Competitors Analysis Airbus and Boeing are considered duopoly in a large jet airliner industry. Together, they hold over 60% of the market share with Airbus having 33% and Boeing having 30% of the market.

Fig. 1 Airline Industry Market Share

Both companies compete largely on the basis on technology, size, and weight of the aircrafts. Airbus A380 is an example of how Airbus competes in terms of size. A380 competes directly with Boeing 747, which is the largest aircraft of Boeing. In terms of the floor space, A380 has 49% more space than the 747, but 747 is 10% lighter; therefore, it reduces trip-cost by 21%. In these ways, Airbus and Boeing constantly compete to create better, bigger, and cost efficient aircraft.

Fig. 2 Size comparison A380 vs. 747 In the last decade, Airbus received 8,933 orders and delivered 4,824, while Boeing received 8,428 and delivered 4,458 orders. The comparison suggests that Airbus has a slight edge over the airline industry in terms of orders received and delivered. Airbus A380 has given the biggest competition to Boeing as more airlines are looking for bigger aircrafts to carry more passengers and cargo at once to reduce cost. Boeing is taking a technological route to compete with Airbus by introducing the new Dreamliner with advance technology and eco-friendly engine that significantly reduces cost. Airbus has weaknesses that give Boeing an advantage in the industry. One of the major weakness is that Airbus doesn’t have a defense segment, whereas Boeing is the second largest provider of military aircrafts and helicopters in the world. The most recognized symbol of American presidency is the Air Force One, and it is a Boeing 747. Their contract with various governments gives them a secure place in the defense market, as well as in the overall aircrafts market. In the commercial airline industry, Airbus has a slight lead,