BOEING AND AIRBUS

Boeing and Airbus

Table of Contents

Executive Summary2

Introduction2

Comparative Analysis3

Ratio Analysis7

Profitability Ratios7

Efficiency Ratios9

Liquidity ratios10

Gearing Ratios11

Horizontal Analysis11

Boeing11

Airbus12

Vertical Analysis12

Recommendations13

Conclusion14

Boeing and Airbus

Executive Summary

This research paper deals with the competition analysis between Boeing and Airbus. It is well known fact that these two airplane manufacturer have enjoyed duopoly for a long period of time, and this is way most the times they are compared to each other, as both of them are giants of their industry. In this research paper, we discussed both the companies in detail along with their competition analysis and ratio analysis. The ratio analysis was carried out in detail along with its profitability efficiency, liquidity, gearing ratios. The feature of this analysis also includes the comprehensive details of both horizontal analysis and vertical analysis.

Introduction

Over the next 20 years, the market of civil aviation will represent a turnover of over $ 3000 billion (billion) to about 28,600 aircraft. The cumulative backlog of Airbus and Boeing is well over $ 550 billion in early 2009.In this context, we can suspect that the situation in which strong competitiveness are the two manufacturers is further enhanced by their duopoly: there are only two major manufacturers in the world. So we can say that there is a war on three commercial marketing but also in diplomacy, this is where commercial competition could turn into an international dispute of a legal nature. 

The two giant aircraft, the Airbus and Boeing, are in a real battle in height. The competition between these two giants of the air is enormous, both in volume sales of appliances and in the struggle for political subsidies and grants. With the launch of his new star aircraft, the giant A380 , the European company Airbus has just made ??public its financial results for 2004. For the second consecutive year, the aircraft manufacturer exceeds its U.S. rival Boeing in aircraft deliveries, with 320 units versus the 285 of the latter. According to these data, Airbus stands as a leader in the civil aviation industry, says its president and CEO, Noel Forgeard.

Spokesmen for Boeing subtracted drama to the situation and consider that these figures are within the business plan. In fact, at corporate headquarters in Chicago insists that his intention is not fierce competition and short-term obsessive, but to overcome the crisis and establish a sound management structure. In 2003, Airbus delivered 305 aircraft and Boeing 281. In an internal memo to employees, President Forgeard said that the European company exceeded all its targets last year of production. The European manufacturer, a subsidiary of EADS, had set a target delivery of 300 units for 2004. The order book shows that Airbus will continue to maintain industry leadership with the foresight to build airplanes 1.379 compared to 1.060 for Boeing.

The fact of the matter is that it is at times very hard to choose or single out the best one between both of them, but still there is a lot that can be analyzed and compared. In this research paper we will be doing ...