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Boeing Dreamliner vs. Airbus A380 |
| Revision as of 13:38, August 15, 2008 (edit) Bpan - Sr. Director (Talk | contribs) (→Orders) ← Previous diff |
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| Within one of the larger [[duopoly]] industries, the [[Boeing Company (BA)|Boeing]]-[[EADS NV (EADSY)|Airbus]] aircraft battle wages on with Boeing's 787 Dreamliner and Airbus' A380. Marred by production delays and rising [[Oil Prices|fuel prices]], the rivalry is as intense as ever. | Within one of the larger [[duopoly]] industries, the [[Boeing Company (BA)|Boeing]]-[[EADS NV (EADSY)|Airbus]] aircraft battle wages on with Boeing's 787 Dreamliner and Airbus' A380. Marred by production delays and rising [[Oil Prices|fuel prices]], the rivalry is as intense as ever. | ||
| - | With this new issue in the plane production competition, Boeing and Airbus split ways on their fuel-conserving strategies. With the monstrous size of the A380, Airbus aims for a new level of airborne mass transit as it opted for two decks each with dual isles and a total carrying capacity of over 520. The A380 family is designed for longer trips and more passengers, seeking fuel-conservation by consolidation.{{fact}} On the other hand, Boeing explored a handful of roles for its three 787 Dreamliner planes (its first new planes since 1995). While the 787-3 is modeled for large capacity-short distance, the 787-8 and 787-9 look to provide smaller capacity-longer distance aircraft. {{fact}} | + | With this new issue in the plane production competition, Boeing and Airbus split ways on their fuel-conserving strategies. With the monstrous size of the A380, Airbus aims for a new level of airborne mass transit as it opted for two decks each with dual isles and a total carrying capacity of over 520. The A380 family is designed for longer trips and more passengers, seeking fuel-conservation by consolidation.<ref name="twenty">[http://www.straightstocks.com/investing-in-canada-stocks/can-boeing%E2%80%99s-787-dreamliner-get-off-the-ground-or-will-airbus-ride-the-a380-to-new-heights/ Can Boeing’s 787 Dreamliner Get off the Ground - or will Airbus Ride the A380 to New Heights?]</ref> On the other hand, Boeing explored a handful of roles for its three 787 Dreamliner planes (its first new planes since 1995). While the 787-3 is modeled for large capacity-short distance, the 787-8 and 787-9 look to provide smaller capacity-longer distance aircraft.<ref name="twenty"/> |
| [[Image:Comparison.gif|frame|right|Structural Comparison of the Airbus 380 to the Boeing 787-8 Dreamliner<ref>[http://news.bbc.co.uk/nolpda/ukfs_news/hi/newsid_7038000/7038294.stm BBC: Dreamliner Hit By Six Month Delay]</ref>]] | [[Image:Comparison.gif|frame|right|Structural Comparison of the Airbus 380 to the Boeing 787-8 Dreamliner<ref>[http://news.bbc.co.uk/nolpda/ukfs_news/hi/newsid_7038000/7038294.stm BBC: Dreamliner Hit By Six Month Delay]</ref>]] | ||
| The niches of the A380 family and 787 Dreamliner group do not completely overlap. Boeing's 787-3 is closest in statistics to the A380, yet the A380 has over one and a half times the capacity and nearly three times the range. Moreover, with smaller and more fuel-efficient planes in the 787-8 and the 787-9, Boeing avoided direct competition with the A380. | The niches of the A380 family and 787 Dreamliner group do not completely overlap. Boeing's 787-3 is closest in statistics to the A380, yet the A380 has over one and a half times the capacity and nearly three times the range. Moreover, with smaller and more fuel-efficient planes in the 787-8 and the 787-9, Boeing avoided direct competition with the A380. | ||
| + | |||
| + | Within the aircraft-producing duel, many companies are invested in Boeing or Airbus. For instance, [[General Electric Company (GE)|General Electric]], [[Goodrich Corporation (GR)|Goodrich]], and [[Thales]] -- an information systems manufacturer -- hold multi-billion dollar contracts with Boeing. These firms create, supply, and assemble all sorts of airplane parts, ranging from engines to landing systems. On the other side of the industry, Airbus has signed billion dollar agreements with transportation and logistics giant [[DHL]] as well as engine producer [[Honeywell International (HON)|Honeywell International]] However, a handful of suppliers are engaged on both sides of the industry. Aviation systems producer [[Rockwell Collins (COL)|Rockwell Collins]] and electric/landing systems manufacturer [[Goodrich Corporation (GR)|Goodrich]] make parts for both Airbus and Boeing. | ||
| ==Orders== | ==Orders== | ||
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| |787 Dreamliner | |787 Dreamliner | ||
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| Filled with its share of large backlogs and production/delivery delays, the A380-787 Dreamliner battle may very well be won by the company who can best fulfill their contracts. | Filled with its share of large backlogs and production/delivery delays, the A380-787 Dreamliner battle may very well be won by the company who can best fulfill their contracts. | ||
| - | Slated to be released in 3Q2009<ref>[http://www.theglobeandmail.com/servlet/Page/document/v5/content/subscribe?user_URL=http://www.globeinvestor.com%2Fservlet%2Fstory%2FRTGAM.20080409.wboeing0409%2FGIStory%2F&ord=63587143&brand=globeinvestor&force_login=true Boeing again delays 787 jetliner]</ref> Boeing's Dreamliner has a large backlog to address. As of July 28, 2008 Boeing has 896 total orders<ref name="ones">[http://en.wikipedia.org/wiki/List_of_Boeing_787_orders Wikipedia: 787 Orders]</ref> for all three Dreamliner designs (787-3, 8, and 9). The six largest orders include the International Lease Finance Corporation (74), Quantas Airways (65), All Nippon Airways (50), Air Canada (37), and Ethiad Airways (35) and Japan Airways (35).<ref name="ones"/> | + | Slated to be released in 3Q2009<ref>[http://www.theglobeandmail.com/servlet/Page/document/v5/content/subscribe?user_URL=http://www.globeinvestor.com%2Fservlet%2Fstory%2FRTGAM.20080409.wboeing0409%2FGIStory%2F&ord=63587143&brand=globeinvestor&force_login=true Boeing again delays 787 jetliner]</ref> Boeing's Dreamliner has a large backlog to address. As of July 28, 2008 Boeing has 896 total orders<ref name="ones">[http://en.wikipedia.org/wiki/List_of_Boeing_787_orders Wikipedia: 787 Orders]</ref> for all three Dreamliner designs (787-3, 8, and 9). The six largest orders include the International Lease Finance Corporation (74), Qantas Airways (65), All Nippon Airways (50), Air Canada (37), and Ethiad Airways (35) and Japan Airways (35).<ref name="ones"/> |
| - | The Airbus A380, whose first commercial flight occurred in October 2007, also has a hefty order count of 192 planes<ref name="twos">[http://en.wikipedia.org/wiki/List_of_Airbus_A380_orders_and_deliveries Wikipedia: Airbus Orders and Deliveries]</ref> as of August 7, 2008. Note that this count includes only the A380 model, and not the A380F (freight model) as production delays and backlogs forced Airbus to focus on the commercial A380.<ref>[http://www.domainb.com/aero/20070303_airbus.htm Airbus loses all A380F ordersnews]</ref> However, this release came after two years of their own delays and nearly €5 billion over budget.<ref>[http://www.spiegel.de/international/0,1518,470859,00.html Airbus Goes Into The Red]</ref> Total lost earnings from Airbus delays are estimated to be $6 billion.<ref name="trips">[http://www.aerospace-technology.com/features/feature2055/ Pies in the sky – A380 and Dreamliner Delays]</ref> The top 6 A380 orders come from: Emirates Ariline (58), Quantas Airways (20), Singapore Airlines (19), Lufthansa (15), [[Air France-KLM (AFLYY)|Air France]] (12) and [[British Airways ADR (BAIRY)|British Airways]] (12).<ref name="twos"/> | + | The Airbus A380, whose first commercial flight occurred in October 2007, also has a hefty order count of 192 planes<ref name="twos">[http://en.wikipedia.org/wiki/List_of_Airbus_A380_orders_and_deliveries Wikipedia: Airbus Orders and Deliveries]</ref> as of August 7, 2008. Note that this count includes only the A380 model, and not the A380F (freight model) as production delays and backlogs forced Airbus to focus on the commercial A380.<ref>[http://www.domainb.com/aero/20070303_airbus.htm Airbus loses all A380F ordersnews]</ref> However, this release came after two years of their own delays and nearly €5 billion over budget.<ref>[http://www.spiegel.de/international/0,1518,470859,00.html Airbus Goes Into The Red]</ref> Total lost earnings from Airbus delays are estimated to be $6 billion.<ref name="trips">[http://www.aerospace-technology.com/features/feature2055/ Pies in the sky – A380 and Dreamliner Delays]</ref> The top 6 A380 orders come from: Emirates Ariline (58), Qantas Airways (20), Singapore Airlines (19), Lufthansa (15), [[Air France-KLM (AFLYY)|Air France]] (12) and [[British Airways ADR (BAIRY)|British Airways]] (12).<ref name="twos"/> |
| Airbus announced its first six-month schedule delay in June of 2005, followed by two further delays in June and October of 2006.<ref name="three">[http://en.wikipedia.org/wiki/Airbus_A380#Delivery_delays Wikipedia: Airbus A380 delays]</ref> Their schedule delays consisted of pushing back delivery dates and number of plane shipments. The company cites internal wiring problems as well as airline customizations<ref name="three"/> as the main cause for the initial delays. However, on October 3, 2006 Airbus announced a newly restructured production and delivery schedule, aiming to reach their full production rate of 45 planes per year in 2010.<ref>[http://www.airbus.com/en/presscentre/pressreleases/pressreleases_items/06_10_03_a380_delays_company_restructuring_plan.html Airbus confirms further A380 delay and launches company restructuring plan]</ref> | Airbus announced its first six-month schedule delay in June of 2005, followed by two further delays in June and October of 2006.<ref name="three">[http://en.wikipedia.org/wiki/Airbus_A380#Delivery_delays Wikipedia: Airbus A380 delays]</ref> Their schedule delays consisted of pushing back delivery dates and number of plane shipments. The company cites internal wiring problems as well as airline customizations<ref name="three"/> as the main cause for the initial delays. However, on October 3, 2006 Airbus announced a newly restructured production and delivery schedule, aiming to reach their full production rate of 45 planes per year in 2010.<ref>[http://www.airbus.com/en/presscentre/pressreleases/pressreleases_items/06_10_03_a380_delays_company_restructuring_plan.html Airbus confirms further A380 delay and launches company restructuring plan]</ref> | ||
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| However, Boeing has its fair share of delays as well. April 9, 2008 saw Boeing delay its production and delivery schedule for the Dreamliner a fourth time, making for a 3Q2009 debut. In the Dreamliner's case, Boeing blames unspecified design flaws<ref>[http://in.rediff.com/money/2008/mar/20boe.htm Boeing admits Dreamliner delay]</ref> as the culprit, resulting in $4.1 million<ref name="trips"/> in penalty payments as of July 2008. The seemingly continuous delays are damaging the reliability of Boeing. On August 7, 2008, Boeing lost its first 787 order as Azerbaijan Airlines reduced its original order from three to two.<ref>[http://seattlepi.nwsource.com/business/374054_dreamliner08.html Boeing loses first 787 order since announcing delays]</ref> | However, Boeing has its fair share of delays as well. April 9, 2008 saw Boeing delay its production and delivery schedule for the Dreamliner a fourth time, making for a 3Q2009 debut. In the Dreamliner's case, Boeing blames unspecified design flaws<ref>[http://in.rediff.com/money/2008/mar/20boe.htm Boeing admits Dreamliner delay]</ref> as the culprit, resulting in $4.1 million<ref name="trips"/> in penalty payments as of July 2008. The seemingly continuous delays are damaging the reliability of Boeing. On August 7, 2008, Boeing lost its first 787 order as Azerbaijan Airlines reduced its original order from three to two.<ref>[http://seattlepi.nwsource.com/business/374054_dreamliner08.html Boeing loses first 787 order since announcing delays]</ref> | ||
| - | On March 1, 2008, the US Air Force announced that it would enter into a $40 billion contract with Airbus and [[Northrop Grumman (NOC)|Northrop Grumman]], a military and defense aircraft parts manufacturer, over the domestic company Boeing.<ref>[http://edition.cnn.com/2008/US/02/29/air.force.tankers/index.html Northrop Grumman gets $40B deal to replace Air Force tankers]</ref> The USAF cited the A380's larger size as the main deciding factor, but multiple delays on the initial release and first commercial flight certainly did not help. | + | On March 1, 2008, the US Air Force announced that it would enter into a $40 billion contract with Airbus and [[Northrop Grumman (NOC)|Northrop Grumman]], a military and defense aircraft parts manufacturer, over the domestic company Boeing.<ref>[http://edition.cnn.com/2008/US/02/29/air.force.tankers/index.html Northrop Grumman gets $40B deal to replace Air Force tankers]</ref> The USAF cited the A300's larger size as the main deciding factor, but multiple delays on the initial release and first commercial flight certainly did not help. |
| - | ==Competitive Overview== | + | ==Companies that win from both sides== |
| - | Within the aircraft industry face-off, many companies do business for both Boeing and Airbus. However, a handful of companies benefit with every plane sold, including: | + | Within the aircraft industry face-off, many companies do business for both Boeing and Airbus. Several companies have major contracts with both sides, including: |
| - | * [[General Electric Company (GE)]], a worldwide technology producer and Rolls Royce (RR), a British aircraft engine company, work together to manufacture engines for Boeing. In 2004, Boeing announced that GE and RR would produce the engines for the Dreamliner in a contract that runs for 25 years and up to $40 billion.<ref>[http://query.nytimes.com/gst/fullpage.html?res=9807E4D71638F934A35757C0A9629C8B63 New York Times: Boeing Awards Engine Contract to G.E. and Rolls-Royce]</ref> However, GE beat out Rolls Royce in a $2.5 billion engine supplying deal with Airbus back in 2002.<ref>[http://www.accessmylibrary.com/coms2/summary_0286-5975572_ITM General Electric Venture Wins $1.5 Billion Deal to Supply Airbus Engines]</ref> | ||
| - | * [[Honeywell International (HON)]] is a comprehensive engine manufacturer and also produces cockpit electronics for airplanes. Honeywell does business for Boeing and Airbus, and is a winner with the Dreamliner and the A380. Airbus signed a $16 billion contract with Honeywell, putting the firm in charge of the service and mechanical systems aboard the A380.<ref>[http://www.iht.com/articles/2007/09/19/bloomberg/bxair.php Honeywell wins $16 billion Airbus contract]</ref> Also, Boeing has completed at least four deals with Honeywell for the Dreamliner, including a $2.6 billion December 2004 agreement for exterior lighting.<ref>[http://www.nema.org/media/ind/20041209a.cfm Honeywell Wins Lighting Contract for Boeing 7E7]</ref> | ||
| * [[Rockwell Collins (COL)]] is a producer of aviation, information technology, pilot control, and cabin systems for commercial and governmental clients. As a Boeing partner, COL anticipates $2 billion in contracts with the US Army<ref>[http://www.rockwellcollins.com/news/page2615.html Rockwell Collins to Produce U.S. Army's JTRS as Part of Boeing Team; Anticipates More Than $2 Billion for Cluster 1 Program]</ref> as well as $3.5 billion in contracts with Boeing.<ref>[http://findarticles.com/p/articles/mi_m0EIN/is_2004_June_3/ai_n6053632 Pilot Controls Expands Rockwell Collins Content on Boeing 7E7 Dreamliner]</ref> Though no deals specific to the A380 have been released, Airbus signed an agreement in 2008 with COL for navigation and information systems for the Airbus A350 worth about $2.5 billion<ref>[http://74.125.45.104/search?q=cache:cY7dPgmmt00J:www.rockwellcollins.com/news/page10874.html+rockwell+collins+billions+airbus&hl=en&ct=clnk&cd=1&gl=us Rockwell Collins' information management, navigation capabilities selected for Airbus A350 XWB]</ref>. | * [[Rockwell Collins (COL)]] is a producer of aviation, information technology, pilot control, and cabin systems for commercial and governmental clients. As a Boeing partner, COL anticipates $2 billion in contracts with the US Army<ref>[http://www.rockwellcollins.com/news/page2615.html Rockwell Collins to Produce U.S. Army's JTRS as Part of Boeing Team; Anticipates More Than $2 Billion for Cluster 1 Program]</ref> as well as $3.5 billion in contracts with Boeing.<ref>[http://findarticles.com/p/articles/mi_m0EIN/is_2004_June_3/ai_n6053632 Pilot Controls Expands Rockwell Collins Content on Boeing 7E7 Dreamliner]</ref> Though no deals specific to the A380 have been released, Airbus signed an agreement in 2008 with COL for navigation and information systems for the Airbus A350 worth about $2.5 billion<ref>[http://74.125.45.104/search?q=cache:cY7dPgmmt00J:www.rockwellcollins.com/news/page10874.html+rockwell+collins+billions+airbus&hl=en&ct=clnk&cd=1&gl=us Rockwell Collins' information management, navigation capabilities selected for Airbus A350 XWB]</ref>. | ||
| - | * [[Thales]] is a manufacturer of information systems for aviation and defense clients. Airbus and Thales signed a 20 year deal in early 2008 for the aviation systems aboard the A380 which is expected to total €2 billion.<ref>[http://uk.reuters.com/article/UK_SMALLCAPSRPT/idUKPAC00914820080122 Thales confirms wins Airbus plane parts deal]</ref> Boeing and Thales have teamed up to provide program management and systems engineering in a contract valued at £16 billion.<ref>[http://www.domain-b.com/companies/companies_b/boeing/20071006_billion.html Thales-Boeing team to run UK's £16 billion military project news]</ref> | + | * [[Goodrich Corporation (GR)]], a U.S. airplane parts maker producing engine, internal electronic, and landing systems. On April 16, 2004 Boeing announced that Goodrich would be responsible for the landing gear and thrust components on the Dreamliner for up to 10 years and $4 billion dollars<ref>[http://www.allbusiness.com/company-activities-management/contracts-bids/10305144-1.html Boeing 7E7 Aircraft Contract Could Bring Billions for Goodrich]</ref> when its 2007 annual revenue is slightly over $6 billion. In 2007, Airbus and Goodrich signed a $10 billion deal, initially for the Airbus A350, that is expected to last 20 years.<ref>[http://news.airwise.com/story/view/1168376407.html Goodrich Wins USD$10 Bln Airbus Contract]</ref> |
| * [[Spirit Aerosystems Holdings (SPR)]] is a designer and manufacturer of aircraft parts. In 2008, SPR will earn $4.4 billion in revenue from the two companies combined, though the individual contract amounts were not included.<ref>[http://www.newswire.ca/en/releases/archive/July2008/31/c8735.html Spirit AeroSystems Holdings, Inc. Reports Second Quarter 2008 Financial Results; Raises Full-Year 2008 EPS Guidance]</ref> | * [[Spirit Aerosystems Holdings (SPR)]] is a designer and manufacturer of aircraft parts. In 2008, SPR will earn $4.4 billion in revenue from the two companies combined, though the individual contract amounts were not included.<ref>[http://www.newswire.ca/en/releases/archive/July2008/31/c8735.html Spirit AeroSystems Holdings, Inc. Reports Second Quarter 2008 Financial Results; Raises Full-Year 2008 EPS Guidance]</ref> | ||
| - | * [[VSMPO-AVISMA]] is a Russian refiner or titanium and other special metals. June 14, 2008 saw Airbus and VSMPO lock up a deal through 2020 valued at $4 billion.<ref>[http://uk.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUKL1412945120080714 Russia's VSMPO, Airbus sign $4 bln titanium deal]</ref> Boeing completed a similar deal in 2006 with the Russian company, worth $22 billion for engineering services and titanium products for 30 years.<ref>[http://www.defenseindustrydaily.com/titanium-boeing-signs-deal-with-vsmpoavisma-02528/ Titanium: Boeing Signs Deal with VSMPO-Avisma]</ref> | + | * [[VSMPO-AVISMA]] is a Russian refiner for titanium and other special metals. June 14, 2008 saw Airbus and VSMPO lock up a deal through 2020 valued at $4 billion.<ref>[http://uk.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUKL1412945120080714 Russia's VSMPO, Airbus sign $4 bln titanium deal]</ref> Boeing completed a similar deal in 2006 with the Russian company, worth $22 billion for engineering services and titanium products for 30 years.<ref>[http://www.defenseindustrydaily.com/titanium-boeing-signs-deal-with-vsmpoavisma-02528/ Titanium: Boeing Signs Deal with VSMPO-Avisma]</ref> |
| - | * [[Goodrich Corporation (GR)]], a U.S. airplane parts maker producing engine, internal electronic, and landing systems. On April 16, 2004 Boeing announced that Goodrich would be responsible for the landing gear and thrust components on the Dreamliner for up to 10 years and $4 billion dollars<ref>[http://www.allbusiness.com/company-activities-management/contracts-bids/10305144-1.html Boeing 7E7 Aircraft Contract Could Bring Billions for Goodrich]</ref> when its 2007 annual revenue is slightly over $6 billion. In 2001, Goodrich also signed a deal with Airbus to supply the landing gear for the plane, totaling $2 billion over 20 years.<ref>[http://ir.goodrich.com/phoenix.zhtml?ID=652680&c=60759&highlight=&p=irol-newsArticle Goodrich Selected to Supply Landing Gear for the Airbus A380; Contract Value Could Exceed $2 Billion Over 20 Years]</ref> | + | |
| - | ==Larger Airbus A380 Winners== | + | However, many companies benefit with one side of the duopoly, or hold larger contracts with one of Boeing and Airbus. Firms that are on either side of the fence include: |
| - | * [[Dhl]] is a transport company specializing in express shipping. On June 30, 2008, Airbus and DHL announced a 5 year agreement, whereby DHL becomes the lead-transport provider and a tier-one partner of Airbus<ref>[http://www.dhl.com/publish/g0/en/press/release/2008/300608_2.high.html Airbus selects DHL as lead transport provider]</ref> DHL does general transportation work for Airbus, including the transit of parts to their factories. | + | ==Airbus A380 Winners== |
| + | |||
| + | * [[Honeywell International (HON)]] is a engine manufacturer and also produces cockpit electronics for airplanes. Airbus signed a $16 billion contract with Honeywell, putting the firm in charge of the service and mechanical systems aboard the A380.<ref>[http://www.iht.com/articles/2007/09/19/bloomberg/bxair.php Honeywell wins $16 billion Airbus contract]</ref> Also, Boeing has completed at least four deals with Honeywell for the Dreamliner, including a $2.6 billion December 2004 agreement for exterior lighting.<ref>[http://www.nema.org/media/ind/20041209a.cfm Honeywell Wins Lighting Contract for Boeing 7E7]</ref> | ||
| + | * [[DHL]] is a transport company specializing in express shipping. On June 30, 2008, Airbus and DHL announced a 5 year agreement, whereby DHL becomes the lead-transport provider and a tier-one partner of Airbus<ref>[http://www.dhl.com/publish/g0/en/press/release/2008/300608_2.high.html Airbus selects DHL as lead transport provider]</ref> DHL does general transportation work for Airbus, including the transit of parts to their factories. | ||
| * Kuehne & Nagel is a global logistics firm that manages warehouse facilities for Airbus. Airbus also signed a multi-year deal with Kuehne & Nagel, putting the company in charge of Airbus warehouse consolidation within Europe.<ref>[http://www.eyefortransport.com/content/airbus-signs-multi-year-contracts-kuehne-nagel-and-dhl Airbus signs multi-year contracts with Kuehne + Nagel and DHL]</ref> | * Kuehne & Nagel is a global logistics firm that manages warehouse facilities for Airbus. Airbus also signed a multi-year deal with Kuehne & Nagel, putting the company in charge of Airbus warehouse consolidation within Europe.<ref>[http://www.eyefortransport.com/content/airbus-signs-multi-year-contracts-kuehne-nagel-and-dhl Airbus signs multi-year contracts with Kuehne + Nagel and DHL]</ref> | ||
| - | ==Larger Boeing 787 Dreamliner Winners== | + | ==Boeing 787 Dreamliner Winners== |
| + | * [[General Electric Company (GE)]], a worldwide technology producer and Rolls Royce (RR), a British aircraft engine company, work together to manufacture engines for Boeing. In 2004, Boeing announced that GE and RR would produce the engines for the Dreamliner in a contract that runs for 25 years and up to $40 billion.<ref>[http://query.nytimes.com/gst/fullpage.html?res=9807E4D71638F934A35757C0A9629C8B63 New York Times: Boeing Awards Engine Contract to G.E. and Rolls-Royce]</ref> However, GE beat out Rolls Royce in a $2.5 billion engine supplying deal with Airbus back in 2002.<ref>[http://www.accessmylibrary.com/coms2/summary_0286-5975572_ITM General Electric Venture Wins $1.5 Billion Deal to Supply Airbus Engines]</ref> | ||
| + | * [[Thales]] is a manufacturer of information systems for aviation and defense clients. Boeing and Thales have teamed up to provide program management and systems engineering in a contract valued at £16 billion.<ref>[http://www.domain-b.com/companies/companies_b/boeing/20071006_billion.html Thales-Boeing team to run UK's £16 billion military project news]</ref> Also, Airbus and Thales signed a 20 year deal in early 2008 for the aviation systems aboard the A380 which is expected to total €2 billion.<ref>[http://uk.reuters.com/article/UK_SMALLCAPSRPT/idUKPAC00914820080122 Thales confirms wins Airbus plane parts deal]</ref> | ||
| * [[Allegheny Technologies (ATI)]] refines titanium and other metals for worldwide clients. Boeing and ATI signed a $2.5 billion deal in late 2006<ref>[http://news.thomasnet.com/companystory/502930 Allegheny Technologies and Boeing Sign Long-Term Titanium Products Supply Agreement]</ref> that runs through 2015. | * [[Allegheny Technologies (ATI)]] refines titanium and other metals for worldwide clients. Boeing and ATI signed a $2.5 billion deal in late 2006<ref>[http://news.thomasnet.com/companystory/502930 Allegheny Technologies and Boeing Sign Long-Term Titanium Products Supply Agreement]</ref> that runs through 2015. | ||
| * [[Donaldson Company (DCI)]] produces engine and filtration systems for worldwide clients. On May 3, 2005, Boeing announced that the air filtration systems on the Dreamliner would be done by Donaldson.<ref>[http://www.boeing.com/commercial/news/2005/q2/nr_050503g.html Boeing Names Donaldson to Provide New 787 Air Purification System}</ref> | * [[Donaldson Company (DCI)]] produces engine and filtration systems for worldwide clients. On May 3, 2005, Boeing announced that the air filtration systems on the Dreamliner would be done by Donaldson.<ref>[http://www.boeing.com/commercial/news/2005/q2/nr_050503g.html Boeing Names Donaldson to Provide New 787 Air Purification System}</ref> | ||
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| | colspan="1"| '''Max Fuel Efficiency (km/Liter)''' || align="center" | 0.049 || align = "center" | 0.034 || align = "center" | 0.045 || align = "center" | 0.120 || align = "center" | 0.113 | | colspan="1"| '''Max Fuel Efficiency (km/Liter)''' || align="center" | 0.049 || align = "center" | 0.034 || align = "center" | 0.045 || align = "center" | 0.120 || align = "center" | 0.113 | ||
| |- | |- | ||
| - | | colspan="1"| '''Entry into Service''' || align="center" | October 2007 || align = "center" | --- || align = "center" | --- || align = "center" | 3Q2009 || align = "center" | --- | + | | colspan="1"| '''Entry into Service''' || align="center" | October 2007 || align = "center" | --- || align = "center" | --- || align = "center" | 1Q2010 || align = "center" | --- |
| |} | |} | ||
| ==References== | ==References== | ||
| <references/> | <references/> | ||
| This article describes a concept which could impact a variety of companies, countries or industries. To see what companies and articles reference this concept page, click here. |
Within one of the larger duopoly industries, the Boeing-Airbus aircraft battle wages on with Boeing's 787 Dreamliner and Airbus' A380. Marred by production delays and rising fuel prices, the rivalry is as intense as ever.
With this new issue in the plane production competition, Boeing and Airbus split ways on their fuel-conserving strategies. With the monstrous size of the A380, Airbus aims for a new level of airborne mass transit as it opted for two decks each with dual isles and a total carrying capacity of over 520. The A380 family is designed for longer trips and more passengers, seeking fuel-conservation by consolidation.[1] On the other hand, Boeing explored a handful of roles for its three 787 Dreamliner planes (its first new planes since 1995). While the 787-3 is modeled for large capacity-short distance, the 787-8 and 787-9 look to provide smaller capacity-longer distance aircraft.[1]
The niches of the A380 family and 787 Dreamliner group do not completely overlap. Boeing's 787-3 is closest in statistics to the A380, yet the A380 has over one and a half times the capacity and nearly three times the range. Moreover, with smaller and more fuel-efficient planes in the 787-8 and the 787-9, Boeing avoided direct competition with the A380.
Within the aircraft-producing duel, many companies are invested in Boeing or Airbus. For instance, General Electric, Goodrich, and Thales -- an information systems manufacturer -- hold multi-billion dollar contracts with Boeing. These firms create, supply, and assemble all sorts of airplane parts, ranging from engines to landing systems. On the other side of the industry, Airbus has signed billion dollar agreements with transportation and logistics giant DHL as well as engine producer Honeywell International However, a handful of suppliers are engaged on both sides of the industry. Aviation systems producer Rockwell Collins and electric/landing systems manufacturer Goodrich make parts for both Airbus and Boeing.
Contents |
Orders| Plane | Orders |
|---|---|
| A380 | 200 |
| 787 Dreamliner | 896 |
Filled with its share of large backlogs and production/delivery delays, the A380-787 Dreamliner battle may very well be won by the company who can best fulfill their contracts.
Slated to be released in 3Q2009[5] Boeing's Dreamliner has a large backlog to address. As of July 28, 2008 Boeing has 896 total orders[6] for all three Dreamliner designs (787-3, 8, and 9). The six largest orders include the International Lease Finance Corporation (74), Qantas Airways (65), All Nippon Airways (50), Air Canada (37), and Ethiad Airways (35) and Japan Airways (35).[6]
The Airbus A380, whose first commercial flight occurred in October 2007, also has a hefty order count of 192 planes[7] as of August 7, 2008. Note that this count includes only the A380 model, and not the A380F (freight model) as production delays and backlogs forced Airbus to focus on the commercial A380.[8] However, this release came after two years of their own delays and nearly €5 billion over budget.[9] Total lost earnings from Airbus delays are estimated to be $6 billion.[10] The top 6 A380 orders come from: Emirates Ariline (58), Qantas Airways (20), Singapore Airlines (19), Lufthansa (15), Air France (12) and British Airways (12).[7]
Airbus announced its first six-month schedule delay in June of 2005, followed by two further delays in June and October of 2006.[11] Their schedule delays consisted of pushing back delivery dates and number of plane shipments. The company cites internal wiring problems as well as airline customizations[11] as the main cause for the initial delays. However, on October 3, 2006 Airbus announced a newly restructured production and delivery schedule, aiming to reach their full production rate of 45 planes per year in 2010.[12]
However, Boeing has its fair share of delays as well. April 9, 2008 saw Boeing delay its production and delivery schedule for the Dreamliner a fourth time, making for a 3Q2009 debut. In the Dreamliner's case, Boeing blames unspecified design flaws[13] as the culprit, resulting in $4.1 million[10] in penalty payments as of July 2008. The seemingly continuous delays are damaging the reliability of Boeing. On August 7, 2008, Boeing lost its first 787 order as Azerbaijan Airlines reduced its original order from three to two.[14]
On March 1, 2008, the US Air Force announced that it would enter into a $40 billion contract with Airbus and Northrop Grumman, a military and defense aircraft parts manufacturer, over the domestic company Boeing.[15] The USAF cited the A300's larger size as the main deciding factor, but multiple delays on the initial release and first commercial flight certainly did not help.
Companies that win from both sidesWithin the aircraft industry face-off, many companies do business for both Boeing and Airbus. Several companies have major contracts with both sides, including:
However, many companies benefit with one side of the duopoly, or hold larger contracts with one of Boeing and Airbus. Firms that are on either side of the fence include:
Airbus A380 Winners
Boeing 787 Dreamliner Winners
ComparisonBelow is a chart comparing the statistics of the Airbus A380 family and the Boeing 787 Dreamliner family.
| Airbus A380[34] | Airbus A380F[34] | Boeing 787-3 Dreamliner[35] | Boeing 787-8 Dreamliner[35] | Boeing 787-9 Dreamliner[35] | |
| Capacity (seats/aircraft) | 555 (max 840) | N/A | 290-330 | 210-250 | 250-290 |
| Range (km) | 15,200 | 10,400 | 4,650-5,650 | 14,200-15,200 | 14,800-15,750 |
| Flight Speed (mph) | 680 | 680 | 650 | 650 | 650 |
| Max Takeoff Weight (metric tons) | 560 | 590 | 165.1 | 219.5 | 244.9 |
| Max Fuel Capacity (Liters)[11] | 310,000 | 310,000 | 126,917 | 126,917 | 138,898 |
| Max Fuel Efficiency (km/Liter) | 0.049 | 0.034 | 0.045 | 0.120 | 0.113 |
| Entry into Service | October 2007 | --- | --- | 1Q2010 | --- |
References
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