Boeing and Airbus have, for the past two decades, ran the world of commercial airliners. The success of both companies is a result of beneficial mergers and a decline in the economy, which would push any other would be competitors out of the picture. This left Boeing, an American-based company, and Airbus, based out of Europe. Both companies have fighting like cats and dogs for the top spot, developing aircraft to out-do the other. The current competition between Airbus and Boeing is between the Boeing 787 and the Airbus A350. Recent issues with the batteries in the 787 has grounded the fleet due to fires. While the A350 has not seen issues like this, it does not mean that they are currently taking over the market. In sales, both Boeing and Airbus delivered around 600 aircraft; the issue lies in the over 4000 jets that are currently backlogged. Politics and government relations is important to both companies, as made apparent by both having made numerous attempts to outbid each other for government contracts. In 2011, Boeing beat out Airbus for a contract worth $35 Billion dollars to produce tankers for the United States Air Force. Some politicians were not happy with the decision to go with Boeing. “I’m disappointed but not surprised. Only Chicago politics could tip the scales in favor of Boeing’s inferior plane. EADS clearly offers the more capable aircraft. If this decision stands, our warfighters will not get the superior equipment they deserve.” said Senator Richard Shelby. On the other end of the spectrum, Senator Patty Murray said it was “a major victory for the American workers, the American aerospace industry and America’s military.” Politics do play a large role in who gets what and not everyone has to be happy about it.
There are a number of factors that make companies such as Boeing and Airbus successful. The first is obviously the manufacturing aspect. Without a solid product, neither could be successful. About 15 years ago, Boeing switched their manufacturing philosophy to a more lean approach. In the actual aircraft, Boeing primarily uses hydraulically operated systems. Airbus took a different approach; they made the plane it self more efficient and pilot-friendly. Airbus' approach is known as the fly-by-wire, a concept that they came up with in the 1980s and never looked back from.
Boeing currently employees over 170,000 people in the United States and 70 other countries. In comparison, Airbus has 59,000 employees internationally. Both companies have their strong hold in the market right now, but it's only a matter of time before another manufacturer comes out with the bigger, better, and safer aircraft that unseats one or both from the "duopoly."
References
Airbus. Fly-by-wire. Retrieved from: http://www.airbus.com/innovation/proven-concepts/in-design/fly-by-wire/
Altmeyer, C, Hepher, T. (17 January, 2013). Boeing overtakes airbus in annual sales race. Retrieved from: http://www.reuters.com/article/2013/01/17/us-airbus-orders-idUSBRE90G0CF20130117
Bloomberg. (3, June, 2001). Boeing goes lean. Retrieved from: http://www.businessweek.com/stories/2001-06-03/boeing-goes-lean
Drew, C. (24 February, 2011). Boeing wins contract to build air force tanker. Retrieved from: http://www.nytimes.com/2011/02/25/business/25tanker.html?_r=0
Thompson, M. (17 January, 2013). Boeing overtakes airbus as clouds gather. Retrieved from: http://money.cnn.com/2013/01/17/news/companies/boeing-airbus/index.html
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