milica radic, igor popovic, jelena gojkovic, valerija ... vs...milica radic, igor popovic, jelena...

Milica Radic, Igor Popovic, Jelena Gojkovic, Valerija Popovic, Ivana Drezgic


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BOEING AIRBUS 1916 – William Boeing formed Boeing in Puet Sound, Washington 1927 – First ever passenger service plane Model 40A 1928 – Boeing renamed itself in United Aircraft and Transportation Corporation 1934 – Boeing split into three parts – the Boeing Airplane Company, United Airlines and United Aircraft 1947 – First jet airplane, B-47 bomber 1957 – First jet tanker and first Boeing passenger jet, 707 1962 – Launching Air Force One – Boeing 707 320B for the president 1968 – Launching 737 – low capacity short range plane – best selling passenger plane ever ( aproximately 5000 units ) 1969 – Launching of Apollo 11 equiped with Boeing overall systems integration 1970 – Making of 747 – high capacity long range plane 1996 – Boeing merged with Rockwell International Corporation aerospace and defense units – operating now as Boeing subsidiary 1997 – Boeing merged with its North American component, Mcdonell Douglas Corporation 2000 – Boeing purchased Highes Electronics Corporation’s space and communications business 2002 – Boeing merged the company’s space, defense, government, intelligence and communications into one business

1969 – Sud Aviation and Deutsche Airbus decide to launch Airbus A 380 1970 – Creation of Airbus Industrie 1971 – Casa joins Airbus Industrie 1978 – A 300 launched (short version of A 300) 1979 – British Aerospace becomes fourth Airbus partner 1984 – Launch of A 320 1987 – A 330/A 340 programme launched 1989 – A 321 launched (extended A 320) 1993 – A 319 launched ( short A 320) 1999 – Launch of A 318, smallest Airbus plane 1999 – Plans for EADS merger announced 2000 – Commercial launch of A 3XX 2000 – Airbus consortium to become a corporation 2005 – A 380 to go into service


Leadership, Integrity quality, Customer satisfaction, People working together A diverse and involved team, Good corporate citizenship, Enhancing shareholder value

Detailed customer knowledge and focus Large-scale system integration

Lean enterprise

Run healthy core businesses. Leverage strengths into new products and services.

Open new frontiers

To value and leverage multiple perspectives, experiences and capabilities by driving the integration of diversity, equity and fairness principles into all practices and processes to achieve enterprise

objectives

People working together as a global enterprise for aerospace leadership.

MISSION

VISION

STRATEGY

VALUES

BOEING COMPETITIVE FACT SHEET


More comfortable, more efficient aircraft that meet passengers’ expectations and airlines’ business requirements.

New ideas, new techniques and new materials

Thinking ahead and listening – to customers, passengers and employees

Improve our customer's lives and our community through passenger transportation services.

Make it convenient, enjoyable and beneficial for all who use our services. To exceed our customers expectations and

enable them to achieve their travel and transportation goals.

MISSION

VISION

STRATEGY

OUTPUT

AIRBUS COMPETITIVE FACT SHEET


2004 FACT SHEET

BOEING AIRBUS 2004 Revenue $50485,00 mil $ 24225,40 mil Revenue growth (1Yr) -6,60% 19,10% Employees (2004) 157 000 52 000 Employee Growth (1 yr) -5,40% 8,70% Aircraft deliveries 285 320 Number of aircraft models 11 12

2004 Revenue

0

10000

20000

30000

40000

50000

60000

BOEING AIRBUS

Million $ Revenue growth (1Yr) 2004

-10,00%

-5,00%

0,00%

5,00%

10,00%

15,00%

20,00%

25,00%

BOEING AIRBUS


THE CIVIL AIRCRAFT INDUSTRY MARKETS

Commercial aircraft

Maintenance, repair and overhaul (MRO)

Jet engines

Key systems Aviation electronics and electrical

systems

AIRBUS

BOEING

BOMBARDIER

EMBRAER

GENERAL ELECTRIC

PRATT & WHITNEY

ROLLS-ROYS

SNECMA

TEXTRON

GULFSTREAM AIR

Less than 100 seats

More than 100 seats


BOEING BUSINESS UNITS


BOEING GROWTH AND DIVERSIFICATION 1994 Revenue $22 Billion

CA73%

IDS, CC, C27%

2003 Revenue $50 Billion

IDS, CC, C55%

CA45%

2004 Revenue $52,5 Billion

IDS, CC, C60%

CA40%

CA – Commercial Airplanes IDS – Integrated Defense Systems CC – Boeing Capital Corporation C - Connexion by Boeing


Based in Toulouse, France, Airbus is an EADS joint Company with BAE SYSTEMS, incorporated under French law as a simplified joint stock company or “S.A.S.” (Société par Actions Simplifiée). Airbus’

design and production sites are grouped into four wholly-owned subsidiaries, Airbus France, Airbus Deutschland, Airbus España and Airbus UK.


AIRBUS COMMERCIAL AIRPLANES

AIRBUS ACTIVITIES

ENGINEERING MANUFACTURING

Customer Support

Engineering & Technical Support

Technical Data Support & Services

Spares support and

services

Training

Flight Operations

Support & Line Assistance

Business Operations

AIRBUS SERVICES


AIRBUS WORLD PRESENCE

Toulouse, France Toulouse, France

Hamburg, Germany Frankfurt, Germany Hamburg, Germany

AIRBUS North America Miami, Florida

Washington

AIRBUS China AIRBUS Japan

Beijing Beijing

Singapore

Training Centres Subsidiaries Spare Parts Centres

AIRBUS International Operations

130 FIELD SERVICE OFFICES AROUND THE WORLD

EUROPEAN OPERATIONS France: Toulouse, St. Nazaire, Nantes, Me-aulte Germany: Hamburg, Bremen, Stade, Nordenham, Varel, Lauphheim, Buxtehude Spain: Getafe, Illeskas, Puerto Real UK: Filton, Broughton


BOEING WORLD PRESENCE

USA: Everett, Wa Tulsa, Ok Hawthorne, Ca El Segundo, Ca Wichita, Ks Renton, Wa

Boeing Factories Boeing Training Centres Commercial Airplane Subsidiares

Boeing Canada Winnepeg

Boeing Canada

Boeing Australia Limited

Europe: Manchester London Palma de Mallorca

Asia: Kunming Korea

Australia: Brisbane Africa:

Johannesburg

Latin America: Rio de Janeiro Mexico City Buenos Aires

North America: Atlanta Miami St. Louis Denver Long Beach Salt Lake City Louisville Seattle Atlanta Seattle New York

El Segundo, California


COMPETITIVE POSITIONING


BOEING VS. AIRBUS PRODUCTS


BCG MATRIX


AIRBUS BOEING

Model type No. seats Range in km Model type No. seats Range in km A 300 266 7.700 km 177 5.084 km A 300 F freighter 4.800 km

737-900 189 5.084 km

A310 220 9.600 km 162 5.425 km A318 100 6.000 km

737-800 189 5.425 km

A 319 124 6.800 km 416 13.450 km A 320 150 5.500 km

747-400 524 13.450 km

A 321 185-220 5.550 km 416 14.205 km A 330-200 253 12.500 km

747-400 ER 524 14.205 km

A 330-300 295 10.500 km 243 6.287 km A340-200 261 14.800 km

757-300 280 6.287 km

A340-300 295 13.700 km 200 7.222 km A 340-500 313 16.700 km

757-200 228 7.222 km

A 340-600 380 14.700 km 245 10.454 km A 380 A 380 F

555 3 decks

14.800 km 10.400 km 304 10.454 km 767-400 ER

375 10.454 km 368 11.029 km 451 11.029 km 777-300 555 11.029 km

787-3 296 6.500 km 787-8 223 15.700 km

___ 100 – 200 seats competitor ___ 200 – 280 seats competitor ___ 280 – 375 seats competitor ___ 375 – 520 seats competitor ___ 520 – XXX seats competitor

Not yet operating 787-9 259 15.400 km


AIRCRAFT DELIVERIES

0

100

200

300

400

500

600

700

Year

BOEING DELIVERIES 620 489 527 380 281 285 320

AIRBUS DELIVERIES 294 311 325 303 305 320 355

1999 2000 2001 2002 2003 2004 2005


AIRBUS vs. BOEING MARKET SHARE

AIRBUS; 57% BOEING; 43%

Source: AIRBUS Annual Review 2004


INNOVATIONS

707 – World’s first commercial jet (set the pattern for all commercial jets) 727 – First commercial jet with completely powered flight controls, high-lift systems and auxiliary power unit 737 – World’s best selling commercial jet (more than 5500 orders) 747 – First jumbo jet 747-400 – First with flight crew rest area, sitcom capability, two-crew, wide body commercial jet with 4 engines 757/767 – Pioneer in concept of cooperative certification from “glass cockpit” 717 – First to receive concurrent and cooperative certification from FAA and JAA

B O E I N G 777 – First completely digitally designed and pre-manufactured, first ETOPS certified

before delivery

A300 – First twin-engine, twin-aisle commercial jet, equipped with CAT IIIA auto land A300FFOC – First twin-aisle jet to be piloted by two-man crew A310 – Introduction of composite materials in secondary structures A310 - 300 – First to feature drag – reducing wingtip devices, introduction of composite materials in primary structures A320 – First “fly-by-wire” service and side stick controller A300 - 600 – World’s most voluminous cargo hold

A I R B U S

A380 – First 4-aisle, twin-deck jet


MAIN COMPETITIVE PRODUCT ORDERS

BOEING 787 DREAMLINER AIRBUS A380

AIRLINE No. of aircraft Aircraft type AIRLINE No. of

aircraft Aircraft type

ANA - All Nippon Airways 30 20

787-300 787-800 Emirates 41

2 A380-861

A380F Japan Airlines 30 787-300/800 Lufthansa 15 A380 Primaris Airlines 20 787-800 Quantas 12 A380-841 Air China 15 787-800 Air France 10 A380-861 China Eastern 15 787-800 Federal Express 10 A380-800F China Southern Airlines 13 787-800 Singapore Airlines 10 A380-841 Continental Airlines 10 787-800 UPS 10 A380-800F Hainan Airlines 8 787-800 ILFC 5 A380 First Choice (uk) 6 787-800 Finance Corp. 5 A380F Shanghai Airlines 6 787-800 Korean Air 8 A380 Blue Panorama 4 787-800 Malaysia 6 A380-861 Vietnam Airlines 4 787-800 Virgin Atlantic 6 A380 Xiamen Airlines 3 787-800 Thai Airways 6 A380 Air New Zeland 2 787-800 Etihad Airways 4 A380-840 Icelandair 2 787-800 Qatar Airways 2 A380

TOTAL 188

TOTAL 152


BOEING SUPPLIERS OF THE YEAR

AVIONICS CATEGORY

ELECTRONIC, HYDRAULIC AND

MECHANICAL SYSTEMS CATEGORY

MAJOR STRUCTURES

CATEGORY

PURCHASED OUTSIDE

PRODUCTION CATEGORY

PROPULSION CATEGORY

Harris Corporation Department of Defense Programs

Kidde Technologies Inc. Wilson, North Carolina

Stork Fokker AESP

J. D. Ott Company, Inc. Seattle, Washington

Pratt & Whitney Commercial Engines East Hartford, Connecticut

COMMON AEROSPACE

COMMODITIES CATEGORY

INTERIORS CATEGORY

AEROSPACE SUPPORT

CATEGORY

NON-PRODUCTION CATEGORY

SMALL BUSINESS CATEGORY

TECHNOLOGY ADVANCEMENT

CATEGORY

Radiall Rosny Sous Bois, France

Drager Aerospace and Carleton Technologies Orchard Park, New York

ST Aviation Services Company Pte Ltd (SASCO) Singapore

Dell, Inc. Round Rock, Texas

Helicomb International, Inc. Tulsa, Oklahoma Creative Management Technology, Inc. Cocoa Beach, Florida Patriot Machine, Inc. St. Charles, Missouri

Waveflows LLC Glenview, Illinois


BOEING MAJOR CIVIL AIRCRAFT SUPPLIERS

Landing gear Goodrich, Menasco, Dunlop, Messier Bugatti, Haneywell, Fuji, Cleveland Pneumatic,

Wings stabilizers Short, CASA, Hawker de Haviland, Alenia, Vought Aircraft

Fuselage Kawasaki, Mitsubishi, Fuji, Northrop Grumman, Short Brothers, Kaman, Singapore Aerospace Industry, ASTA, Canadair

Others Northrop Grumman, IAI, Schweizer, Honeywell Air Conditioning

Aircraft interiors BE Aerospace In-flight entertainment Airlines Choice Surfaces Alooa – Boeing Avionics Honoywell, Rockwell, Collins,

Engines BMW Rolls Royce, CFM International, Pratt&Whitney, GE, Rohr Industries,

Hydraulic Honeywell

Electrical Systems Allied Signal, Hamilton Standard, Sunstrand, Honeywell APU, Moog,


AIRBUS MAIN SUPPLIERS

AEROSTRUCTURE MATERIALS EQUIPMENT

SYSTEMS PROPULSION

SYSTEMS

ENTERPRISE CONSUMABLES AND SERVICES PROCUREMENT

PRODUCT RELATED SERVICES

PROCUREMENT

IT & TELECOM CAPITAL

EQUIPMENT & FACILITIES

Alenia, BAE SYSTEMS, Belairbus, Boeing Hawker de Havilland, Bombardier, EADS Military Aircraft, Elbe Flugzeugwerke, Eurocopter, Fairchild Dornier, Fokker, GKN, Labinal, Latecoere, PFW, Ratier-Figeac, SAAB, Sabca, Socata, Sogerma, The Aerostructures Corporation

Alcoa, Corus, Fairchild, FORTECH (Eramet group), GFI Group (Blanc Aero), Hexel, Otto Fuchs, Pechiney, Sarma, VSMPO

B/E Aerospace, Cobham, Collins, Diehl, Driessen, Eaton, Goodrich, Honeywell, Jamco, Liebherr, Matushiba Corp

General Electric Company, Goodrich, Pratt-Whitney, SNECMA, Rolls Royce, Northrop-Grumman, Parker, Pratt & Whitney, Canada, Recaro, Sagem, Smiths, Snecma SA, Thales, Hamilton –Sundstrand, Zodiac, Engine Alliance (GE & P&W), IAE (PW & RR), CFMI (GE & SNECMA)

Adecco, Adia, Courriers de la Garonne, Cromwell Tools Ltd, Daher, Danzas, Debis, Emery, Euro RSCG, Guilbert, Havas, Isor, KPMG, Price Waterhouse, Securitas, Sodexho, Sud Espace

Aerotec, Askon, ASSYSTEM, DGA/DCE/CEAT, Clairis Technologie, Comecad (Group Labinal), Engage (Group GKN), Etude Documentation Impression, Ferchau, Inbis, Latecoere, Mayflower Technical Services, ONERA, Penauille Polyservices, Piper, Rücker AG, Sonovision, Studec-Seta, STN Atlas, Teuchos (Group Labinal), TGA, Transiciel

IT, Compaq, Dell, Hewlett Packard SUN, IBM, Microsoft, NEC, Oracle, Toshiba, T-Systems, Telecom/Network, CISCO, CSC, France Telecom, MATRA NORTEL, SITA, SAP, SUN

Atlas Copco, Broetje, Cooper Tools, DS Technologie, Electro Impact, Forest Liné, Hyde Group, Henri Liné, Makino, M Torres, Scholz, Starrag-Heckert Technology AG


MAIN BOEING AND AIRBUS COMMON SUPPLIERS

General Electric Pratt & Whitney B/E Aerospace

Rolls Royce Dell

Honeywell Collins

Hamilton – Sundstrand Hawker de Havilland


PERFORMANCE RATING

AIRBUS BOEING

EXTREME OUTPERFORMER

OUTPERFORMER

MARKET PERFORMER

UNDERPERFORMER

EXTREME UNDERPERFORMER

Short term Mid term Long term Short term Mid term Long term


TOP TEN END-USER NATIONS

PASSENGER AIRCRAFT DELIVERED BY $ VALUE (2004 $ BILLION) 1 United States 5,210 United States 412.7 2 People’s Republic of China 1,790 People’s Republic of China 241.7 3 United Kingdom 1,150 United Kingdom 119.2 4 Germany 989 Japan 106.4 5 Japan 640 Germany 96.6 6 Italy 543 France 57.5 7 France 482 Republic of Korea 52.5 8 Spain 446 Italy 52.1 9 Canada 434 Spain 47.5

10 Malaysia 380 Singapore 44.4


17,328 New passenger

and freighter deliveries over the 2004-2023

period

Passenger Fleet

Freighter Fleet

16,601 727

3,268 1,029

Recycled 3,520

Delivered

17,328

Converted 2,412

Retired 4,297


North America

2004-2013 2014-2023 % of world deliveries

3,048 2,596 28%

Europe


3,290 3,113 32%

Latin America


810 413 6% Africa


411 230 3%

Middle East


396 299 4%

Asia – Pacific


2,928 2,587 27%

World-wide demand will be more even between major regions


DEMAND FOR AIR TRAVEL


BOEING vs. AIRBUS

BOEING AIRBUS It will deliver about 285 jets this year It will deliver about 315 jets this year Boeing 787 carrying about 250 passengers A 380 potential seating of 555

Profit from standard models and develop military aircrafts & satellite program

Invest in development of new passenger aircraft

Airbus A380 floor area has 49% more floor space than Boeing 747-400 Airbus has 20% less of operational costs than Boeing

It has longer tradition until 1995 had the monopoly on aircraft market

Airbus holds now some 57% of the world market for passenger aircraft

Pilot of Boeing 737 needs 3-5 months of additional training in order to drive A380

Pilot of airbus needs 5 weeks of additional training in order to drive A380


FUTURE PRODUCT FOCUS

B787 DREAMLINER A380

MODEL 787-3 – 2 class configuration 787-8 – 3 class configuration 787-4 – 3 class configuration

A380-200 A380-100 A380-50R

TYPE Single-deck, long range Twin-deck, four-aisle, wide body, long range

RANGE 787-3 - 3500nm 787-4 - 8500nm 787-5 - 8300nm

A380-200 - 7650nm A380-100 - 8150nm

PASSENGER NUMBER 787-3 - 289 passengers 787-4 - 271 passengers 787-5 - 257 passengers

A380-200 - 656 passengers A380-100 - 555 passengers A380-50R - 480 passengers

ENGINES 2 engines – GE / Rolls Royce 4 engines – Pratt / GE, Rolls Royce MATERIAL Plastic composite and very little aluminum Mixture of aluminum and epoxy-fiberglass CARGO VOLUME 5 pallets or 5 LD3s 13 pallets or 38 LD3 containers FIRST FLIGHT FIRST DELIVERY

2007 2008

2005 2006

FUEL SAVINGS 20% more fuel efficient (than similar sized plane) 13% lower fuel burn than closest competitor

MAINTENANCE 30% maintenance benefit because of its plastic composite and only 2 engines 4 engines – higher maintenance

CREW TRAINING No need for additional crew training Minimal additional training AIRPORT CAPABILITY Similar in this aspect to its previous models Designed in collaboration with 60 major airports ETOPS Satisfy ETOPS standards Exceeding the standards for ETOPS

PASSENGER COMFORT

�� quieter, wider aisles �� 30% larger windows(than comparable

model)

�� significant reduction of noise and emission levels

�� 49% more floor area PRICE $120 million (list price) $280 million (list price)


BOEING SWOT ANALYSIS

S T R E N G H T S

�� Experience �� Only company in world with 4 front-

line fighters in current production �� New plane (speed of sound) �� Reduction of gasses and noise �� Good education system and social

program �� Taking care of environment and

society

? Big planes ? Canceling 747x and sonic cruiser

programs (bad picture of company) ? Not taking serious AIRBUS from the

beginning ? Increase in speed is not necessary

reduction in travel time

W E A K N E S S E S

O P P O R T U N I T I E S

�� Help from the USA government �� Supplier diversity �� New technological breakthroughs in

computers and electronics during this time frame

�� Growth in secondary routes

? A380 ? New entries (Japanese are working

for years on supersonic passenger plane)

? Substitutes such as teleconferencing and high speed trains

? Total passenger traffic will double – need for bigger planes

T H R E A T S

FUTURE RISKS!!! Big planes, new entries, new technologies, depreciation of Airbus, and their management who is not open for new revolutionary technologies


AIRBUS SWOT ANALYSIS

S T R E N G H T S

�� A380 introduction �� New technologies and materials �� Growing sale �� Cross Crew Qualification �� Mixed Fleet Flying

? Relatively new company ? Smaller scope of activities than

Boeing ? They invest almost everything

in A 380

W E A K N E S S E S

O P P O R T U N I T I E S

�� Passenger traffic is doubling, there is a need for bigger planes

�� Expanding to Japan (new subsidiary)

�� Strong connection with EU aircraft industry

�� Supplier diversity

? Firm orders but not enough ? Pilots need additional training ? Airports need adjustments for

A380 ? New entries

T H R E A T S

FUTURE RISKS!!! Is there going to be enough orders to cover expenses?, Will airports adapt for A380?, What is Boeing new step?, Will there be new entries?, How people would react to new big airplane?


INFORMATION SOURCES

www.airbus.com www.boeing.com www.avionics.com www.thetravelinsider.info www.finance.yahoo.com Boeing Frontiers Online

milica radic, igor popovic, jelena gojkovic, valerija ... vs...milica radic, igor popovic, jelena...

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