Analysis of Boeing Aircraft Companys supply chain management - Research Paper Example

government in 1978 as well as the European Union’s adoption of a mutual airspace, the airline industry has witnessed even worse situations. Recently, a large number of low carriers have penetrated the airline market globally. It is also securing the departure of legacy carriers, which have been regarded as household names for the past few decades (Topham, 2013). In the past three decades, the airline industry has grown at a steady pace, and is forecasted to do so in the coming future. RPK (revenue passenger kilometers), an indicator of a passenger paying for a single kilometer has grown threefold in the last thirty years.

Most of the forecasts pertaining to the industry today reveal that both RPK’s as well as revenue ton kilometers, which represents the RPK’s freight version will double from the expected GDP growth of 3 percent (TradeGov, 2009). Presently, the large commercial aircraft (LCA) fleet, which is airplanes having more than 300 seats and over is approximately 16,000 and rising. The anticipated capacity to cope with the growth in traffic by the year 2023 is about 35,000. About 70 percent of these airplanes are nonexistent and will be produced by Boeing, Airbus, as well as other companies in the LCA industry.

With respect to the present list prices, the aircrafts will demand additional buildup of assets amounting to approximately $1.6 trillion (TradeGov, 2009) (U.S.InternationalTradeCommission, 2009). This paper will undertake an analysis of the Boeing Aircraft Company based on its supply chain management. The LCA industry serves as the major supplier of assets for the airline industry. The major competitors in this case include Boeing Company and Airbus S.A.S. the two companies are offered support by their respective governments in diverse ways.

This situation is indicative of the airline industry’s national flag carriers. The assistance that the government provides to these companies in characteristic of two major factors. Firstly,