Airbus And Boeing
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Airbus and Boeing By Miss Pornpimon Phumdara54950503002-9 Miss Suwannee Sitthimonamnouy549505030 Miss Jirawan Chutimapanya54950503011-0
Competition between Airbus and Boeing (some times referred to as "Airliner Wars") is a result of the two companies' domination of the large jet airliner market since the 1990s, which is itself a consequence of numerous corporate failures and mergers within the global aerospace industry over the years. Airbus began its life as a consortium, whereas Boeing took over its former arch-rival, McDonnell Douglas, in 1997.
• Other manufacturers, such as Lockheed, Convair in the US and Dornier and Fokker in Europe, have pulled out of the civil aviation market after disappointing sales figures and economical problems, while the collapse of the Eastern Bloc and its trade organization Comecon around 1990 has put the former Soviet aircraft industry in a disadvantaged position, although Antonov, Ilyushin , Sukhoi, Tupolev and Yakovlev still manufacture planes.
• All this has left Boeing and Airbus in a nearduopoly in the global market for large commercial jets comprising narrow-body aircraft, wide-body aircraft and jumbo jets. However, Embraer has gained market share with their narrow-body aircraft in the Embraer E-jets series. There is also a similar competition in regional jet manufacturing competetition between Bombardier Aerospace and Embraer.
• In the decade between 1999 and 2008 Airbus received 6,378 orders, while Boeing received 6,140. Although Airbus had higher deliveries since 2003, it had only 3606 deliveries from 1999 to 2008, while Boeing had 4089. The competition is intense, and each company regularly accuses the other of receiving unfair state aid from their respective governments.
Comparative Boeing and Airbus
• Boeing's largest airliner, is notably in direct competition on long-haul routes with the A380, a full-length double-deck aircraft now in service. For airlines seeking very large passenger airliners, the two have been pitched as competitors on various occasions. Following another delay to the A380 program in October 2006, FedEx and UPS canceled their orders for the A380-800 freighter. Some A380 launch customers deferred delivery or considered switching to the 747-8 and 777F aircraft.[
• (April 2009) no airline has canceled an order for the passenger version of the A380. A380 performed better than 747-8I in the market. Boeing is considering cancelling the 747-8I as Lufthansa is the sole commercial airline that ordered it (20).[
Competition through use of technology • One of the ways Airbus sought to compete with the well-established Boeing in the 1970s was through the introduction of advanced technology. For example, the A300 made the most extensive use of composite materials yet seen in an aircraft of that era, and by automating the flight engineer 's functions, was the first large commercial jet to have a two-man flight crew. In the 1980s Airbus was the first to introduce digital fly-by-wire controls into an airliner (the A320).
• Now that Airbus has established itself as a viable competitor to Boeing, both companies use advanced technology to seek performance advantages in their products. For example, the Boeing 787 will be the first large airliner to use composites for most of its construction.
World Trade Organization litigation • Portman (from the USA) and Mandelson (from the EU) issued a joint statement stating: "We remain united in our determination that this dispute shall not affect our coopera tion on wider bilateral and multilateral trade issues. We hav e worked together well so far, and intend to continue to do so." • Tensions increased by the support for the Airbus A380 have erupted into a potential trade war due to the upcoming launch of the Airbus A350. Airbus would ideally like the A3 50 programme to be launched with the help of state loans c overing a third of the development costs although it has sta ted it will launch without these loans if required. The A350 will compete with Boeing's most successful project in recen t years, the 787 Dreamliner.
• The Airbus A380 (525 seats in 3 class, 863 all economy) and the Boeing 747-8 (467 seats in a 3 class configuration,550+ in all economy) are generally considered the equivalent long range high capacity aircraft from the two corporations. (B747-400 pictured) • EU trade officials are questioning the funding provided by NASA, the Department of Defense (in particular in the form of R&D contracts that benefited Boeing) as well as funding from US states (in particular the State of Washington, the State of Kansas and the State of Illinois) for the launch of Boeing aircraft, in particular the 787.
Bangkok Post US mum on Boeing-Airbus ruling Writer: AFP Published: 4/09/2009 at 11:46 PM • US trade officials on Friday refused to reveal the first WTO ruling on the subsidy dispute between US aviation giant Boeing and European rival Airbus, saying it is "confidential.'' • The official of President Barack Obama's trade envoy confirmed that it has received Friday the confidential interim report from a WTO panel that heard the US challenge to European subsidies to Airbus.
• "We are still reviewing the interim report, which is about 1,000 pages long,'' Debbie Mesloh, deputy assistant US Trade Representative, told AFP. • "Because the interim report is confidential, we cannot discuss the contents,'' she said. • Mesloh said the United States was "challenging dozens of measures providing over billions of dollars in subsidies to Airbus, including launch aid to every major Airbus aircraft model. • "The dispute has proven to be one of the most complex and lengthy disputes under the WTO, she said.
• The United States, Mesloh said, had always maintained that the European governments had "provided unfair subsidies to Airbus that harm US interests.'' • In Geneva, the World Trade Organization confirmed Friday it has issued the ruling on the acrimonious dispute to officials from the United States and the European Union. • In a case brought against the European Union in October 2004, Washington charged that the EU illegally provided subsidies to Airbus.
• It said an accord that allowed Brussels to provide up to a third of development costs of new airliners was no longer valid since Airbus is now a major industry player and not the fledgling firm of when the deal was struck. • While Boeing and Airbus are implicated in the case, the WTO only deals in cases brought by the member states and not individual companies. • The ruling this week is one of the most complex to reach the international trade watchdog in Geneva.
• A spokesman for the European Trade Commissioner, Lutz Guellner, refused to give details of the interim ruling's contents. • "It is a long document of more than 1,000 pages... which we need to study carefully,'' he said. • "It is important to recall that this report is only half of the story and we await the interim report in the case launched by the EU against the US, which we expect to be issued in a few months,'' he added.
• Boeing had said ahead of the ruling that it will win. • But some analysts said a clear-cut judgment was unlikely given the complexity of the case. • Airbus has pointed out that there is also a ruling pending on the EU's tit-for-tat complaint against Washington over state aid to Boeing.
Competition between Airbus and Boeing (some times referred to as "Airliner Wars") is a result of the two companies' domination of the large jet airliner market since the 1990s, which is itself a consequence of numerous corporate failures and mergers within the global aerospace industry over the years. Airbus began its life as a consortium, whereas Boeing took over its former arch-rival, McDonnell Douglas, in 1997.
• Other manufacturers, such as Lockheed, Convair in the US and Dornier and Fokker in Europe, have pulled out of the civil aviation market after disappointing sales figures and economical problems, while the collapse of the Eastern Bloc and its trade organization Comecon around 1990 has put the former Soviet aircraft industry in a disadvantaged position, although Antonov, Ilyushin , Sukhoi, Tupolev and Yakovlev still manufacture planes.
• All this has left Boeing and Airbus in a nearduopoly in the global market for large commercial jets comprising narrow-body aircraft, wide-body aircraft and jumbo jets. However, Embraer has gained market share with their narrow-body aircraft in the Embraer E-jets series. There is also a similar competition in regional jet manufacturing competetition between Bombardier Aerospace and Embraer.
• In the decade between 1999 and 2008 Airbus received 6,378 orders, while Boeing received 6,140. Although Airbus had higher deliveries since 2003, it had only 3606 deliveries from 1999 to 2008, while Boeing had 4089. The competition is intense, and each company regularly accuses the other of receiving unfair state aid from their respective governments.
Comparative Boeing and Airbus
• Boeing's largest airliner, is notably in direct competition on long-haul routes with the A380, a full-length double-deck aircraft now in service. For airlines seeking very large passenger airliners, the two have been pitched as competitors on various occasions. Following another delay to the A380 program in October 2006, FedEx and UPS canceled their orders for the A380-800 freighter. Some A380 launch customers deferred delivery or considered switching to the 747-8 and 777F aircraft.[
• (April 2009) no airline has canceled an order for the passenger version of the A380. A380 performed better than 747-8I in the market. Boeing is considering cancelling the 747-8I as Lufthansa is the sole commercial airline that ordered it (20).[
Competition through use of technology • One of the ways Airbus sought to compete with the well-established Boeing in the 1970s was through the introduction of advanced technology. For example, the A300 made the most extensive use of composite materials yet seen in an aircraft of that era, and by automating the flight engineer 's functions, was the first large commercial jet to have a two-man flight crew. In the 1980s Airbus was the first to introduce digital fly-by-wire controls into an airliner (the A320).
• Now that Airbus has established itself as a viable competitor to Boeing, both companies use advanced technology to seek performance advantages in their products. For example, the Boeing 787 will be the first large airliner to use composites for most of its construction.
World Trade Organization litigation • Portman (from the USA) and Mandelson (from the EU) issued a joint statement stating: "We remain united in our determination that this dispute shall not affect our coopera tion on wider bilateral and multilateral trade issues. We hav e worked together well so far, and intend to continue to do so." • Tensions increased by the support for the Airbus A380 have erupted into a potential trade war due to the upcoming launch of the Airbus A350. Airbus would ideally like the A3 50 programme to be launched with the help of state loans c overing a third of the development costs although it has sta ted it will launch without these loans if required. The A350 will compete with Boeing's most successful project in recen t years, the 787 Dreamliner.
• The Airbus A380 (525 seats in 3 class, 863 all economy) and the Boeing 747-8 (467 seats in a 3 class configuration,550+ in all economy) are generally considered the equivalent long range high capacity aircraft from the two corporations. (B747-400 pictured) • EU trade officials are questioning the funding provided by NASA, the Department of Defense (in particular in the form of R&D contracts that benefited Boeing) as well as funding from US states (in particular the State of Washington, the State of Kansas and the State of Illinois) for the launch of Boeing aircraft, in particular the 787.
Bangkok Post US mum on Boeing-Airbus ruling Writer: AFP Published: 4/09/2009 at 11:46 PM • US trade officials on Friday refused to reveal the first WTO ruling on the subsidy dispute between US aviation giant Boeing and European rival Airbus, saying it is "confidential.'' • The official of President Barack Obama's trade envoy confirmed that it has received Friday the confidential interim report from a WTO panel that heard the US challenge to European subsidies to Airbus.
• "We are still reviewing the interim report, which is about 1,000 pages long,'' Debbie Mesloh, deputy assistant US Trade Representative, told AFP. • "Because the interim report is confidential, we cannot discuss the contents,'' she said. • Mesloh said the United States was "challenging dozens of measures providing over billions of dollars in subsidies to Airbus, including launch aid to every major Airbus aircraft model. • "The dispute has proven to be one of the most complex and lengthy disputes under the WTO, she said.
• The United States, Mesloh said, had always maintained that the European governments had "provided unfair subsidies to Airbus that harm US interests.'' • In Geneva, the World Trade Organization confirmed Friday it has issued the ruling on the acrimonious dispute to officials from the United States and the European Union. • In a case brought against the European Union in October 2004, Washington charged that the EU illegally provided subsidies to Airbus.
• It said an accord that allowed Brussels to provide up to a third of development costs of new airliners was no longer valid since Airbus is now a major industry player and not the fledgling firm of when the deal was struck. • While Boeing and Airbus are implicated in the case, the WTO only deals in cases brought by the member states and not individual companies. • The ruling this week is one of the most complex to reach the international trade watchdog in Geneva.
• A spokesman for the European Trade Commissioner, Lutz Guellner, refused to give details of the interim ruling's contents. • "It is a long document of more than 1,000 pages... which we need to study carefully,'' he said. • "It is important to recall that this report is only half of the story and we await the interim report in the case launched by the EU against the US, which we expect to be issued in a few months,'' he added.
• Boeing had said ahead of the ruling that it will win. • But some analysts said a clear-cut judgment was unlikely given the complexity of the case. • Airbus has pointed out that there is also a ruling pending on the EU's tit-for-tat complaint against Washington over state aid to Boeing.
