Why Airbus and Boeing do not compete and dominate the market


It is no secret that Airbus and Boeing run a modern duopoly in the aircraft manufacturing industry. These two companies account for 99% of large aircraft orders worldwide, serving more than 4 billion air travelers a year. Their market dominance has been a common trend throughout history, and the future shows that it can continue.

Airbus airplane in flight
Airbus airplane on flight through Unsplash.

Why Airbus and Boeing dominate the market?

Two key factors are why Airbus and Boeing's sovereignty in the aircraft manufacturing industry: money and history. With these two factors on their side, Airbus and Boeing can easily maintain their positions as leading companies.

Construction aircraft require considerable cost. The high entry barrier includes costs associated not only with parts but with customer support, maintenance, technology and much more. These two companies are dominated by domestic and international demand, but large overheads have allowed them to buy regional leaders like Bombardier and Embraer.

Early entry into the productive market has allowed companies to develop close ties with their respective governments and industry-related organizations. Boeing, for example, is the 2ndnd the largest host in US pressures, with more than a third billion dollars spent.

Security is probably the most important aspect of air travel. The deep history of success for the two manufacturers has established their reputation as airplanes in the industry.

The rise of Boeing

Boeing Company started in 1916 and has dominated the market for more than a century of its existence. Boeing has created a stop for the construction of aircraft targeting the US government as its first major customer. The company sold aircraft to the Navy during World War I and expanded its military and even postal services over the coming decades. From 2018, 2 remainnd largest contractor to the US government.

Boeing became the preferred commercial aircraft for hauliers in 1958 when it introduced the 707 to the public. The model appealed to the public interest for a superior flight and shorter travel time than other airplane manufacturers on the market.

Boeing jet down
Seeking a Boeing Airplane in the sky through Unsplash.

The rise of Airbus

Airbus developed in Europe in response to Boeing's rapid growth. Germany, France and the United Kingdom met in 1967 to produce an aircraft that promoted technology and symbolized economic growth. The initial design of the first public airplane was welcomed by the public. In 1972, the A300B completed its first flight, allowing passengers to fly more for less.

The success of the first models allowed Airbus to take over the European market and other areas at a time when air travel was originally known as a means of transport. Airbus had a more gradual development than Boeing, but it was early on the market and the consistency of reliability made the company one of the world's leading manufacturers.

Airbus and Boeing's market share

After historical success, Airbus and Boeing also maintain their annual increases. Airbus delivered 800 aircraft worldwide in 2018, representing an 11% increase over the previous year. Boeing made a record with 806 planes delivered in 2018, an increase of 5.6% from 2017. Airbus and Boeing managed to outperform the S & P 500 in the last decade.

Delta Airplane at Chicago Airport O'Hare
Delta Airplane at Chicago O'Hare Airport via Unsplash.

Airbus and Boeing are the majority of the fleets maintained by all leading carriers around the world. Companies, including Spirit and Frontier, only use Airbus in their fleets, while Southwest uses Boeing exclusively. Airline legacies such as Delta include a mix of both companies to cover their fleets.


Source link