AIRBUS AND BOEING

Airbus and Boeing

Airbus and Boeing

Introduction

In addition, the global economic crisis which had put many airlines to the test until the

End of 2010 led to largely unanticipated positive long-term effects for network carriers.

The decreasing revenues and profits in the sector imposed the start of restructuring programs in order to decrease the cost base and secure profitability. By renegotiating wage agreements and putting a stronger focus on efficiency improvement, operational excellence and product as well pricing innovations, the cost base of many airlines could be substantially reduced without decreasing service quality. This paid out after the recession, as European network carriers could offer a higher quality and service level compared to their low-cost rivals at competitive pricing.

The dominance of the emerged Asian economies is reflected in today's aviation market.

Compared to European network carriers, Asian airlines are flourishing. The positive market development in Asia enabled the companies to grow sustainably and to boost investments in their service and fleet. On long-haul flights to and from Europe, they could expand their offering significantly and increase their share of the long-haul European market to almost 30% by attracting former customers of European network carriers (Zook, 2006, pp. 471-490).

New Global Competitors

A further challenge for European network carriers is the growing international competition, especially from Middle Eastern and Asian airlines. Emirates recently announced the purchase of a further 32 Airbus A380 and 30 Boeing 777 for 21.6 billion US$, adding to an already impressive order book. The vision of making Emirates the world's biggest airline with Dubai as the major hub for international air travel is well underway 28). In addition, despite the rapid growth, Emirates manages to earn money. In 2010, Emirates is set to become the most profitable airline worldwide 29). As mentioned above, also Singapore Airlines is extremely well positioned in the global competition. Its hybrid strategy enables the company to offer high quality services to its customers at extremely low operating cost. Singapore focuses on investments in everything that benefits the customer while at the same time being extremely efficient in support and back-office processes. The two examples show that global rivals pose a serious threat to the future competitiveness of European network carriers.

Management beliefs and mind-set, of both manufacturers

Airbus

The company's beliefs are habitually to hear to its clients and to sustain its dream -- the ahead considering which has put Airbus at the forefront of the industry. Nothing is taken for granted. This worth of discovery and excellence is endeavored to be attached by Airbus' Management with a heritage of joint project - as well amidst the workers and the managerial grades as in the direction of suppliers and customers. The objective is a two-way flow of outlooks, concepts and mechanical ideas. The authority concept of Airbus is about distributing responsibilities and swapping concepts amidst all grades and nationalities for getting the best outcomes, but regardless it is glimpsed as crucial to chase a powerful authority with clear guidelines (Werner, 2005, ...