Boeing and Airbus- Airline Industry


Added on  2020-03-16

5 Pages1402 Words54 Views
AIRLINE INDUSTRY1Airline IndustryStudent’s NameCourseInstructorDate
Boeing and Airbus- Airline Industry_1

AIRLINE INDUSTRY21a. As the competition continues being intense between Boeing and Airbus in providing carriers that meet the global demand by the airlines, diversified carriers have been produced. Boeing has faced increased competition from Airbus since the 1970s and that has seen the family of aircraft expand[ CITATION Cam01 \l 1033 ]. As of stoday, Airbus is competing in areas that were once the stronghold of Boeing. In 2003, Airbus delivered more planes than Boeing for the first time. In 2007, Boeing won more orders as compared to the Airbus[ CITATION Hol15 \l 1033 ].The A320 was selected bymore than 222 operators and is now gaining ground as it is becoming popular among low-cost operatorscompared to the Boeing 737. b. The business class passengers are accustomed to having a fully flat bed and those using the economy class have little to enjoy in the recent past. As the search for increasing the cabin density among the airlines continues, the economy class has seen more comfort with the introduction of wider seats that seem to generate more comfort as the passengers can turn and move their legs.[ CITATION Air17 \l 1033]The Mexican carrier, on the other hand, has introduced the super diamond that has better specifications regarding offering larger space and more privacy and is similar to the airways found in Qatar such as 787s that offer live channels on a 18inch touchscreen on high definition screens. Airlines are ordering large crafts to accommodate the many specifications that cater for the needs of their passengers regarding space and privacy in some planes. The large seats in economy class require a large plane.c. Capital requirements in the airline industry are overwhelming, the profits seem to be reduced, and the reputation seems tainted according to a flying specialist Boyd. Airline companies such as Skybus Aircrafts and Ata carriers have fizzled, and even the Virgin America which is the best failed to realize significant benefits I the first five years with its initial flights[ CITATION Por08 \l 1033 ]. In 1979 there wasderegulation of the airline industry a move that saw misfortunes accompany airline carriers. Recently, more than $ 60 billion was lost by the domestic carriers due to the increased costs of fuel leading to insolvencies of some airline companies and others merging.d. A myriad of challenges exist for the airline industry, for instance, there has been substantial pressure to improve operational efficiency, and thus financial performance has become a critical factor in defining the success of the airline. Airlines are becoming more radical about the business that they need to carry on and the routes to continue serving. Such choices depend on the understanding of the economics of the business and the desire to embrace ideas that are unconventional[ CITATION Ego17 \l
Boeing and Airbus- Airline Industry_2

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
MGT5IPM: International Project Management

Situational Analysis Assignment - WAA airlines

Analysis of Airbus A3XX Project and its Impact on Aviation Industry

Case Study about What is Boeing?

Organization in Global Context

Strategic Management for Boeing and Airbus