Airbus vs Boeing Case

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Jeevanandini Balasubramaniam MBA 651 Wednesday’s 7.15 p.m. to 9.45 p.m. Group # 5 Jeevanandini Balasubramaniam MBA 651 Wednesday’s 7.15 p.m. to 9.45 p.m. Group # 5 A350XWB: Airbus’s answer to Boeing’s Dreamliner A350XWB: Airbus’s answer to Boeing’s Dreamliner Question 5: How have sales for Airbus and Boeing compared leading up to the time of the case? Specifically what has occurred since the announcement by Boeing of the development of the 787? How do the prices of the 787, A 350 and A 350 XWB compare? Where do you believe the fall in the kinked demand curve? What does this imply for the future success of each product? Answers: In the 1970s, Boeing dominated all aircraft market segments before Airbus started to challenge it through a series of innovations. In 1972, Airbus entered the twin-aisle segment with the A300 B1 powered by just two engines, pioneering the concept of “twin-aisle-twin.” Over the years Airbus became a stronger challenger and caught up with Boeing in terms of market share. Since the 1990s, the two companies have been in tight competition for virtually each aircraft order. The orders for Boeing has been more than that of Airbus from the year 1996 to the year 2000 with the orders for Boeing decreasing in the year 1999. From the year 2001 to the year 2005 Airbus had more orders than Boeing and in the year 2006, Boeing’s orders had again increased so that it was more than that of Airbus, whose orders had substantially decreased from 1,111 in 2005 to 824 in 2006. The deliveries of Boeing has been more than that of Airbus from the year 1996 to 2002, although the number of orders were more for Airbus in the years 1999, 2001 and 2002. After that, the deliveries of Airbus had increased until the year 2006 although there was a substantial decrease in the number of orders for Airbus. A deeper look into the various segments

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