Boeing Vs Airbus: The Continued Battle for Market Share

Boeing vs Airbus: The Continued Battle for Market Share

The clash between aerospace titans Boeing Co. and Airbus is set to heat up later this week when the World Trade Organization issues an interim ruling on whether the European jet maker (Airbus) received subsidies that violated trade rules and gave it a financial edge over its American rival (Boeing). The ruling is separate from a countersuit lodged by the Europeans that claims Chicago-based Boeing received unfair subsides from the states of Washington and Illinois. That lawsuit is running about six to nine months behind the U.S. one. Both lawsuits are prime examples of the ongoing battle by the two companies to capture the lucrative jetliner market share. On the surface, the WTO will decide a 5-year-old U.S. complaint that European governments unfairly financed Airbus' climb to the No. 1 position. But the ruling may also signal how much other nations should be allowed to subsidize their industries. China's aviation industry, for example, wants to compete with Boeing and Airbus for a share of the jetliner market, expected to be worth $3.2 trillion over the next 20 years.

Boeing's website claims that it is the world's leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined. Boeing designs and manufactures rotorcraft, electronic and defense systems, missiles, satellites, launch vehicles and advanced information and communication systems. As a major service provider to NASA, Boeing operates the Space Shuttle and International Space Station. The company also provides numerous military and commercial airline support services. The website states that Boeing has a long tradition of aerospace leadership and innovation and offers a broad range of capabilities including creating new, more efficient members of its commercial airplane family; integrating military platforms, defense systems and the warfighter through network-centric operations; creating advanced technology solutions that reach across business units; e-enabling airplanes and providing connectivity on moving platforms; and arranging financing solutions for its customers. Boeing's 20 year market forecasts include the following for new growth:

Airbus's website claims that it is one of the world's leading manufacturers of commercial jetliners and military airlifters, having evolved during the past 40 years on the vision, innovation and passion of its employees. The site also claims that over the past 40 years, Airbus has played a key role in the international air transport industry's evolution. Achievements such as improving manufacturing techniques, developing global cooperation, and reducing aviation's environmental impact result from Airbus' ability to understand market and passenger expectations, and answer them