Background on Boeing & Airbus - Essay Example

Background on Boeing & Airbus The competition for jet airliners manufacturing has been monopolized by the two largest jet producersBoeing and Airbus. The two companies have been engaging each other with fierce competition for market shares in the global aircraft market. For the past couple of decades, the two companies have made groundbreaking progress in the manufacturing of some of the largest aircrafts in the world. The competition has been at equilibrium whereby whenever either of the companies introduces a new large model; their counterparts retaliate by introducing their own.

The competition between the two companies should be attributed to the fast growth in the aircraft manufacturing industry (Lynn 1997). Airbus was founded in 1970 and it has in headquarters in Toulouse in France. The company took over the commercial airline business in the 90s and it has recorded tremendous growth in the past two decades. The company has majorly invested in manufacturing travel aircrafts for the global commercial market. In 1967, Airbus produced its first commercial Airplane, the A300.

The Airbus A340 and A330 were later developed and Airbus along with its partner companies went into the Aircraft market with a brand that would take over the market shares globally (McGuire 1997). Airbus, just like its Boeing counterpart has always been led by the urge to maintain innovativeness throughout its period of existence, the company has always posed a challenge to itself to always improve on it previous models and to beat their rivals. This has majorly been achieved through investing in building and testing challenging ideas, perfecting them and ensuring that the final products meet the international standards in terms of quality and capacity (Thornton 1995).

Boeing is the largest American Aircraft manufacturing company that was founded in 1916. Based on the time that the company has been in the business, its position in the competition in the industry is justified. It has developed some of the largest models of aircrafts in the world and it has given Airbus a run for their money with the introduction of very large airplanes. In its initial manufacturing days, the company was majorly a war aircraft producing company but it later shifted to fully developing high capacity airplanes.

The 737 mode was among its first best performing commercial airplanes. The 787 Dreamliner is among its most recent aircrafts that has attracted a good reception in the global market (Boeing 2013).Competition The competition in the aircraft business has traditionally based on the capacity of the aircrafts, their comfort and the safety of the aircraft. Boeing had the control to the competition bar in the industry for the better par of the 20th century but early into the 21st century it was overtaken by airbus.

Airbus is doing very well in terms of harnessing market shares in the global market and delivering large aircrafts with improved technological abilities. The security factor has been comprehensively addressed in their latest models and they have increased the passenger carrying capacity as well as the luggage capacity. It is expected that the competition bar will be raised further due to the progress in technology (Grieder 1997).ReferencesBoeing 2013, Startup Boeing. Available from: . [4 March 2013].

Greider, W 1997, One World, Ready or Not: The Manic Logic of Global Capitalism. London: Penguin Press. Lynn, M 1997, Birds of Prey: Boeing vs. Airbus, a Battle for the Skies. New York: Four Walls Eight Windows. McGuire, S 1997, Airbus Industries: Conflict and Cooperation in U.S.E.C. Trade Relations. New York: St. Martins Press. Thornton, D W 1995, Airbus Industries: The Politics of an International Industrial Collaboration. St. Martins Press.