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Ready to Take Off (A): The Global Large Civil Aircraft Industry  
Product Ref: 08/395C Company: Airbus

Product Type: Case Industry: Capital Goods

Related Product(s): Teaching Note
Authors: Dean Xu   Isabella Chan
A capital-intensive industry that requires sophisticated high technology and enormous economies of scale, the global large civil aircraft industry allows only a few profitable players and has been dominated by the duopoly of The Boeing Company ("Boeing") and Airbus S.A.S. ("Airbus"). Although outsourcing has been evident since the 1970s, since the 1990s, Boeing and Airbus have become increasingly reliant on foreign suppliers, especially those in newly emerging markets, such as China. Industrial offset arrangements allow the two giants to contract their production processes, and increasingly the actual design and engineering work, to Chinese suppliers in exchange for guaranteed sales of the finished aircraft to Chinese airlines.

This case provides a brief introduction to the global large civil aircraft industry. It can be used to teach courses with a focus on economics, business management, production and operational management.
Functional Area : Production & Operations Management

Issues: Aircraft manufacturing, large civil aircraft, oligopoly, globalisation, outsourcing, newly emerging markets, industrial offsets, systems integration
Length: Text: 8 pages
Exhibits: 15 pages
Country: China (People's Rep. of)
United States of America

Pub. Year: 2008 Level of Difficulty: 2
This product type is available in the following language(s):      English
Related Information: N/A
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