Boeing Dreamliner vs. Airbus A380

Revision as of 19:28, August 11, 2008 (edit) Jcconnol - Sr. Director (Talk | contribs) (→Orders) ← Previous diff		Revision as of 19:37, August 11, 2008 (edit) (undo) Jcconnol - Sr. Director (Talk | contribs) (→Orders) Next diff →
Line 12:		Line 12:
	{| border="1" cellpadding="3" style="border-collapse:collapse" | align=center		{| border="1" cellpadding="3" style="border-collapse:collapse" | align=center
-	|+ '''Total Airbus A380 and Boeing 787 Dreamliner Orders as of August 7, 2008'''<ref>[http://www.telegraph.co.uk/travel/737906/Airbus-A380-vs-Boeing-Dreamliner.html Airbus A380 vs Boeing Dreamliner]</ref>	+	|+ '''Total Airbus A380 and Boeing 787 Dreamliner Orders as of August 7, 2008'''<ref>[http://en.wikipedia.org/wiki/List_of_Boeing_787_orders Wikipedia: Dreamliner Orders]</ref> <ref>[http://en.wikipedia.org/wiki/List_of_Airbus_A380_orders_and_deliveries Wikipedia: A380 Orders]</ref>
	|- bgcolor=lightblue		|- bgcolor=lightblue
	!Plane		!Plane

---

Revision as of 19:37, August 11, 2008

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, significant backlogs, 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 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. However, 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.

Though these new airplanes will prolong the deep-rooted rivalry of Boeing and Airbus, 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 fact that Boeing and Airbus took diverging paths with their new aircraft installations means that perhaps the two can coexist in niche roles.

Orders

Total Airbus A380 and Boeing 787 Dreamliner Orders as of August 7, 2008^{[2] [3]}

Plane	Orders
A380	192
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^[4] Boeing's Dreamliner has a large backlog to address. As of July 28, 2008 Boeing has 896 total orders^[5] 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).^[5]

The Airbus A380, whose first commercial flight occurred in October 2007, also has a hefty order count of 192 planes^[6] as of August 7, 2008. Note that this count includes only the A380 model, and not the A380F as production delays and backlogs forced Airbus to focus on the commercial A380.^[7] However, this release came after two years of their own delays and nearly €5 billion over budget.^[8] The top 6 A380 orders come from: Emirates Ariline (58), Quantas Airways (20), Singapore Airlines (19), Lufthansa (15), Air France (12) and British Airways (12).^[6]

Airbus announced its first six-month schedule delay in June of 2005, followed by two further delays in June and October of 2006.^[9] Their schedule delays consisted of pushing back delivery dates and number of plane shipments. These delays caused Airbus to temporarily shift its focus from the A380F freighter to the A380 commercial plane in order to stick to the delayed schedules. The company cites internal wiring problems as well as airline customizations^[9] 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.^[10]

However, the seemingly endless delays for the Dreamliner also hurts Boeing's competitive position. For instance, 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.^[11] 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. Moreover, on August 7, 2008, Boeing lost its first 787 order as Azerbaijan Airlines reduced its original order from three to two.^[12]

Competitive Overview

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:

• 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.^[13] However, GE beat out Rolls Royce in a $2.5 billion engine supplying deal with Airbus back in 2002.^[14]
• 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.^[15] Also, Boeing has completed at least four deals with Honeywell for the Dreamliner, including a $2.6 billion December 2004 agreement for exterior lighting.^[16]
• 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^[17] as well as $3.5 billion in contracts with Boeing.^[18] 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^[19].
• 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.^[20] Boeing and Thales have teamed up to provide program management and systems engineering in a contract valued at £16 billion.^[21]
• 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.^[22]
• 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.^[23] Boeing completed a similar deal in 2006 with the Russian company, worth $22 billion for engineering services and titanium products for 30 years.^[24]
• 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^[25] 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.^[26]

Larger Airbus A380 Winners

• 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^[27] 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.^[28]

Larger Boeing 787 Dreamliner Winners

• Allegheny Technologies (ATI) refines titanium and other metals for worldwide clients. Boeing and ATI signed a $2.5 billion deal in late 2006^[29] 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.^[30]
• Other companies that profit with Boeing include Mitsubishi Electric Corporation, Moog Inc., and Ducommun Technologies.

Comparison

Below is a chart comparing the statistics of the Airbus A380 family and the Boeing 787 Dreamliner family.

	Airbus A380[31]	Airbus A380F[31]	Boeing 787-3 Dreamliner[32]	Boeing 787-8 Dreamliner[32]	Boeing 787-9 Dreamliner[32]
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)[9]	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	---	---	3Q2009	---

References

1. ↑ BBC: Dreamliner Hit By Six Month Delay
2. ↑ Wikipedia: Dreamliner Orders
3. ↑ Wikipedia: A380 Orders
4. ↑ Boeing again delays 787 jetliner
5. ↑ ^{5.0 5.1} Wikipedia: 787 Orders
6. ↑ ^{6.0 6.1} Wikipedia: Airbus Orders and Deliveries
7. ↑ Airbus loses all A380F ordersnews
8. ↑ Airbus Goes Into The Red
9. ↑ ^{9.0 9.1 9.2} Wikipedia: Airbus A380 delays
10. ↑ Airbus confirms further A380 delay and launches company restructuring plan
11. ↑ Northrop Grumman gets $40B deal to replace Air Force tankers
12. ↑ http://seattlepi.nwsource.com/business/374054_dreamliner08.html
13. ↑ New York Times: Boeing Awards Engine Contract to G.E. and Rolls-Royce
14. ↑ General Electric Venture Wins $1.5 Billion Deal to Supply Airbus Engines
15. ↑ Honeywell wins $16 billion Airbus contract
16. ↑ Honeywell Wins Lighting Contract for Boeing 7E7
17. ↑ Rockwell Collins to Produce U.S. Army's JTRS as Part of Boeing Team; Anticipates More Than $2 Billion for Cluster 1 Program
18. ↑ Pilot Controls Expands Rockwell Collins Content on Boeing 7E7 Dreamliner
19. ↑ Rockwell Collins' information management, navigation capabilities selected for Airbus A350 XWB
20. ↑ Thales confirms wins Airbus plane parts deal
21. ↑ Thales-Boeing team to run UK's £16 billion military project news
22. ↑ Spirit AeroSystems Holdings, Inc. Reports Second Quarter 2008 Financial Results; Raises Full-Year 2008 EPS Guidance
23. ↑ Russia's VSMPO, Airbus sign $4 bln titanium deal
24. ↑ Titanium: Boeing Signs Deal with VSMPO-Avisma
25. ↑ Boeing 7E7 Aircraft Contract Could Bring Billions for Goodrich
26. ↑ Goodrich Selected to Supply Landing Gear for the Airbus A380; Contract Value Could Exceed $2 Billion Over 20 Years
27. ↑ Airbus selects DHL as lead transport provider
28. ↑ Airbus signs multi-year contracts with Kuehne + Nagel and DHL
29. ↑ Allegheny Technologies and Boeing Sign Long-Term Titanium Products Supply Agreement
30. ↑ [http://www.boeing.com/commercial/news/2005/q2/nr_050503g.html Boeing Names Donaldson to Provide New 787 Air Purification System}
31. ↑ ^{31.0 31.1} Airbus Product Viewer
32. ↑ ^{32.0 32.1 32.2} Boeing 787 Dreamliner Fact Sheet

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.