&a$e .rogra+. "*is in#egra#ed &o$$abora#ion is one
o, #*e reasons -*1 #*e re$a#i/e$1 1oung Euro.ean air&ra,# +anu,a&#urer ;ui&0$1 be&a+e a
+aGor &o+.e#i#or #o Boeing. "*is &an a$so be a +aGor .$a1er in de+and ,or a ne- air&ra,#.
Ano#*er ,a&#or3 -*i&* *as *ad a +aGor in,$uen&e on #*e na#ure o, #*e ri/a$r1 be#-een
Boeing and Airbus3 *as been Euro.ean go/ern+en# ,inan&ia$ su..or#s #*a# *a/e .er+i##ed
Airbus #o e2.and ne- #e&*no$ogies
:4
. "*e Airbus Indus#ries &a+e in#o being -i#* #*e
20
Ibid .. 4(
21
S*ad H S*o0ra$$a3 BBoeing ??? Case S#ud13D Synthesis Coalition.
*##.EFFbi#s.+e.ber0e$e1.eduF++&sFb???F+ain.*#+$. (455?)
Boeing VS Airbus 9
generous ,inan&ia$ *e$. o, EU go/ern+en#s
::
. Euro.eans Gus#i,ied #*e subsidies #*a# &o/ered
#*e $aun&*ing &os#s o, #*e ,irs# Airbus +ode$3 #*e A7(663 b1 re$1ing on #*e Bin,an# indus#r1D
argu+en# and #*e +ono.o$1 o, #*e Uni#ed S#a#es in #*e indus#r1. Ho-e/er3 -*i$e Airbus *as
gro-n ,ro+ a s+a$$ ,ir+ in#o a .o-er,u$ +anu,a&#urer e,,e&#i/e$1 &o+.e#ing -i#* Boeing3
subsidies *a/e &on#inued. "*ese subsidies *a/e &aused Airbus #o enGo1 ,ro+ a $ong7#er+
&o+.e#i#i/e ad/an#age3 -*i&* enab$es #*e+ #o a,,ord resear&* and de/e$o.+en# -i#*ou#
*a/ing #o .ass on #*e &os#s #o #*e &us#o+ers.
MaGor Euro.ean &oun#ries8 &on#inuous subsidi<a#ion o, Airbus *as been a 0e1 issue
#*a# *as .u# Boeing a# a dra-ba&0 #o .ar#i&i.a#e in #*e -or$d +ar0e#. re;uen#$1 in &ases o,
argu+en#s &on&erning +aGor &o+.anies in a &on&en#ra#ed business in #*e sa+e &oun#r13 #*e
go/ern+en# +a1 *a/e a $i##$e in#eres# in #*e &on&$usion o, #*e dis.u#es. Ho-e/er3 #*e
&o++er&ia$ air&ra,# business is a g$oba$ indus#r1 -i#* i#s #-o +ain ,ir+s si#ua#ed in #-o
di,,eren# &on#inen#s. In #*is .ers.e&#i/e3 in#erna#iona$ #rade #a0e .ar# in a +aGor ro$e in #*is
indus#r1
:(
. >arge e&ono+ies o, s&a$e as -e$$ as #*e $earning &ur/es in #*e indus#r1 re;uire
.rodu&ers #o $oo0 be1ond do+es#i& +ar0e#s3 re$1ing on e2.or# +ar0e#s #o $o-er #*eir a/erage
.rodu&#ion &os#s. Sin&e &o+.onen#s o, de+and ,or air&ra,#s is $i+i#ed3 #*is s&enario &ou$d
ini#ia#e Boeing #o rea&# b1 ei#*er &rea#ing a +ore s#1$is* or +ore e,,i&ien# .$ane in order #o
s#i$$ &o+.e#e -i#* Airbus.
Ano#*er ,a&#or -ou$d be; in&reasing Ge# ,ue$ &os#s and inade;ua#e in,ras#ru&#ure
de/e$o.+en# in $ess de/e$o.ed &oun#ries are serious obs#a&$es #o &on#inued gro-#*
:9
. %or$d
+ar0e#s are &ri#i&a$ #o bo#* Boeing and Airbus3 and air&ra,# +anu,a&#urers need #o .ene#ra#e
#*ese +ar0e#s in order #o in&rease sa$es as -e$$ as +a0ing air #ra/e$ +ore a&&essib$e #o a
$arger .o.u$a#ion. In addi#ion3 go/ern+en#s -i#* air&ra,# +anu,a&#urers re;uire #*ro-ing #*eir
22
Pa/&ni03 Nina.. B"rade !is.u#es in #*e Co++er&ia$ Air&ra,# Indus#r1.(B$a&0-e$$ Pub$is*ers' Uni#ed =ingdo+
:66:) ;(A
23
Ibid. .. (?
24
%i$$ia+ Co$3 BIndus#r1 S#udiesE Air&ra,#3D The Industrial College of the Armed Forces.
*##.EFF---.ndu.eduFi&a,Findus#r1F:666Fair&ra,#Fair&ra,#.*#+. (:66A)
Boeing VS Airbus
10
su..or# be*ind #*e resear&* and de/e$o.+en# o, subs#i#u#e ,ue$3 su&* as #*e ,abri&a#ion o, Ge#
,ue$ ,ro+ agri&u$#ura$ .rodu&es or /ia &$ean &oa$ #e&*no$og1 in order #o de&rease ,ue$ &os#s.
"*ese /en#ures -i$$ no# +ere$1 .ro+o#e #*e &o+.anies3 in #*e indus#r13 in +a0ing air&ra,#s
+ore $u&ra#i/e in #*e +ar0e#3 bu# #*eir /en#ures -i$$ a$so be ad/an#ageous in o#*er se&#ors
su&* as au#o+o#i/e indus#r1. Conse;uen#$13 bo#* &o+.anies -i$$ +ain#ain #*eir .ursui# o,
budding #e&*no$ogies #*a# o,,er &os# sa/ings and grea#er o.era#iona$ e,,i&ien&1. !e/e$o.+en#
o, air&ra,#s #*a# use &*ea.er ,ue$ is e2.e&#ed #o i++edia#e$1 gain &onsiderab$e ,a/our in #*e
-or$d +ar0e# due #o *ig* -or$d-ide oi$ .ri&es. Hen&e3 air&ra,# .rodu&ers *a/e a genuine
in&en#i/e in #*e de/e$o.+en# o, subs#i#u#e ,ue$ and air&ra,#s -i#* #*e +a&*iner1 #o use su&*
,ue$. "*is de,ini#e$1 a,,e&#s #*e .rodu&#ion o, $ess ,ue$ &onsu+ing and +u&* e,,i&ien# air&ra,#
#o &a#er ,or #*eir rising de+ands.
Ano#*er ,a&#or #*a# &an a,,e&# de+and in #er+s o, bo#* #*e 0e1 .$a1ers3 Airbus and
Boeing3 +a0ing ne- .$anes is #*e as.e&# o, $oo+ing #erroris+ in #*e -or$d. Hig* *iGa&0ing
$e/e$s *a/e been -i#nessed a$$ o/er #*e -or$d. In a re&en# s#ud13 Be,,e&#s o, #*e re&en# #erroris#
a##a&0s in A+eri&a on Virgin A#$an#i&D
:A
3 I# is e/iden# #*a# Ri&*ard Branson8s air$ine3 Virgin
A#$an#i& Air-a1s3 *as su,,ered #errib$1 be&ause o, #*e re&en# #erroris# a##a&0s in A+eri&a.
On&e a .ros.erous and e2.anding air$ine3 Virgin A#$an#i& resor#ed #o a nu+ber o, s#ringen#
+easures -*i&* -ou$d o.#i+is#i&a$$1 &onse;uen&e in #*e &arrier no# on$1 a/oiding a $oss bu#
*e$.ing #*e air$ine in rea&*ing #*e brea0e/en .oin# and idea$$13 #*oug* i+.robab$e3 +a0ing a
.ro,i#.
In #*e re.or#3 i# -as a$so e/iden# #*a# Virgin A#$an#i& *ad de&reased #*e nu+ber o,
,$ig*#s i# o.era#ed. "*is &onse;uen#$1 .ro.osed #*a# #*ere -as a de&rease in de+and; a
&o$$a.se in &onsu+er &on,iden&e and3 &onsis#en# -i#* #*is3 redu&#ion in #*e nu+ber o, ,$ig*#s
#*us di+inis*ing #*e #o#a$ /ariab$e &os#s3 ,or e2a+.$e ,ue$3 ,oods#u,,s3 and air.or# &os#s. I# -as
25
No Au#*or3D E,,e&#s o, #*e re&en# #erroris# a##a&0s in A+eri&a on Virgin A#$an#i&.D Aerosace
Cororation(:66A)
Boeing VS Airbus
11
a$so no#i&eab$e #*a# #*e air$ine *ad #o de&rease i#s -or0,or&e; i# in#ended #o +a0e 43:66
+e+bers o, s#a,, redundan#
:'
. B1 &u##ing #*e di+ension o, i#s .ersonne$3 Virgin A#$an#i& -as
#o redu&e #*e &os# o, $abour. Bo#* o, #*ese #-o redu&#ions .ro.osed #*a# #*e air$ine -as
redu&ing su..$1 in order #o +ee# de&$ining de+and3 #*is is #*e ,unda+en#a$ $a- o, de+and
and su..$1; as de+and in&reases3 so does su..$1; .ri&e is .robab$e #o ,a$$. As de+and
de&reases3 so does su..$1; .ri&e is $i0e$1 #o in&rease. Be#-een #*is .eriod and #*e re&ession o,
:66)3 #*e air$ine a$so *ad #o re#ra&# a$$ Virgin A#$an#i& orders o, a&;uisi#ions ne- air&ra,#s #o
i#s su..$iers3 Boeing. In $ine #o #*is3 #*ere -i$$ be no sur.rise i, ei#*er Boeing or airbus in
,u#ure -ere #o &rea#e .$anes3 -*i&* -ere burg$ar .roo, #o &urb su&* a&#s3 and in #*e end
.ro+o#e de+and b1 in&reasing sa,e#13 so &us#o+ers ,ee$ se&ure. On #*e o#*er *and3 #*is issue
o, #erroris+ &ou$d in&rease de+and ,or +i$i#ar1 .$anes #o &oun#er #*e a&#s. "*e 0e1 .$a1ers
&ou$d a$so be in&$ined #o &rea#e .o-er,u$ and e,,i&ien# Ge#s ,or su&* .ur.oses.
Co++er&ia$ air&ra,# indus#r1 *as be&o+e one o, #*e 0e1 g$oba$ indus#ries o/er #*e
de&ades a,#er %or$d %ar II. I#s e$e/a#ed &on&en#ra#ion is a sign o, #*e e&ono+ies o, s&a$e
engrossed in #*e business. As Boeing and Airbus &arr1 on #*eir d1na+i& ri/a$r1 #o &on#ro$ #*e
-or$d +ar0e#3 #*e1 *a/e &on,ron#a#ions #*a# #*e1 re;uire #o &on;uer3 bo#* in #er+s o, ri/a$r1
-i#* one ano#*er3 bu# a$so in #er+s o, uni/ersa$ di,,i&u$#ies. Go/ern+en#s a$so re;uire #o -or0
#oge#*er in +a0ing .o$i&ies #*a# -ou$d aid #*e e2.ansion o, #*e indus#r1 as a -*o$e and
en&ourage &o+.e#i#ion. On$1 b1 sur+oun#ing #*ese &*a$$enges3 -i$$ #*e business *a/e
&on#inued de/e$o.+en# and a+.$i,ied de+ands ,or #*eir brands in #*e -or$d +ar0e#.
Par# B; S#ra#egi& +anage+en#
In#rodu&#ion
26
ibid
Boeing VS Airbus
12
A/ia#ion ,ore&as#ers are ,a+i$iar -i#* #*e di/erse ou#$oo0s o, +ore ,re;uen&ies agains#
+ore &a.a&i#1. %i#* air&ra,# .rodu&ers .ro,,ering air&ra,# -i#* +ore range bu# a$so -i#* +ore
&a.a&i#13 air$ines are a# #*e .resen# in,$uen#ia$ in de#er+ining -*e#*er #*e *ub and s.o0e
/a$ues or #*e .oin# #o7.oin# idea is #*e bes# a..roa&* #o ,o$$o-. "*e o#*er s#ra#egi&
+anage+en# +e#*odo$ogis#s in&$ude .es#e$ ana$1sis and Por#er A ,or&es3
A$#ering ,a&#ors and #rends -i#*in #*e air$ine business does no# on$1 re/o$u#ioni<e
air$ines3 bu# rou#e arrange+en#s .$us #*e de+and a##ribu#es o, ,$ee#s; +a0ing #*e 4647 #o 4)67
sea# aero.$ane #*e se&#or o, in#eres# in #*e ,u#ure
:?
. I# is a$so e/iden# #*a# Air$ine a$$ian&es are
s*a.ing in#o #*e ne2# e$e+en# in &o$$abora#ion. In +an1 -a1s3 #*ese &o$$abora#ions -i$$ be #*e
air$ine. "ru$13 #*e air$ine a,,i$ia#es -i$$ be&o+e #*e $i,#7&on#ribu#ors3 Co+air or Mesaba; are
non7brand $i,# .ro/iders #o !e$#a
:)
. "*a# deno#es #*a# #*e in#en# s*ou$d be #o $ine u. ones
&o++uni#1 -i#* en#r1 #o a$$ #*ree in#erna#iona$ air$ine &oa$i#ions. As #*is &on#inues3 #*ere -i$$
be a s#o. #o an A+eri&an3 Uni#ed3 or US Air-a1s .rodu&# in su..or# o, an in#erna#iona$
a$$ian&e #rade+ar0. In ,a&#3 #*e &oa$i#ion arrange+en# is en#ire$1 s*i,#ing air$ine +ar0e# and
,$ee# s#ra#egies as is e/iden# in Airbus indus#ries
:5
.
On #*e issue o, .os# re&ession3 #*e air$ine indus#r1 is .roGe&#ed #o *a/e a s$o- re&o/er1
#*a# -i$$ a$so see #*e indus#r1 &on#inued de&$ine #*roug* :646. "*e +ain reason being #*a#3
#*e de+and ,or air&ra,#s -i$$ re#urn ,as#er #*an &a.a&i#1. "*is -ou$d a$+os# &er#ain$1 be a
good #*ing sin&e #*a# -ou$d signi,1 rise in air,ares.
A&&ording #o a ,ore&as#3 i# is indi&a#ed #*a# bo#* en#ire .assengers and en.$ane+en#s
-i$$ be go do-n :.'I and :.5I3 &orres.onding$13 #o A9)3('6 and ?:?3('5 in :649
(6
. Hub
27
Si+onson3 G. R. 45'6. B"*e !e+and ,or Air&ra,# and Air&ra,# Indus#r13 456?745A).D The
Journal of Economic )istory, :6 (()E ('4.
28
Ibid (''
29
Si+onson3 G. R. 45'6. B"*e !e+and ,or Air&ra,# and Air&ra,# Indus#r13 456?745A).D The
Journal of Economic )istory, :6 (()E (?'.
30
Si+onson3 G. R. 45'6. B"*e !e+and ,or Air&ra,# and Air&ra,# Indus#r13 456?745A).D The
Journal of Economic )istory, :6 (()E ('47():.
Boeing VS Airbus
13
si#es -ou$d a$so dro. b1 :.4I -*i$e $arge non7*ubs -i$$ dro. b14.9.er&en#age. Ho-e/er3 #*e
.rin&i.a$ $oss -i$$ be in #*e regiona$ +ar0e#s3 -*i&* -i$$ ,a$$ b1 AI.
(4
In&$uded in #*e ,ore&as#
-as a$so a $i0e$i*ood o, a &o+.$e#e$1 ne- ,$ee# e&ono+i&s .!eno#ing "*a# Boeing8s ?9? +a1
be re.$a&ed b1 #*e s+a$$er A((6
(:
3 "*a# ERJ749A -i$$ see +ore o, #*e deser#3 "*a# C7Series
+ig*# be #*e ne- ?(? and #*a# (97sea# #urbo.ro. -i$$ ne/er re#urn on&e i# ge#s .ar0ed. In
addi#ion3 No#ed -as #*a# #*e re7,$ee#ing *as a$read1 s#ar#ed3 a$bei# s$o-$1
((
. In ,a&#3 i#
ar#i&u$a#es3 $ess #*an ?67sea# air&ra,# are &urren#$1 e2.erien&ing #*e sa+e de&$ine in de+and as
#*e eig*#3 4A3 453 (6 and A6 sea#ers *a/e a$read1 endured
(9
.
In regards #o Regiona$ a/ia#ion3 -*e#*er de$inea#ed b1 air$ine or .$ane3 i# a..ears #o
*a/e in genera$ a deso$a#e ou#$oo03 a&&ording #o ano#*er ,ore&as#
(A
. Bo1d Grou. In#erna#iona$
.er&ei/es an in#erna#iona$ de+and ,or 4:3)9? air$ines be#-een :646 and :645 -i#* C*ina3 #*e
nu+ber #-o in#erna#iona$ +ar0e#3 needing (3:5: ne- aero.$anes
('
. I# a$so obser/es #*e
broadened .resen#a#ion &o/ers o, ne- air$ines .ro+.#ing -*a# is e2.ressed a &a#egor1
o/er$a.
(?
. As ,or subs#i#u#ion e;ui.+en#3 #*e1 -i$$ &o+e in #*e :6467:64( .eriod
()
.
"urbo.ro.s -i$$ de/e$o. in de+and bu# s#i$$ be res#ri&#ed3 Bo1d .oin#ed ou#
(5
3 and adding #*a#
de+and ,or $o-er &a.a&i#1 aero.$anes -i$$ go on #o de&$ine. In :6443 #*e en#ire ,$ee# -i$$
rea&* 4)36:( #ra/e$$er air$iners and -i$$ de/e$o. #o :(3?54 b1 #*e end o, :645 ,or a ne#
31
Vi&0i > Go$i&*3 Bro+ Co+.e#i#ion #o Co$$abora#ionE "*e C*a$$enge o, Co++er&ia$7C$ass Air&ra,#
Manu,a&#uring3D International *rgani+ation, 9' (9) E( 455:)E 564.
32
"*e Airbus A,,- is a $arge7&a.a&i#13 -ide7bod13 #-in7engine3 +ediu+7 #o $ong7range &o++er&ia$ .assenger
Ge# air$iner
33
Vi&0i > Go$i&*3 Bro+ Co+.e#i#ion #o Co$$abora#ionE "*e C*a$$enge o, Co++er&ia$7C$ass Air&ra,#
Manu,a&#uring3D International *rgani+ation, 9' (9) E( 455:) 5(:.
34
ibid
35
Vi&0i > Go$i&*3 Bro+ Co+.e#i#ion #o Co$$abora#ionE "*e C*a$$enge o, Co++er&ia$7C$ass Air&ra,#
Manu,a&#uring3D International *rgani+ation, 9' (9) E( 455:) 5(A
36
Bo1d in#erna#iona$ grou. (:666)
37
ibid
38
ibid
39
ibid
Boeing VS Airbus
14
aug+en# o, :9.:I or A3?') air&ra,#. Subs#i#u#ion -i$$ e2.$ain A:.4I o, #*e de+and a##aining
'3')) air&ra,# -*i$e de/e$o.+en# -i$$ Gus#i,1 9?.5I or '34A5 air$iners
96
.
In ano#*er ,ore&as# on &a#egor13 #*e narro- bodies be#-een 4:' and 4)6 sea#s -i$$
e2.$ain #*e +a2i+u+ de+and a# 93:): air&ra,# or .re&ise$1 a #*ird
94
. "*e ,ore&as# .redi&#s
4)6K sea#s re.resen#ing :6.(I o, de+and or :3'44 air&ra,#
9:
. as&ina#ing$13 Ma$ian sees #*e
4647 #o 4:A7sea# as gaining 45.'I o, de+and or :3A:4 air&ra,#
9(
3 -*i&* is .re&ise$1 #*e s-ee#
s.o# ,or #*e C7Series.i# &on#inues #o .redi&# #*a# Se/en#1 ,i/e #o 4667sea# aero.$anes -i$$
re.resen# 4A.9I or :3446 air&ra,#s -*i$e '47 #o ?97sea#ers -i$$ obser/e a de+and ,or 4366)
air$iners3 or ?.)I. "*e regiona$7&abin .$anes -i$$ be +ere$1 :.AI o, #*e de+and a# (4A
aero.$anes o/er #*e ,ore&as# in#er$ude. In addi#ion3 Nor#* A+eri&a -i$$ *a/e #*e u..er+os#
de+and3 *o-e/er3 a# a di+inis*ed .er&en#age a# on$1 (6I or (3)A4 .$anes3 subse;uen#$13
C*ina a# :A.AI or (3:): and Euro.e a# :(.'I or (36(:
99
. A,ri&a -i$$ be .osi#ioned a# '.(I o,
#*e +ar0e# a# on$1 )46 Ge#s as Asia and >a#in A+eri&a a&&oun#ing ,or a# 5.9I or 43:6' air&ra,#
and A.:I or ''' air&ra,# res.e&#i/e$1.
"*e *uge #rans,or+a#ions #*e indus#r1 is e2.erien&ing; #*a# is #*e s#andard +e#*od o,
using *is#ori&a$ da#a #o ,ore&as# #*e ,u#ure no $onger a..$ies; is a$so +aGor ,a&#or. E2is#ing
#ra,,i& and OL! a$$o#+en# are in/en#ions o, &urren# ser/i&e $e/e$s3 and no# air ser/i&e
&onsu+er de+and. Air$ine ser/i&e #*a# -as sus#ainab$e 46 1ears ago is ,re;uen#$1 ou# o, rea&*
#oda1. ProGe&#ions o, .o-er,u$ $ess7#*an7?A7sea# de+and are a##ra&#i/e3 bu# in&orre&#. No
&o+.an1 is +anu,a&#uring #*e+3 a$bei# de+and. E&ono+i&s *a/e eradi&a#ed #*e 4A3 453 and
40
ibid
41
Si+onson3 G. R. 45'6. B"*e !e+and ,or Air&ra,# and Air&ra,# Indus#r13 456?745A).D The
Journal of Economic )istory, :6 (()E ('4.
42
Si+onson3 G. R. 45'6. B"*e !e+and ,or Air&ra,# and Air&ra,# Indus#r13 456?745A).D The
Journal of Economic )istory, :6 (()E ('4.
43
Si+onson3 G. R. 45'6. B"*e !e+and ,or Air&ra,# and Air&ra,# Indus#r13 456?745A).D The
Journal of Economic )istory, :6 (()E ('5.
44
Si+onson3 G. R. 45'6. B"*e !e+and ,or Air&ra,# and Air&ra,# Indus#r13 456?745A).D The
Journal of Economic )istory, :6 (()E (?6.

Boeing VS Airbus
15
(6 sea#ers in&$uding an1 o#*er air&ra,# be$o- 7?67sea# &a.a&i#1
9A
. "*e .ro.osed de+and ,or ?6
#o 466 sea#ers is doub#,u$. "*e ne- e&ono+i&s +a1 +a0e big air&ra,# +ore se&#or7e,,i&ien#
and in ,$ee# e,,i&ien#.
9'
In ano#*er .roGe&#ion3 #*e arri/a$ o, #*e ?67 #o 567sea# Mi#subis*i $o&a$ .$ane3 #*e ?A7
#o 5A7sea# Su0*oi Su.er Ge# and #*e E+braer E7Je#s a# ?67 #o 4:6 sea#s3 brings #*e
.ra&#i&abi$i#1 o, #*a# se&#ion in#o ;ues#ion
9?
. E+braer is b1 no- in #*e +ar0e# .rodu&#i/e$1
and i# $ingers #o be seen -*e#*er #*e o#*er #-o -i$$ be signi,i&an#$1 e&ono+i&. Boeing is a$so
,ore#e$$ing a +ar0e# ,or :466 RJs3 #*oug*; no &onsu+er is $i0e$1 #o in/es# in an air&ra,# on$1
#o se$$ #*e+ ,or M:6 +i$$ion
9)
. "*e re.or# a$so i$$us#ra#ed #*e &o+.$e2i#1 o, de,ining regiona$
Ge#s -*en #*e1 are being +anaged in su&* +ar0e#s a# Hous#on or A#$an#a and C*i&ago. "*e
di+ension o, #*e air&ra,# *as no#*ing #o do -i#* $o&a$ +ar0e#s and one des&ribes i# as $ess
#*an 446 sea#s #*en #*e ?6? -as an RJ
95
a$ong -i#* #*e A(4). "*e indi&a#ion is #*e idea o, #*e
RJ -as a de/e$o.+en# Ge# ,or #*e regiona$ air$ines and i# is no# re$a#ed si<e3 +ar0e#s3 or
.rodu&er.
Ne- &o+.e#i#ors &ou$d &*ange #*e 4647 #o 4)67sea# ,ie$d. A de+and ,or :3?66 air&ra,#
be#-een :64' and :645 in #*is grou. is .redi&#ed -i#* C*ina a&&oun#ing ,or A:A
A6
. "*ere is a
good .ros.e&# #*a# #*e C*ina +ar0e# -i$$ be &on#ri/ed #o bu1 on$1 C*inese air$iners +a0ing i#
e2#re+e$1 un&er#ain #*a# i# -i$$ a&#ua$$1 be a .ar# o, g$oba$ de+and. "*a# a$so brings in#o
;uer1 #*e +anu,a&#urer &onGe&#ures #*a# &oun# C*ina as .ossib$e &us#o+ers in&$uding
E+braer3 -*i&* *as &$ai+ed #*a# C*inese .rodu&#ion -i$$ no# be ab$e #o +ee# de+and3 a# $eas#
in #*e s*or# #er+
A4
.
45
Go$i&*3 Vi&0i >. 455:. Bro+ Co+.e#i#ion #o Co$$abora#ionE "*e C*a$$enge o, Co++er&ia$7
C$ass Air&ra,# Manu,a&#uring.D International *rgani+ation, 9' (9)E 5(9.
46
Vi&0i > Go$i&*3 Bro+ Co+.e#i#ion #o Co$$abora#ionE "*e C*a$$enge o, Co++er&ia$7C$ass Air&ra,#
Manu,a&#uring3D International *rgani+ation, 9' (9) E( 455:) 5(A
47
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48
ibid
49
or #*e .ur.oses o, #*is ,ore&as# an RJ is an ERJ or CRJ on$1
50
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51
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Boeing VS Airbus
16
"*e #rend is a$so .er&ei/ed as #o-ards a $arger and +ore &os#$1 air&ra,# .us*ing #*e
re/enue bar e$e/a#ed #*an i# is &urren#$1. In #*e ear$1 45)6s3 #*e B74566s3 #*e C55s3 EMB7
4:6s a$$ +ade a $o# o, +one1. In #*e 4556s3 #*e +inia#ure #urbo.ro.s be&a+e un.ro,i#ab$e and
-ere subs#i#u#ed b1 #*e RJs -i#* ne- +ar0e# sub+issions no# #o subs#i#u#e #urbo.ro.s. "*e
ne- d1na+i& RJs are on #*e /erge o, e2i#ing3 as are #*e assign+en#s #*e1 are o.era#ing
A:
. Air
ser/i&e d1na+i&s *a/e .ri+ari$1 &*anged sin&e #*e e&ono+i&s o, #*e +a&*iner1 *as
#rans,or+ed and #*ere are no .ros.e&#i/e e&ono+i& subs#i#u#es ,or $esser #urbo.ro.s or RJs on
#*e .ers.e&#i/e. "*e s+a$$es# air$ine in &ir&u$a#ion in #*e %es# is ?6 sea#s and #*e1 are
e2.ensi/e. "*ese ne- aero.$anes &an ,$1 $onger -*i$e Airbus is $eading #*e -a1 in #*e /er1
*uge &a.a&i#1 se&#or. Airbus asser#s #*ere is s#i$$ $i,e in #*e *ub and s.o0e s1s#e+ .ar#i&u$ar$1
be#-een $arge &i#1 .airs be#-een Asia3 Euro.e3 and Nor#* A+eri&a
A(
.
Airbus and Boeing *a/e dissi+i$ar ou#$oo0s on #*e in#erna#iona$ +ar0e# ,ore&as#s.
Ho-e/er3 on so+e .oin#s bo#* air&ra,# .rodu&ers s*are #*e sa+e ana$1sis. In#erna#iona$ #ra/e$
de.ends on #*e ,inan&ia$ s1s#e+ and #*e e&ono+1. As #*e Gross !o+es#i& Produ&# (G!P)
A9
in
+an1 &oun#ries is gradua$$1 es&a$a#ing and $ibera$i<a#ion o, +ar0e#s aug+en#s #*e
a&&essibi$i#13 #*e air #ra,,i& e2.ansion is gradua$$1 s#abi$i<ing .G$oba$i<a#ion and in#erna#iona$
#rade &an ini#ia#e +ore -ea$#*3 -*i&* in #urn *as i#s ou#&o+e on in#erna#iona$ #ra/e$.
!i,,eren&es are seen be#-een #*e +aGor .$a1ers -*en Boeing .roGe&#s an annua$
.assenger #ra,,i& in&rease o, 9.)Ibe#-een :66A and :6:93 &on#radi&#ing Airbus8s .roGe&#ion
o, a s$ig*#$1 *ig*er annua$ in&rease o, A.(I be#-een :669 and :6:(
AA
. As Boeing ,oresees an
in#erna#iona$ .assenger ,$ee# o,(A3 (66 air&ra,# b1 :6:93 Airbus sees an in&rease #o :43?A5
air&ra,# b1 :6:(
A'
. Boeing a$so .redi&#s abou# ::I -i$$ be in #*e +idsi<e #-in ais$e &a#egor1
52
S#ur+e13 S. G. 45'9. BCos# Cur/es and Pri&ing in Air&ra,# Produ&#ion.D The EconomicJournal, ?9 (:5')E 5AA
53
S#ur+e13 S. G. 45'9. BCos# Cur/es and Pri&ing in Air&ra,# Produ&#ion.D The EconomicJournal, ?9 (:5')E 5AA
54
G!P is #*e a+oun# o, goods and ser/i&es .rodu&ed in a 1ear3 in a &oun#r1.
55
He$en Mi$ner and !a/id @o,,ie3 BBe#-een ,ree #rade and .ro#e&#ionis+E s#ra#egi& #rade .o$i&1 and #*e #*eor1
o, &or.ora#e #rade de+ands.D International *rgani+ation,9( (:) (45)5)E :'4
56
S#ur+e13 S. G. 45'9. BCos# Cur/es and Pri&ing in Air&ra,# Produ&#ion.D The EconomicJournal, ?9 (:5')E 5?)
Boeing VS Airbus
17
su&* as #*e ?)?and A(A6 -*i$e #*e ?9? and $arger air&ra,# -i$$ on$1 #a0e u. 9I o, #*e #o#a$
,$ee# a&&ording #o Boeing
A?
.
In addi#ion #o #*e rise in nu+ber o, aero.$anes3 Airbus a$so .roGe&#s a boos# in #*e
nu+ber o, sea#s .er air&ra,# in #*e .ro2i+i#1 o, :6I #*a# is ,ro+4)4 #o :4A sea#s
A)
3 in
an#i&i.a#ion o, #*e 1ear :6:(. A&&ording #o Boeing3 in #*e ne2# :6 1ears3 Cargo aero.$ane
nu+bers -i$$ #-o,o$d #o (.A(6 ,u$$ &arriers .roGe&#ing a #1.i&a$ gro-#* o, '.:I
A5
. Airbus a$so
obser/es #*e dis#ribu#ion o, ,u$$ ,reig*#ers aug+en# #o (34(5 ,u$$ ,reig*#ers
'6
3 an in&rease o,
A.5I in #*e sa+e .eriod. "*e /aria#ion is #*e .ros.e&# /ision #*a# Boeing and Airbus *a/e3
.oin#7#o7.oin# /ersus *ub L s.o0e.
Boeing and Airbus are seeing #*e need ,or $onger dis#an&es being ,$o-n b1 #-in7
engine air&ra,#. %i#* #*is #rend3 #*e1 *o.e #o o.era#e +ore non7s#o. ,$ig*#s be#-een +ore &i#1
.airs; Boeing and Airbus are a$so *o.ing a/ia#ion au#*ori#ies -i$$ endorse e/en *ig*er
E"OPS
'4
e/a$ua#ions #*a# -ou$d in&rease su&* air&ra,# .o#en#ia$. E"OPS is .ar#i&u$ar$1 /i#a$
,or .oin#7#o7.oin# #ra,,i& -*ere Boeing #enders #*e ?)?3 ???3 and Airbus3 #*e A((6 and
A(A6.
':
A# .resen# Boeing e+bra&es #*e re&ord ,or #*e .re+ier E"OPS s&ore -i#* :6?
+inu#es E"OPS ;ua$i,i&a#ions on #*eir ??? +ode$
'(
. On #*e o#*er *and3 Airbus *as i#s ,our7
engine A(963 -*i&* needs no E"OPS ra#ing
'9
. "*is +a0es Airbus s#ri0ing ,or air$ines #*a# do
no# desire E"OPS. Airbus is &o+.e#ing o.en$1 -i#* Boeing8s ?)? and #*e ??? -i#* #*e A(A63
57
He$en Mi$ner and !a/id @o,,ie3 BBe#-een ,ree #rade and .ro#e&#ionis+E s#ra#egi& #rade .o$i&1 and #*e #*eor1
o, &or.ora#e #rade de+ands.D International *rgani+ation,9( (:) (45)5)E :':
58
Airbus -ebsi#e
59
He$en Mi$ner and !a/id @o,,ie3 BBe#-een ,ree #rade and .ro#e&#ionis+E s#ra#egi& #rade .o$i&1 and #*e #*eor1
o, &or.ora#e #rade de+ands.D International *rgani+ation,9( (:) (45)5)E :'A
60
u$$ reig*#ers are &argo .$anes
61
E2#end "-in7engine O.era#ions (E"OPS) is #*e ru$e #*a# i+.$ies a #-in7engine air&ra,# +us# be ab$e #o $and
-i#*in 56 +inu#es i, one o, #*e #-o engines ,ai$s. Ob#aining #*is ra#ing re;uires #*e &er#i,i&a#ion o, #*e re$iabi$i#1
o, #*e air,ra+eFengine &o+bina#ion as -e$$ as #*e air$ine8s ,$ig*# o.era#ions +ain#enan&e.
62
He$en Mi$ner and !a/id @o,,ie3 BBe#-een ,ree #rade and .ro#e&#ionis+E s#ra#egi& #rade .o$i&1 and #*e #*eor1
o, &or.ora#e #rade de+ands.D International *rgani+ation,9( (:) (45)5)E :'(
63
>and$er3 Mar0. :66'. BAirbus Edge in H6A Sa$es Co+es %i#* an As#eris0.D The .e/ 0or1 Times. Januar1 4).
64
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Boeing VS Airbus
18
#*eir ne-es# #-in7engine aero.$ane #*a# -i$$ a$so +ar0 ne2# genera#ion engines &o+.arab$e #o
#*ose .resen#ed on #*e ?)?.
%i#* A:5 aero.$anes ordered so ,ar
'A
3 Boeing *as &on,ir+ed #*eir ??? air&ra,# ,a+i$1
*as so ,ar been an i++ense su&&ess in #*e +ediu+ #o $ong7range .oin#7#o7.oin# #ra/e$. "*e
$a#es#??? +ode$3 #*e ???7:66>R is ab$e o, &arr1ing (64 #ra/e$$ers u. #o 539:6 n+. I#s ri/a$3
#*e ,our7engine A(967A66 &an ,err1 (4( .assengers on a dis#an&e o, 53666 n+
''
.
Airbus is a$so assessing a *ig*er gross -eig*# (HG%)
'?
/ersion o, #*e A(967A66 and
7'66 #o a+.$i,1 i#s range +ore. %i#* +ore #*an :66 ?)?s re;ues#ed so ,ar3 #*e ou#$oo0 o, #*is
a$$7ne- air&ra,# is $oo0ing *o.e,u$. "*e ?)?7)66 -i$$ en&o+.ass a &a.a&i#1 o, ::( .assengers
in a #*ree7&$ass design and *as a range o, )3A66 n+. "*e e$onga#ed ?)?7566 is e2.e&#ed #o
&arr1 :A5 .assengers o/er #*e sa+e range a&&ording #o Boeing
')
. Airbus8s A(A67)66 -i$$ #a0e
u. #o :A( in a #*ree7&$ass design -i#* a range o, )3)66. "*e e$onga#ed A(A67566 &an &arr1
(66 .assengers in a #*ree7&$ass $a1ou# -i#* a range o, ?3A66n+.
A&&ording #o Airbus8s -ebsi#e3 #*ere are ,ir+ orders ,or :) A(A6s ,ro+ #*ree air$ines
-i#* &o++i#+en#s signed b1 se/en o#*er air$ines3 in&$uding >easing &o+.anies and an
undis&$osed &us#o+er3 ,or 44A A(A6s
'5
. Board a..ro/a$ *as a$so been .ro/ided on #*e order
,or '6 A(A6s b1 a Midd$e Eas#ern air$ine is s#i$$ .ending. %*i$e3 Airbus a$so .ro,,ers i#s u$#ra
$ong range A(967A663 #*is ,our engine air&ra,# is ge##ing +oun#ing &o+.e#i#ion ,ro+ Boeing8s
e2&eeding$1 #riu+.*an# ??? in #*e s#ru&#ure o, #*e???7:66>R 3-*i&* is ge##ing +ore orders
$a#e$1 as in#eres# ,ro+ air$ines ,or #-in7engine o.era#ions is es&a$a#ing
?6
. %i#* #*e /ague$1
*ig*er range &oa$es&ed -i#* $o-er o.era#ing &os#s3 #-o engines ins#ead o, ,our3 Boeing s#i$$
65
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66
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67
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He$en Mi$ner and !a/id @o,,ie3 BBe#-een ,ree #rade and .ro#e&#ionis+E s#ra#egi& #rade .o$i&1 and #*e #*eor1
o, &or.ora#e #rade de+ands.D International *rgani+ation,9( (:) (45)5)E :'',
69
>and$er3 Mar0. :66'. BAirbus Edge in H6A Sa$es Co+es %i#* an As#eris0.D The .e/ 0or1 Times. Januar1 4).
70
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Boeing VS Airbus
19
*as an ad/an#age. More air$ines are seeing #*e bene,i#s o, o.era#ing #-in7engine air&ra,# o/er
$onger dis#an&es.
In addi#ion #o #-in7engine o.era#ions3 Airbus is a$so -or0ing #o-ards ge##ing i#s
$arges# air&ra,#3 #*e A()67)663 in#o &o++er&ia$ ser/i&e. So+e see #*e /o$u+e o, #*e A()6 as
#*e dra-ba&0 o, #*e A()6 -*i$e o#*ers see #*e $arger nu+ber o, .assengers &arried in #*e
A()6 as an ad/an#age. Boeing $aun&*ed i#s s+a$$er bu# ne- in/en#ion ??? on No/e+ber #*e
4A#*. "*ese $arge air&ra,# are +ore s#ri0ing ,or #*e busier rou#es be#-een &ro-ded air.or#s.
%i#* #*e ?9?7)3 Boeing is in#ending #o ,i$$ a# #*e ga. be#-een #*e ???FA(96FA(A6 and #*e
A()67)66.%i#* orders ,or 4) ne- genera#ion ?9? ,u$$ ,reig*#ers and nego#ia#ions s#i$$
ongoing -i#* se/era$ &us#o+ers3 Boeing is &on,iden# #*e ne- genera#ion ?9? -i$$ be&o+e a
su&&ess
?4
. "*e Airbus doub$e de&0 A()6 -i$$ be ab$e #o &arr1 AAA .assengers in a #*ree7&$ass
$a1ou# o/er a dis#an&e o, )3666 n+. "*e ?9?7) -i$$ &arr1 (9 +ore sea#s in a #*ree7&$ass $a1ou#
and &arr1 49 .er&en# +ore &argo &o+.ared #o #oda18s ?9?7966. "*e range o, #*e ?9?7) -i$$ be
si+i$ar #o #*a# o, #*e A()67)66
?:
.
%*i$e bo#* Boeing and Airbus see an aug+en# in #*e nu+ber o, air&ra,# a&&ording #o
#*eir +ar0e# ,ore&as#s3 Airbus a$so sees in#ensi,i&a#ion in #*e nu+ber o, sea#s .er air&ra,#3
-*i&* -ou$d e2.$i&a#e #*eir de/e$o.+en# o, #*e $arger A()6. On #*e air &argo side3 bo#*
Boeing and Airbus *a/e an ana$ogous /ision -i#* Boeing seeing an in&rease in #*e nu+ber o,
,u$$ ,reig*#ers o, A.5 I and Airbus seeing an in&rease o, '.: I ,or ,u$$ ,reig*#ers. "*ese
nu+bers -ou$d no# be as s*o&0ing as #*ese +ar0e# ,ore&as#s are &$ose$1 $in0ed #o #*e
dissi+i$ar /ie-s Boeing and Airbus *a/e.
I# is $u&id #*e A()6 is #*e rig*# reso$u#ion ,or o/er&ro-ded air.or#s in Euro.e3 Asia3
and Nor#* A+eri&a. Air$ines -i$$ *a/e no a$#erna#i/e o#*er #*an #o .resen# +ore sea#s .er
71
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He$en Mi$ner and !a/id @o,,ie3 BBe#-een ,ree #rade and .ro#e&#ionis+E s#ra#egi& #rade .o$i&1 and #*e #*eor1
o, &or.ora#e #rade de+ands.D International *rgani+ation,9( (:) (45)5)E :'5
Boeing VS Airbus
20
air&ra,# #o #*ese o/er&ro-ded air.or#s. E/en #*oug* #*is +ar0e# se&#or is no# /er1 big 1e#3 #*e
.ro.osed #ra,,i& e2.ansion o/er #*e &o+ing 1ears +a1 +a0e #*e A()6 +ore a##ra&#i/e o/er
#*e 1ears.
Si+u$#aneous$1 #*e re$a#ed di+ensions o, #*e Ne2# Genera#ion ?9? &on#ras#ed #o #*e
&urren# ?9?79663 +a1 be +ore a##ra&#i/e #o air$ines. Poo$ed -i#* #*e ?)?7based #e&*no$ogies
and .$an3 #*e Ne2# Genera#ion ?9? be&o+es a##ra&#i/e #o air$ines #*a# do no# au#o+a#i&a$$1
need #*e &a.a&i#1 and #*e si<e o, #*e A()6. In #*is re/eren&e3 #*e ne- ?9? -i$$ ,ind i#s *o+e
be#-een #*e???FA(96 and #*e A()6. "oge#*er3 #*e ad/an&es regarding E"OPS3 .oin#7#o7
.oin#3 and *usband7s.o0e in #*e ,u#ure are ,a&#ors #*a# *a/e i#s s-a1 on #*e a&&o+.$is*+en#
o, #*e ?)?F??? and #*eA((6FA(A6.
Air$ines &an a$so de&ide #o ,$1 E"OPS ,ree; .i&0ing Airbus8s A(96. E/en so3 #*e
aero.$ane .rodu&er -i#* #*e *ig*es# E"OPS ra#ing -i$$ *a/e 0e1 ad/an#age o/er i#s ri/a$.
Bo#* $arger &a.a&i#1 and +ore ,re;uen&ies are a##ra&#i/e reso$u#ions. "*e a&&o+.$is*+en# o,
-*i&* one -i$$ be #*e be##er reso$u#ion de.ends on #*e $o&a#ion -*ere #*e air$ines and air.or#s
,ind #*e+se$/es in o/er #*e 1ears and #*e de/e$o.+en# o, E"OPS ra#ings ,or #-in7engine
air&ra,#
?(
. O/er&ro-ded air.or#s &an use $arger air&ra,# bu# a# #*e sa+e #i+e3 #*e .ressure #*ese
o/er&ro-ded air.or#s are e2.erien&ing &an be in&o+.$e#e$1 re+o/ed b1 dis#ribu#ing +ore
,$ig*#s ,ro+ neig*bouring air.or#s. "*e a&&o+.$is*+en# o, .oin#7#o7.oin# and *ub7and7s.o0e
de.ends on +ar0e# and e&ono+i&a$ de/e$o.+en#s a$$ o/er #*e -or$d #*a# -i$$ es#ab$is* #*e
a&*ie/e+en# or ,ai$ure o, #*ese ne- genera#ion air&ra,# and #*eir ranging &a.abi$i#ies.
As i# regards Por#er A ana$1sis o, Boeing and Airbus3 "*rea# o, Ne- En#ran&e is
&onsidered. As seen3 #*e #*rea#s are >o-. I# is no# si+.$e ,or ne- &o+.anies #o .ene#ra#e #*e
+ar0e# o, de/e$o.ing $arge &o++er&ia$ air.$anes. As seen3 Subs#i#u#es are a$so >o-. "*ere
73
>and$er3 Mar0. :66'. BAirbus Edge in H6A Sa$es Co+es %i#* an As#eris0.D The .e/ 0or1 Times. Januar1 4).
Boeing VS Airbus
21
are nu+erous subs#i#u#es a/ai$ab$e $i0e s*i.3 and $and #rans.or#. Ho-e/er3 #*ese a$#erna#i/es
&anno# &o+.e#e -i#* air #rans.or# sin&e #*e .ri&e7.er,or+an&e #ransa&#ion in #*is &ase is no#
s#ri0ing. In addi#ion3 Bargaining Po-er o, Su..$iers is a$so dee+ed as >o- #o Modera#e. "*e
su..$ier se&#or in #*is indus#r1 is se&#ioned3 so i# is &o+.ara#i/e$1 si+.$e ,or #*e air&ra,#
.rodu&ers #o s-i#&* su..$iers. Ho-e/er3 so+e .ar#s en#ai$ a *ig* +easure o, &on&en#ra#ed
0no-$edge and are dis#inguis*ed ,ro+ o#*ers $i0e #*e engine3 #*us +oun#ing bargaining
.o-er o, #*is grou.. In&$usi/e in #*e ,a&#ors is #*e Bargaining Po-er o, Cus#o+ers3 -*i&* is
*ig*. "*ere are &o+.ara#i/e$1 ,e- bu1ers o, *uge &o++er&ia$ air.$anes. In addi#ion3 #*e
air$ines #*a# bu1 air&ra,# +a0e $o- .ro,i#s #*us +a0ing #*e+ .ri&e res.onsi/e. A$so3 ea&*
&$ien# signi,ies a *uge seg+en# o, #*e .rodu&er8s &a#egories. ina$$1 #*e Co+.e#i#i/e Ri/a$r13
-*i&* is rea$$1 *ig*. Boeing and Airbus &o+.e#e .o-er,u$$1 in #*e *uge .assenger Ge# air$iner
+ar0e#. Sin&e indus#r1 gro-#* is s$o-3 bo#* &o+.anies ,ig*# ,or +ar0e# s*are. So as .er #*is
.or#er A ana$1sis3 Boeing .$ans #o in#rodu&e #*e !rea+$iner3 ?)?.I# is su..osed #o address a$$
#*e ,a&#ors and &*a$$enge #*e Airbus8s A((6.
A .es# ana$1sis is +ere$1 a -a1 o, e2a+ining &*ara&#eris#i&s o, #*e e$$i.sis PES"E
.o$i#i&a$3 e&ono+i&a$3 so&ia$ and #e&*no$ogi&a$ as.e&#s o, a &er#ain en/iron+en#. I# is
signi,i&an# #o &ondu&# an air$ine .es# ana$1sis in #*e -or$d be&ause #*ere are so +an1 di/erse
&on&erns #o no#i&e. Po$i#i&a$ ,a&#ors &an +ani.u$a#e #*e a..roa&* in -*i&* a &o+.an1 -or0s.
I, an air$ine is in#egra#ed -i#*in a &oun#r1 -i#* a &rue$ .o$i#i&a$ &$i+a#e #*en .o$i#i&s .$a1s a
*uge ,un&#ion in in,$uen&ing #*e range o, business #*e &o+.an1 &an *and$e. or e2a+.$e3
air$ines #*a# ,$1 #o #*e Midd$e Eas# *a/e #o re,$e&# on .o#en#ia$ dangers o, doing business in a
$a#en#$1 *os#i$e &$i+a#e; #erroris+ and .ira&1. A&&ording #o e&ono+i& da#a3 i# is ad/an#ageous
#o /eri,1 -*e#*er or no# e&ono+i& obGe&#i/es are being +e#. O#*er #*ings #*a# &an be
es#ab$is*ed ,ro+ #*is ana$1sis &o+.rise ra#e o, in,$a#ion3 budge# $i+i#s3 sa$ar1 s#ru&#ure3
Boeing VS Airbus
22
e;ui.+en# +ain#enan&e3 and *o- business -i$$ be &ondu&#ed in #*e ,u#ure. "*e air$ine
business re;uires *ig* o/er*ead &os#s #*ere,ore3 e&ono+i& s&ru#in1 is e2#re+e$1 signi,i&an#3
,or e2a+.$e #*e /arious .$a1ers did #*e &*anges dis&ussed abo/e during #*e re&en# re&ession.
In /ie- o, so&ia$ as.e&#s in #*e air$ine business3 i# is signi,i&an# #o 0ee. in +ind #*a#
sa,e#1 is an essen#ia$ &on&ern. "*e e/en#s o, Se.#e+ber 443 :6643 *a/e &*anged #*e -a1 #*e
air$ine indus#r1 -or0s3 as seen in #*e &ase o, /irgin A#$an#i&. or e2a+.$e3 se&uri#1 *as
be&o+e #*e ,o&a$ .oin# be*ind *o- air$ines ,un&#ion. A..re*ensions o/er .re&eding se&uri#1
-or0,or&e *a/e +ade +an1 air$ines reassess #*eir *iring .ra&#i&es. "*e $as# &*ara&#eris#i& o, a
PES" in/es#iga#ion is #*e #e&*no$ogi&a$ rea$+ o, &ondu&#ing business. In #*e air$ine indus#r13
#e&*no$og1 is a 0e1 as.e&#. !ue #o #*e *ig* .ri&e o, .e#ro$ due #o #*e oi$ .ri&es3 +an1 air$ine
business dire&#ors are eager #*a# ne- and &*ea.er #1.es o, ,ue$ are genera#ed ,or use. In
addi#ion3 #*ere are +ore &o+.u#eri<ed #i&0e#ing &ubi&$es #*an be,ore; enab$ing business #o be
s#rea+$ined.


Boeing VS Airbus
23
A..endi2 A; Bib$iogra.*1
2. Bo1d3 !e/ani >3 BSa,e#1 and Pro,i#s in #*e Air$ine Indus#r1.D The Journal of
Industrial Economics, (9 (()E (6A7(4)3 :666
3. Co$3 %i$$ia+ . BIndus#r1 S#udiesE Air&ra,#3D The Industrial College of the Armed
Forces. *##.EFF---.ndu.eduFi&a,Findus#r1F:666Fair&ra,#Fair&ra,#.*#+3 :66A.
,. Har#$e13 =3 B"*e >earning Cur/e and I#s A..$i&a#ion #o #*e Air&ra,# Indus#r1.D The
Journal of Industrial Economics, 4( (:)E 4::74:)3 45'A
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Flight Commission.
*##.EFF---.&en#ennia$o,,$ig*#.go/Fessa1FAeros.a&eFAeroOV4.*#+.
6. Go$i&*3 Vi&0i >3 Bro+ Co+.e#i#ion #o Co$$abora#ionE "*e C*a$$enge o, Co++er&ia$7
C$ass Air&ra,# Manu,a&#uring.D International *rgani+ation, 9' (9)E )55 5(93 455:
7. >and$er3 Mar03 BAirbus Edge in H6A Sa$es Co+es %i#* an As#eris0.D The .e/ 0or1
Times. Januar1 4)3 :66'
8. Mi$ner3 He$en V.3 and @o,,ie3 !a/id B. BBe#-een ,ree #rade and .ro#e&#ionis+E
s#ra#egi& #rade .o$i&1 and #*e #*eor1 o, &or.ora#e #rade de+ands.D International
*rgani+ation, 9( (:)E :(57:?:. 45)5
9. No Au#*or.. BCurren# Mar0e# Ou#$oo0.D :oeing Cororation.
*##.EFF---.boeing.&o+F&o++er&ia$F&+oF.d,F&+o:66ANOu#$oo0Re.or#..d,. :66A
2-. Pa/&ni03 Nina.. B"rade !is.u#es in #*e Co++er&ia$ Air&ra,# Indus#r1.D :lac1/ell
;ublishers. Uni#ed =ingdo+. :66:
22. S*o0ra$$a3 S*ad H.. BBoeing ??? Case S#ud1.D Synthesis Coalition. 455?
23. Si+onson3 G. R.. B"*e !e+and ,or Air&ra,# and Air&ra,# Indus#r13 456?745A).D The
Journal of Economic )istory, :6 (()E ('47():. 45'6
Boeing VS Airbus
24
2,. S#ur+e13 S. G.. BCos# Cur/es and Pri&ing in Air&ra,# Produ&#ion.D The Economic
Journal, ?9 (:5')E 5A975):. 45'9
A..endi2 BE Case S#udies and #*eories
4. Airbus Indus#ries
:. Boeing In#erna#iona$ &o+.an1
(. Virgin A#$an#i&
9. Por#er A ,a&#ors
A. Pes#e$ ana$1sis
'. #*e *ub and s.o0e /a$ues
?. .oin# #o7.oin# idea