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Additional cases - McGraw Hill Higher Education
Additional cases - McGraw Hill Higher Education

1

Competition between Airbus and Boeing



The competition between Airbus and Boeing has been characterised as a duopoly in the large jet airliner market since the 1990s. This resulted from a series of mergers within the global aerospace industry, with Airbus beginning as a European consortium while the American Boeing absorbed its former arch-rival, McDonnell Douglas in a 1997 merger. Other manufacturers, such as Lockheed Martin, Convair and Fairchild Aircraft in the United States and British Aerospace and Fokker in Europe, were no longer in a position to compete effectively and withdrew from this market.In the 10 years from 2004 to 2013, Airbus has received 8,933 orders while delivering 4,824, and Boeing has received 8,428 orders while delivering 4,458. Competition is intense; each company regularly accuses the other of receiving unfair state aid from their respective governments. Recently the WTO found that some support to Boeing was unfair.
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