Airbus vs. Boeing: Why Boeing Failed to Preempt Airbus in Introducing Its A380 Essay

2666 WordsMay 8, 201211 Pages
Airbus vs. Boeing: Why Boeing Failed to Preempt Airbus in Introducing its A380 Maastricht University School of Business and Economics Maastricht, 12 December 2011 Victor Pasquier, VP ID number: i6037138 Study: International Business Course code: EBC1009 Economics & Business Group number: 34 Tutor’s name: V. Valle Lara Writing tutor’s name: C. Lawrence Writing Assignment: Main Paper Maastricht University School of Business and Economics Maastricht, 12 December 2011 Victor Pasquier, VP ID number: i6037138 Study: International Business Course code: EBC1009 Economics & Business Group number: 34 Tutor’s name: V. Valle Lara Writing tutor’s name: C. Lawrence Writing Assignment: Main Paper Table of Content Introduction - 2 - 1. Airbus’ situation - 2 - 2. Boeing’s situation - 4 - 3. Opportunities and threats for Airbus and Boeing - 5 - 4. Boeing’s threat - 7 - Conclusion - 8 - Reference list - 9 - Introduction In 1993 Airbus came up with the project of creating a super jumbo-jet designed to travel with a range of over 14,000 km and carry 555 passengers (Irwin & Pavcnik, 2001). Airbus’ competitor, the American firm ‘Boeing’, market leader since 1960, in order to counter the introduction of a super jumbo jet like the A380, started a project that would ‘stretch’ it’s initial ‘747’ in order to compete with Airbus’ A380 (Esty & Ghemawat, 2002). The 747, first wide-body aircraft (also called a jumbo jet), holds the capacity record of passengers for 37 years. It is the fastest airplane on the market and can attain a range of more than 13,000 km. After two efforts of creating the stretched version of the ‘747’ Boeing cancelled the project leaving Airbus take the lead thanks to its new super jumbo. The truth is Boeing never intended to create a superjumbo but only wanted Airbus to abandon the project of an A380

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