assembling aircrafts with the help of the world !

8/14/2019 Assembling Aircrafts With the Help of the World !

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Assembling Aircrafts with the helpof the world !


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Airbus (Europe) and Boeing (America)Transferred technical know how to Asia becausethey were losing out the expertise to build theNext Gen aircrafts.

Stiff Competition between Boeings 787Dreamliner and Airbus A350.

Contributed to the Battle of Racism andCorporate war between USA and Europe the timeof sharply rising concerns for globalization.


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Founded in 1916, now headquartered at Chicago, Illinois

(US), it now has 1,53,000 associates world over.Largest civil aircraft manufacturer @ $54.8 b revenuein 2005 and second largest defense contractor in worldafter Lockheed Martin.1916-1930 was a period of mergers and acquisitions

(Boeing Air Transport +Pacific Air Transport +BoeingAirplane co.+ Pratt and Whitney + Hamilton std. +Chance Vought)Launched largest commercial aircraft (Boeings first),Boeing 314 Clipper in 1938. First pressurized cabin

installed in 307 Stratoliner to cruise at 20000 feet in1938 as well.1950- the era of new technology, Launched B707, itsUSAs first commercial jet airliner against BritishsComet and Soviets TU-104 The Camel. B707 was 4

engined,156 passenger craft.


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1960- Boeing acquired Piasecki Helicopter.1970s- dropped from Apollo project and congress

stopped aide to help develop Supersonic 2707 to banghead against CONCORDE.Faced competetion from AIRBUS EUROPE in the 80 anddeveloped 747,767 and 777 (300 Passenger Capacity)1997-merger with McDonnel Douglas. Since 2000, stiff competetion from AIRBUSB787 slated for launch in 2008, made of compositematerial, fuel efficient, could carry upto 350passengers.Proposed two aircrafts, 747X with better fuel efficiencyand Sonic cruiser. 747X had apathetic response, butsonic cruiser had better prospect. Cos. wanted less timeconsuming aircrafts to attract customers and utilizeaircrafts.September 11,2001 tragedy witnessed fall in aviation

industry. Sonics proponents declined due to increasedfuel cost and the decline in industr .


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Major Players: In Large Aircraft(>100seat)Boeing(US)55%,Airbus(Europe)21%. In Sub 100 seat capacity:Embraer (Brazil) & Bombardier (Canada)combined 24%Major Customers: National carriers for longhaul, low cost airlines for short haulBoeing and Airbus projected growth of 4.5%during 2005-10Boeing favoured devp of Larger AircraftAirbus favoured devp of Smaller AircraftDuring 90s Airbus invested 663m Pounds inR&D.Analysts predicted that by 2010, market share:Airbus21%-31%,Boeing55%-51%


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Primary Markets: US, Europe, Asia, LatinAmerica.Boeing Largest market share in Asia 71% setto increase by 1.3%

Airbus market share in other regions set toincrease by 4.9%


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OutsourcingIn 1982, Boeing outsourced its 15%manufacturing process to Japan to develop itsBoeing767which increased to 20% in 1995 todevelop Boeing777.In 2006, Boeing outsourced more than 35% forthe manufacturing of Boeing787and Dreamliner.In March 2006, Airbus setup A320 productionline in China-first ever production facility

outside Europe.


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USs close relationship with Japan gave Boeing96% market share in commercial aircraft marketin Japan.

Japanese Govt. provided subsidies like $1.6 Bnto Mitsubishi, Kawasaki and Fuji to Fund work onBoeing787.Airbuss Manufacturing Unit in China intended

to prevent Boeing to take control over there asIn 2006 China had placed US $10 Billion forAirbusA320s.


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Many Japanese aerospace manufacturingcompanies got contracts from Boeing787tomanufacture wings, due to this Boeing becomes

global leader in manufacturing Aircrafts.

Airbus was outsourcing its assembly work toChina which was less sophisticated and required

less technical know how and this plant could startrolling out A320planes by 2008.


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Product line - AirbusAircraftModel

Description Seats

A300 Twin Engine, Twin aisle 250-375

A310 Twin Engine , Twin aislemodified A300

200-280

A318 Twin Engine, Single aisle 136







A380 4 Engine, Double deck

and Spacious aisles.

555

Launch Date

May, 1969

July, 1978

April, 1999

June, 1993

March, 1984

Nov, 1989

June, 1987

June, 1987

Oct, 2005

Expected 2010


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Market Shares (2006)Market Market Share

Boeing Airbus Others

USA 65.8% 20.5% 13.7%

Europe 35.2% 51.2% 13.7%

Asia 47.3% 29.8% 22.8%


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Net Aircraft Orders: Airbus-Boeing

assembling aircrafts with the help of the world !

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