Big challenge for Boeing and Airbus

 On 18 Jun, 2013 BBC News published an articles about the Paris Air Show. As Boeing and Airbus is the biggest rivals in plane-making market, the increasing plane makers from other countries lead the competition into a intenser situation. Canada, China, Russia etc. countries are trying to take part in this market.

Here is the link of the article:
http://www.bbc.co.uk/news/business-22954428

pic from http://forums.x-plane.org/index.php?app=blog&module=display&section=blog&blogid=409&showentry=866

Buy the Boeing? or the Airbus?

Also from BBC News, we can find out another article about the competition between these two companies:

Boeing unveils Dreamliner plane

From this article, the author compared Boeing 787 dreamliner with Airbus A380 and the lastest model A350.  With fuel efficiently, less CO2 produce, lighter material for plane body, 787 dreamliner not only focus on the fronteier of the plane but also improve the comfort level for passengers.

The Air War has never been stopped:

 1.Here the first flight of A350 XWB

2. The comparison between Boeing 787 & A350

Stating price:               Airbus $245.5M         Boeing $243.6M

Wingspan:                    Airbus 213 feets        Boeing 197 feets

Number of passenges:  Airbus 270                 Boeing 250-290(max)

Range:                         Airbus 9755 miles      Boeing 9786 miles

Speed:                         both can up to 560miles / hour
                                   can fly from US to Singapore in around 17 hours

Composite material:     Airbus 35%                Boeing 50%

Both planes are similar so that they are the real rival of each other. More intense the competitions are, more development of aviation get improved. The better quality of plane, offers better quality of services and contributes more to the world trade.

How aviation impacts global business

Travel is a major part of contribution to the economy in the world. It contributes 1.8 trillion to the world's GDP in 2011 directly and offers 99 million direct jobs globally which is 3.4% of total employment.

As more than 51% international tourists travel by air nowadays, aviation plays a vital role in supporting tourism.

furthermore, aviation impacts whole economy of world. In USA, although the trade balance has been negative since 1971, the civil aircraft and aircraft parts manufacturing industry contributes $75 billion in net exports to the U.S trade balance in 2009. It is the largest part of net export in USA.

Source from http://www.faa.gov/nextgen/slides/?slide=2

According to the graph below shows the total contribution to economy by air transportation in 1998. air transport take large parts in both of output and employment directly and indirectly.

The spin-off effect is one of the most important economic benefits in international trade. In the past decades, countries with fastest growth in international trading which is also have fastet economic growth. This illustrate the importance of aviation in development of economy.

  source from http://www.aapairlines.org/resource_centre/AAPA_SP_Herdman_ICAOAirTransportSymposium2012_Montreal_19Apr12.pdf

Supply chain of Boeing 787 Dreamliner

The Boeing company is an american multinational aerospace and defense corporation. Its headquarter was moved from Seattle to Chicago.

We might think, the Boeing company produce all the parts of planes and they should be produced in USA. However, the supply chain of Boeing plane is huge and complex.

   

Pic from  http://supplychainlogistics.wordpress.com/2011/07/23/product-design-and-supply-chain/

From the picture shows above, we can know there are up to 10 countries contribute to Boeing 787. This supply chain includes a typical issue in global business - global trading. Every country has its competitive advantages so that the Boeing company use their advantages to set up its supply chain.

                     Pic from  http://supplychainlogistics.wordpress.com/2011/07/23/product-design-and-supply-chain/

All the parts of Boeing 787 will be brought to Everett - Boeing's assembling factory. It is where Boeing 747s, 767s, 777s, and the new 787 Dreamliner are assembled.

The nightmare of Boeing 787

As more and more people choose airways as their first choice to travel to other countries or cities, the development of plane becomes more and more important. People concern more about the comfort and safety.

Boeing 787 is the latest model of Boeing company and it is the first plane that designed for human comfort. However, after 3 years delivery delayed, the plane still got some technical problems. Government and society concern about the safety of the plane as there were 7 accidents occurred in one week at the beginning of 2013. 

Here's the TV programme which include the discussion of the safety of Boeing 787 and some comparison between 787 and Airbus 380.  

lastest plane crashed in San Francisco

In 7 July, the Asiana airline which flied from Korea to San Francisco crashed when it was landing. This accident caused 2 people died and dozen of people hurt.

Safety of airlines being concerned again. The flight model of the accident in San Francisco is Boeing 777, which is the largest twin jets plane in the world.

Aviation accidents generates huge loss in society and business.

There is a table from Aircraft Crashed Record Office (ACRO) shows the number of deaths and accidents from 1999 to 2012:

The diagram above shows the number of accidents is fluctuated there is no illusion show the trend is coming down.

The lowest part of percentage of accidents and fatalities is during cruise which is up to 57%. Accidents and Fatalities of flight cause huge loss that not only in society but also in the business.