Case Study Analysis of the Airbus A3XX Introduction of Boeing and Airbus In the United States, Boeing has been the leading civil aviation manufacturer for more than half a century. Using manufacturing and defense techniques, it soon became the world's leading manufacturer of commercial aircraft. Of their fleet of fourteen models (five families), their forerunner was the 747-400. When they first produced the 747 in 1965, their decision was criticized and called a gamble. Nonetheless, Boeing announced an initial order of 25 planes which, as a result, increased its stock prices by 5.1%. Despite a potential initial failure, Boeing's demand for the 747 aircraft continued to remain strong with 47 aircraft delivered in 1999 and 74 more in the portfolio. Competing with American airlines, such as Boeing and McDonnell Douglas, Airbus was founded in 1970. as an association with the “major aerospace companies of Germany (Deutsche Aerospace…), France (Aerospatiale Matra), England (British Hawker Siddeley, later BAE Systems) and Spain (Construcciones Aeronauticas, CASA)” (page 3). The company focused primarily on creating a highly competitive line of commercial airplanes. However, over time, the partnership between the four countries became unmanageable and three of them formed a new company known as the European Aeronautic Defense and Space Company (EADS). Airbus, a major division of this new company, had a fleet of nine models in 1999 and "employed 'fly-by-wire' technology that replaced computer control with mechanical links between the pilot and the aircraft's control surfaces " (page 3).The A3XXBoeing held a monopoly in the large aircraft (VLA) market with its 747 aircraft. Airbus has created a nice...... middle of paper ......gy to make it more powerful and attractive than the Airbus A3XX. Since this project may take some time, Boeing may have to work quickly to catch up to Airbus. Airbus' commitment Airbus' decision to commit to the project is a difficult one to make. On the one hand, it is possible that all early investors will receive discounts, thus causing Airbus to lose money. However, on the other hand, it is possible that Airbus would make even more money than it ever imagined by designing a plane that attracts passengers around the world thanks to the greater amount of space, detail and comfort provided in each model. Furthermore, since the VLA market is rapidly expanding, Airbus is able to enter this market quickly. If the company continues to create new aircraft and come up with effective strategies compared to others on the market, it could soon become a leader.