The Boeing Aircraft Company has dominated the commercial aircraft market for decades, but its...

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The Boeing Aircraft Company has dominated the commercial aircraft market for decades, but its position of influence has lessened in recent years. Its chief competitor, Airbus, has made significant market gains, and may be posed to become the number one producer of commercial aircraft in the near future.

analyzehow Boeing and Airbus approach the aircraft marketplace, how they are alike and different (particularly their production processes), where the rivalry is likely to head, and the most probable outcome of their ongoing competition.

Remember to document your sources, to be specific, and totie your ideas back to Managerial Economics.

Robert · Accepted Answer

Boeing vs Airbus Competition 
Approaches 
Although both the above companies are involved in the same sector but there are fundamental 
differences in the approaches of the two companies which makes them quite competitive. 
Considering the sector, billions of dollars are at stake in terms of investment so as to deliver 
the next successful product. The difference in approaches of the two companies can be 
highlighted as shown below. 
 Airbus is of the belief that the hub and spoke model would be the model chosen by 
airlines and passengers in the future. As a result, it has placed its bet in the super–
jumbo A380 which is capable of carrying passengers in the range of 600 to 800. The 
core assumption is that huge planes such as A380 would be used to connect between 
two hubs which would typically have huge traffics. Subsequently, planes with smaller 
capacities would be deployed to take the passengers to their final destination or 
spokes. The tacit assumption here is that passengers do not have issues with changing 
of airplanes at intermediate destination (Babej & Pollak, 2006). On the other hand, the 
rival Boeing dismisses the hub and spoke model and instead believe that in the future 
people would prefer to the directly ferried to their final destination without having to 
face any intermediate stops. As a result,

The Boeing Aircraft Company has dominated the commercial aircraft market for decades, but its position of influence has lessened in recent years. Its chief competitor, Airbus, has made significant...

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