Boeing
The worldwide market for commercial jet aircraft is primarily dependent on long-term trends in airline passenger traffic. And this trend can be explained by factors such as economic growth in developed and emerging markets along with political stability. First, there are limitations in air transport infrastructure such as government and environmental regulations and air traffic control. Second, because demand for aircraft is highly volatile, long run planning becomes difficult and raises the risks involved in producing aircrafts. The commercial airline industry is prone to boom and bust cycles. During the early 1990s many major airlines experienced financial trouble. Pan Am, Continental, and Eastern were all either in Chapter 11 or had recently folded. Many other airlines were losing money. In response airlines slowed their ordering of new aircraft, pushed backed delivery dates for aircraft on firm order, and decided not to convert their options on future aircraft de!liveries on firm orders. The globalization and consolidation of the industry causes increased competition as well. Even though there are very few players, the intense competition and very high capital requirements drive the need to maximize volume and ta
At the present time the aircraft industry is dominated by two global players; Boeing and Airbus, and their rivalry is in many ways representative of two seemingly incompatible as well as totally opposing market philosophies. Boeing is the "free market" champion, while Airbus represents the "not so free" approach of the European Union's organized and government subsidized competition in the so-called strategic markets. For years, however, the commercial aircraft industry has been an American success story. Until 1980 U.S. manufacturers held a virtual monopoly. In recent years, however, U.S. dominance has been threatened by the rise of Airbus Industrie, a consortium of four European aircraft manufacturers. Since 1981 Airbus has emerged as the world's second-largest aircraft manufacturer. By the late 1980s and the early 1990s Airbus's share of aircraft orders in any one year stood between 20 percent and 30 percent, up from 14 percent in 1981. However, to the disdain of Boe! ------------------------------------------------------------------------ ing, most of the research and design that helped Airbus create the technological advances they needed to gain the market share were financed by money from the participant nation governments.
Some common words found in the essay are:
War II, , Airbus Industrie, Eastern Chapter, Commerce Airbus, European Union's, Germany Spain, Boeing Airbus, World War, unfair competition, aircraft industry, leveled playing field, gain market share, gain market, government subsidies, playing field, industry boeing, airbus concede subsidies, subsidized world, concede subsidies leveled, leveled playing, subsidies leveled playing, market share, subsidies leveled,
Approximate Word count = 841
Approximate Pages = 3 (250 words per page double spaced)
|
