The Boeing and Airbus Companies are the world’s largest manufacturers of commercial and military jetliners. The companies date back to 1916 and 1969 respectively. Boeing being in operation for a long time had experienced a long period of monopoly in the manufacture of large commercial jetliners.
The companies in their attempts to outdo each other used different strategies of flight with Boeing adopting a point-to-point strategy while Airbus adopted a hub-to-hub strategy.
The Boeing Company was founded by William Boeing in 1916 in Seattle, Washington. It is an American Multinational aerospace dealing with the manufacture of commercial jetliners as well as military aircraft. The company has a market for its products and support services in 150 countries all over the world.
On the other hand, Airbus founded on May 29, 1969, by Jean Chamant and Karl Schiller deals with the manufacture of military airlifters and commercial jetliners. The company has its headquarters in Toulouse France and other places in Germany, Netherlands, and United Kingdom. The company has sixteen sites in four European countries.
Boeing airline’s vision is “people working together as a global enterprise for aerospace leadership” while that of Airbus is the production of aerospace that are eco-efficient and environmentally friendly. The difference in the visions makes the two companies have disparities in their operation.
In the analysis of the strategies used by the two companies, Boeing point-to-point flight refers to means of flight where travellers do not change their planes during their travels. In addition, the point-to-point flight may refer to a nonstop flight from the place of origin to the destination.
The connection of secondary towns by Boeing means that the passengers would take flights from their point of origin to their point of destination non-stop or else without a change of planes.
Whereas, the hub-to-hub strategy used by Airbus Company involves the change of planes or routes to take the passengers to their destination. The strategy is usually applicable in airports that do not have direct route connectivity. The passengers may change the plane or even the route to their destination.
The two strategies are very different as the point-to-point strategy creates a direct connection between the place of origin and the destination while the hub-to-hub uses airline hubs in connecting the place of origin, and the passenger intended destination.
Point-to-point flight strategy allows connections to multiple destinations. This ensures that passengers travelling from one destination to the other use less time as they do not have to use a hub to connect to their destination. The strategy saves time as compared to the hub-to-hub strategy. The strategy is also cost-effective as it reduces the cost of flight expenses due to reduced distances.
The direct connection between the cities shortens the distance travelled. This makes the costs incurred in fuelling and other flight expenses reduce and that consequently reduces the flight charges. The other advantage of the strategy is that it is reliable and efficient to the passengers as it assures them of reaching their destination without a change of planes or travel companies.
The strategy also offers the passengers comfort during their travel. The shortening of the travel distances reduces the time spent on the flight which consequently reduces tiredness, which makes the passengers comfortable during their travel.
The point-to-point strategy also helps in reducing congestion in the airports that act as airline hubs through the provision of opportunities by the strategy to bypass the hubs.
This further makes the airline hubs run effectively. Point-to-point services also give the passengers convenient schedule choices as they do not depend on the times allocated for the plane connection as in the hub-to-hub strategy.
On the other hand, the method has a drawback in that it is less efficient, especially between routes with few passengers. This causes most airlines to find it difficult in their application. Further, this causes the strategy to be only applicable to small and medium-sized airplanes.
Hub-to-hub strategy has its pros where the method is efficient for routes with few passengers. The airlines can connect and interchange the passengers, which makes the airlines use this strategy to have enough passengers for their trips. The method is thus applicable to large airplanes. This ensures that airlines reduce the cost of flight expenses thus becoming more economical.
However, the strategy has cons in that it is time-consuming. The use of hubs makes the distance travelled by the planes longer as they have to stop at different destinations. In addition, the change of planes and routes also consumes a lot of time thus making the strategy inefficient. The strategy is tiresome due to long-hour travels that make it unreliable.
The strategy is also expensive as the costs incurred by the plane such as fuels cost are huge and affect the flight charges. The strategy is also unreliable as the use of airline hubs may cause delays in case of an emergency or climatic changes at the hub point. This makes the passengers change their arrival times or even days depending on the impact of the effects.
The use of these two models led to stiff competition in the air market with Boeing concentrating on both minor and major airports while Airbus only concentrated on major airports.
The difference in airports and route concentration made Boeing a competitive advantage over its competitor as its plane model could be accommodated in many airports. The two companies also produced fuel-efficient airplanes which made both companies more competitive.
Currently, Airbus holds half of the aerospace market due to its improvement in products that are both environmental and economically friendly to the users. Similarly, in its operation in the airline industry, the company has adopted a two-way strategy to ensure they take the full competitive advantage.
The company applies both the point-to-point and hub-to-hub strategies that were made possible due to the introduction of the Airbus A380 and A350. The company uses A380 for hub-to-hub strategy and Airbus A350 for point-to-point strategy. This has helped the company to dominate the market which led to its tremendous market growth.
On the other hand, Boeing holds one-third of the total aerospace market. The company’s use of one strategy has given Airbus Company the advantage to penetrate most of the markets.
Competition between the two companies helps in the advancement of the aerospace and airline industry. The companies should focus on challenging each other in the manufacturing as well as in the airline industry but ensure that they do not expose each other to risks.
The two companies being the main competitors should not view each other as a threat but should work together through innovative programs and technology advancement research that would help them to experience more growth in their field.
This will consequently ensure that the customers have quality products as well as ensure that the company’s competition is healthy. The companies should also focus on making their training programs more extensive for the airline industry to help in the improvement of services and efficiency.