Analysis of Boeing and Airbus

ABSTRACT

Boeing, from the United States and Airbus, from the European countires are the two major aircraft manufacturing companies. In this paper, I will analyze political, social, ethical and legal differences and the two company’s impact on management decision making. I will explain how merging plays a major role in a companies output. Drug companies are trying to stymie generic competition. I will explain what types of legal barriers to market entry exist.

ANALYSIS OF BOEING AND AIRBUS

Boeing and Airbus are two industries that make aircraft. Boeing is in the United States, and Airbus in in France. Antitrust laws are different between the United States and Europe in how they interpret them. Boeing is the second largest large commercial jet company (behind Airbus) and the second defense contractor behind Lockheed Martin (Hoover’s Pro, 2012). The only reason Airbus is ahead of Boeing is that Boeing slacked in making a new wide body aircraft.

Boeing was founded by William E. Boeing and Naval Officer, Conrad Westervelt on July 15, 1916 under the name Pacific Aero Products Company (Hoover’s Pro, 2012), which was changed a year later to Boeing Airplane Company. The first plane they developed, the foundation for their company was a twin-float seaplane called the B&W (Boeing Company, nd), named after William and Conrad. The company’s first commercial aircraft used to fly mail for the U.S. Postal Service, came in 1927 with the model 40 (Boeing et al). WWII was a revolutionary period for aviation technology; aircraft productions surged and jet force technology was further advanced and refined.

Airbus began as a consortium of European aviation firms, with the explicit goal of competing with American companies. In 1969 at Le Bourget air show, when the French minister of transport and Jean Chamant sat down with the German minister of economics, Karl Chiller and talked of a new aircraft destinged to reshape the aviation industry (Hoover’s Pro, 2012).

Boeing has 1,230 employees in Chicago, Illinois and an additional 170,470 employees in the country (Hoover’s Pro, 2012). Boeing has provided 600,000 employments nationally and it is considered a big force in U.S. economy. Airbus has 5,709 employees in France and an additional 48,291 employees in the country (Hoover Pro, 2012). The European government does not allow their companies to go public with their information. The two politicians then signed an agreement to officially launch the A300, the world’s first twin-engine wide body passenger jet.

In 1934, the new antitrust laws had forced United Aircraft and transportation units to sell off part of their companies. This left Boeing worried about having to sell part of their business in order to stay