Challenge to the Boeing-Airbus Duopoly in Civil Aircraft: Issues for Competitiveness

Challenge to the Boeing-Airbus Duopoly in Civil Aircraft: Issues for Competitiveness - Kindle edition by Glennon J. Harrison. Download it once and read it on.
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Teal group's Richard Aboulafia notes that Boeing's pricing power for the ER was better when it was alone in its long-haul, large capacity twinjet market but this advantage dissipates with the A coming. Those discounts were presented again in Le Nouvel Observateur 's Challenges. In , Airways news indicated discounted list prices for long haul liners: This appears in the manufacturer's accounting: The A has been selected by operators Dec.

After dominating the very large aircraft market for four decades, the Boeing now faces a challenge from the A In response, Boeing now offer the stretched and updated , with greater capacity, fuel efficiency, and longer range. Frequent delays to the Airbus A program caused several customers to consider cancelling their orders in favour of the refreshed To date, Boeing has secured orders for 78 F and 51 I aircraft with first deliveries originally scheduled for and as the I is only in service with Lufthansa , while Airbus has orders for As, the first of which entered service in and has delivered a total of to customers as of December 31, Several Boeing projects were pursued and then cancelled, for example the Sonic Cruiser.

Boeing's current platform for fleet rejuvenation is the Boeing Dreamliner, which uses technology from the Sonic Cruiser concept. Industry sources believe that the 's design makes re-engining considerably more expensive for Boeing than it was for the Airbus A However, there did prove to be considerable demand. Southwest Airlines, who use the for their entire fleet in service or on order , said they were not prepared to wait 20 years or more for a new model and threatened to convert to Airbus. It took Boeing 42 years and 1 month to deliver its 10, 7series aircraft October November and, 42 years and 5 months for Airbus to achieve the same milestone May October In the s this lead narrowed significantly but Boeing remained ahead of Airbus.

RAeS RS-002 single-aisle airliner, by Kaktus Digital

In the s Airbus assumed the lead in narrow-body aircraft. By little difference remained between Airbus and Boeing in both the wide-body or narrow-body categories or the range on offer. Boeing [94] Airbus [95]. In , there were Boeing s in service, and almost as many of the Airbus A family with 6, For , Forecast International expects deliveries for Airbus, for Boeing and net new orders for each manufacturer.

Challenge to the Boeing-Airbus Duopoly in Civil Aircraft: Issues for Competitiveness

Boeing has continually protested over launch aid in the form of credits to Airbus, while Airbus has argued that Boeing receives illegal subsidies through military and research contracts and tax breaks. Airbus is given reimbursable launch investment RLI, called "launch aid" by the US from European governments with the money being paid back with interest, plus indefinite royalties if the aircraft is a commercial success.

The agreement allows up to 33 per cent of the program cost to be met through government loans which are to be fully repaid within 17 years with interest and royalties. These loans are held at a minimum interest rate equal to the cost of government borrowing plus 0. Airbus argues that pork barrel military contracts awarded to Boeing the second largest U. In its recent products such as the , Boeing has also received support from local and state governments. These talks were not successful, with the dispute becoming more acrimonious rather than approaching a settlement.

Joint EU-US statement [].

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On 31 May the United States filed a case against the European Union for providing allegedly illegal subsidies to Airbus. Twenty-four hours later the European Union filed a complaint against the United States protesting support for Boeing. Increased tensions, due to the support for the Airbus A, escalated toward a potential trade war as the launch of the Airbus A neared. Airbus preferred the A program to be launched with the help of state loans covering a third of the development costs, although it stated it will launch without these loans if required.

The A will compete with Boeing's most successful project in recent years, the Dreamliner. On 1 December Airbus reported that it had fulfilled its obligations under the WTO findings and called upon Boeing to do likewise in the coming year. The European Union requested the matter be referred to arbitration under Article The DSB agreed that the matter raised by the European Union in its statement at that meeting be referred to arbitration as required by Article On 12 March the appellate body of the WTO released its findings confirming the illegality of subsidies to Boeing whilst confirming the legality of repayable loans made to Airbus.

Boeing and the US government were given six months to change the way government support for Boeing is handled. The European Union welcomed the US intention and noted that the 6-month period stipulated in Article 7. The WTO approved creating a panel to rule on the disputed compliance this was initially to rule in but is not now expected to complete its work before due to the complexity of the case.

In September , the WTO found that Airbus did not remedy the harm to Boeing from illegal subsidies, and the EU immediately appealed for a final decision in late spring The EU case against Boeing filed as a countersuit lags the U. On 15 May , in its EU appeal ruling, the WTO concluded that the A and A received improper subsidies through repayable launch aids or low interest rates , like previous airliners, which could have been avoided.

US tariffs, probably on other industries, may take up to 18 months to get WTO approval, but EU could retaliate over Washington State subsidies and tax breaks for the X. From Wikipedia, the free encyclopedia. Middle of the market. Airbus A family deliveries [24] [25]. Boeing series deliveries [26]. We have worked together well so far, and intend to continue to do so. United States, Datamonitor, November , pp. Boeing's long-term message doesn't resonate".

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Retrieved 14 January Air France, Cathay Pacific and Saudia retire passenger fleets in ". Retrieved 16 May Retrieved 13 May Airbus is Leading Slightly — Part I". Retrieved June 14, Archived from the original on December 30, Retrieved May 6, Archived from the original Microsoft Excel on December 23, Retrieved 10 December Retrieved February 5, Singapore Airlines could be the sole customer".

Retrieved 12 September Retrieved 30 December A pleases, Virgin Atlantic disappoints". Archived from the original on 15 December Retrieved 13 December Retrieved 22 November Clark points out that "the faster you fly [the A], the more fuel-efficient she gets; when you fly at [Mach] 0. Archived from the original on 19 September Retrieved 21 September Airbus, 14 March Retrieved 13 January Retrieved 3 August How will Boeing profit from tanker contract?

Archived at the Wayback Machine. Boeing's 'first preference' is to build planes in Puget Sound region". Retrieved 28 September Rolls and Airbus — how the latecomer excelled".

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Competition ; Industry analysis ; Resources and capabilities ; Boeing ; Airbus. The global civil aerospace industry, especially in the seat-plus market segment, is a duopoly between Boeing and Airbus SAS, with a high degree of competitive rivalry.

Competition in the aircraft industry | Nova workboard

Whilst both Boeing and Airbus forecast future global demand to be within the range of 4. Boeing forecasts growth to arise through network fragmentation and the rise of point-to-point traffic, whilst in contrast Airbus forecasts growth to arise from network consolidation and hub-to-spoke traffic. The point-to-point model favours the development of smaller capacity aircraft flying to final destination, and the hub-to-spoke model favors the development of larger capacity aircraft flying less frequently between hubs in which passengers are fed into spokes on smaller capacity aircraft.