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PRNASC Presentation Final

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Project Presentation

INTRODUCTION.
Boeing
Boeing’s long term strategic vision of 'People working
together as a global enterprise for aerospace
leadership'. It aims to be a leader in areas of quality,
profitability and growth where all employees are
encouraged to share their opinion to solve issues.
Boeing's leadership understanding is pivotal in
ensuring its success.
INTRODUCTION.
Airbus
Airbus' long term strategic vision is to create the best
and safest aircraft, following the principle to meet
airlines' needs by producing the most modern and
comprehensive aircraft family on the market with high
standards of product support. Airbus's leadership is to
share responsibilities and exchange ideas among all
levels of the company to get the best possible results.
Proposal outline.
• R&D in the near future
• R&D in the distant future
• Business strategies between Boeing and Airbus
• Aircraft Sales, Profitability & Forecast
• Competition With Other Transport Industries
R&D into the near future
R&D into the near future

What will happen to the aviation industry in


5,10 years?

How developed will aircrafts be at that time?


Flagship aircraft

Millions spent on R&D in new generation aircraft

Groundbreaking affair for Boeing and Airbus


•Made up of 50% composites

•Uses 20% less fuel than other aircraft

•Clever engineering features


-Made up of 53% composites

-Focused on efficiency, evolved from the A380

-Uses 25% less fuel


Conclusion

•Both aircraft are extraordinary.

•Airbus and Boeing are unlikely to create new


aircraft in the future however will constantly
improve on their flagship aircraft.

•Airbus wins over Boeing for this part on R&D with


better features that saves the earth, better fuel
efficiency and longer range.
Research and Development for
the distant future between
Boeing and Airbus
Research and Development for the
distant future between Boeing and
Airbus
What will happen to the aviation industry in the future
20 years or more from now?

How much will it have been developed?


Airbus
• Use 100% blend of bio fuel for commercial
aircraft.

• Idea of using fuel cell


Boeing

• Subsonic Ultra-Green Aircraft Research (SUGAR)

• Contract is signed between Boeing and NASA


Conclusion
• Boeing have concrete finding for future development

• Airbus only have the idea of being green

• Boeing is a step ahead than Airbus in the development


Business Strategies
Between Boeing and Airbus
Business Strategies Between Boeing and
Airbus

What is the manufacturer’s focus on?

What are their tactics to attract customers?


Boeing
• Focuses on direct international routes

• Developed the B787

• Redesigning the B747

• Customisation and efficiency


Airbus
• Hub and spoke concept

• Focuses on the A380

• Learnt from B787 mistakes

• Improved A350
Conclusion
• Airbus has a better business strategy as compared to
Boeing.

• Higher sales targets.

• Newer aircraft are better contenders as opposed to its


Boeing’s.

• Can capitalise on both major hub traffic and direct


international routes.
Aircraft Sales, Profitability &
Forecast
Aircraft Sales, Profitability & Forecast

Most commercial
aircrafts are
manufactured by both
Airbus and Boeing.

However... Who earns


more? And is it by a
large percentage?
Airbus
• In 2012,
• 914 gross orders
• 588 deliveries
• $1.59 billion net profit
• 19% increase
Boeing
• In 2012,
• 1339 gross orders
• 601 deliveries
• $3.9 billion net profit
• 3% decrease
Comparison
Airbus Boeing
• Fewer gross order & • Greater gross order &
delivery; delivery;
• Earned 2.5 times less • Earned 2.5 times more
net profit; net profit;
• Rise in profitability as • Fell in profitability as
compared to the previous compared to the previous
year; year;
Conclusion
• Boeing is taking the lead in the net profit earned
• Airbus has a rise in profitability while Boeing has fell
in profitability
• Overall Airbus is better than Boeing in term of sale
Competition with other transport
industries.
Competition with other transport
industries.
•Presently, air transportation
is a predominant industry.
•Hands down the fastest,
most efficient form of
transport.

•Safest form of transportation.


•Stringent rules and
regulations laid out by CAA
ensure its safety standards.
Competition with other transport industries.

Statistics from
http://www.boeing.com/boeing/commercial/safety/investigate.page?
Competition with other transport
industries.

Boeing
• Invents and implements new
technology to enhance the safety
standards of their aircraft.
• Invents the Enhanced Ground
Proximity Warning System, to
reduce chances of CFIT accidents
from occurring.
• Collaborates with global partners
such as NextGen and SESAR to
improve Air Traffic Management
by developing Future Air
Navigation Systems.
Pics from:
http
://www51.honeywell.com/aero/Products-Services/Avion
ics-Electronics/EGPWS-Home.html?c=21
www.faa.gov www.roger-wilco.net
Competition with other transport industries.

Airbus
• Improves its standards of safety to
remain competitive with other
transport industries and Boeing.

• Supports the NextGen ATM


system along with a partnership
between Airbus and SESAR to
ease air traffic.

• Focuses on building aircrafts


which are more environmentally
sustainable. (e.g A350 XWB)
Conclusion
• Verdict: Boeing is doing a better job of being competitive with
other transport industries than Airbus.

•Reasons:
•Boeing focuses on developing safety standards of the aviation
industry more than Airbus.

• Takes initiative to contribute to the research and development of


FANS with global partners.

•Airbus’s manufactures its aircrafts with focus on environmental


sustainability.

•Although environmental sustainability is important, safety is


always the top priority for the aviation industry.
Final Conclusion
Although Airbus is taking the lead in business and
R&D for the near future, Boeing has a stronger R&D
towards the far future including sales and profitability.

Overall, Boeing will win the competition as Boeing has


ensure the long term sustainability.

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