Академический Документы
Профессиональный Документы
Культура Документы
Students Mr Ranjeet Desai, Mr Rajendra Sing Rao, Mr Neeraj Gautam, Mr RD16719 &
Name: Ritesh Tiwari, Mr Mukilan Nakkeeran Student Number: Team
ECO701-
Assignment Number: 1909-1 Title: Grp_ ALP_ Boeing Versus Airbus Market Outlook 2019-38
Professor’s Name:
Due Date: 11.11.2019 Subject Code and Name: ECO701 - Data Analysis for Managers
I affirm that the attached work is entirely my own except where the words or ideas of other writers are specifically
acknowledged through the use of inverted commas and in-text references. This assignment has not been submitted for
any other subject at GlobalNxt University or any other institution. I have revised, edited, and proofread this paper.
(To input your electronic signature, double-click on this box and select ‘checked’) Word count: 2137
Grade
Assessment Criteria Comments
S/U*
1 Critical thinking - analysed, critically, the
issues using appropriate concepts and
methods.
Note to students: Please ensure that your filenames do not contain Reserved characters such as
/?:@=& ; or unsafe characters like “< >"#%[]{}|\^ ~ ''( ) as the presence of these characters might
prevent your assignments from being downloaded successfully by your professor.
Boeing Versus Airbus Market Outlook 2019-38
To preserve the formatting of this cover sheet, be careful not to remove the ‘Section Break’. This is
viewable by selecting the ‘Normal’ option in the ‘View’ menu.
Project by Team 6:
ABSTRACT: This document is a response to the questions asked as a part of the Action Learning
Project where the team is required to express the view over assigned reports.
Page 1 of 10
Brief About Airbus:
It is a European multinational aerospace corporation that stood as the world's second biggest
aerospace and defense company in 2018, behind only their primary competitor, Boeing. The
company has three divisions: Commercial Aircraft, Defense and Space, and Helicopters, the third
being the largest in its industry in terms of revenues and turbine helicopter deliveries. 74%
Boeing is the world's largest aerospace company and leading manufacturer of commercial
jetliners, defense, space and security systems, and service provider of aftermarket support.
Boeing has a long tradition of aerospace leadership and innovation. The company continues to
expand its product line and services to meet emerging customer needs. Boeing is organized into
three business units: Commercial Airplanes; Defense, Space & Security; and Boeing Global
Boeing has been the premier manufacturer of commercial jetliners for decades. Today, the
company manufactures the 737, 747, 767, 777 and 787 families of airplanes and the Boeing
Page 2 of 10
Q1) Compare specific data analyses on similar data in the two reports that contradict each other/
Ans:
1. New Deliveries
Airbus confirmed long term growth potential for industry demand for 39,210 new passenger
aircraft and freight aircraft over the next 20 years, whereas Boeing confirmed potential of increase
in demand by 44040 aircrafts with 19210 replacements which is 44% of deliveries and 24830 are
growth which 56% of deliveries.
2. Total Fleet
Airbus planned the Passenger & Freighter fleet to 47684 of Airbus GMF19 & 47990 of GMF18
by 2038 whereas Boeing planned a newer Generation of More Efficient Airplanes Will Replace
Older Aircraft and Provide Capacity for Growth by 50660 total fleet.
Page 3 of 10
3. Growth Rate
a) Revenue Passenger-Kilometer (RPK) of Airbus is 0.4% more than Boeing and Airbus GMF
2019, 4.3% growth per annum. Boeing has a 4.6% RPK in 2019 and in regional basis South
Asia has the highest RPK i.e. 7.4% and Northeast Asia has lowest RPK i.e. 1.9%.
b) GDP growth for both the companies are same recorded for the year 2019.
c) Million passenger travel for airbus is +200 whereas for Boeing it was 199.4 which less but
Page 4 of 10
4. Region wise comparison:
Region Asia-Pacific Middle East CIS Europe Africa North America Latin America
5. Productivity KPI: The improvement in productivity has been a key driver for growth
Daily utilization
Airbus: Daily utilization in 1998 was 8.4 hrs/day and in 2018 it was 10.7 Hrs/Day 2 hrs/day
Boeing: Airlines may also carry increased numbers of passengers through fuller airplanes, adding
seats to each cabin, using larger airplanes, and increasing airplane utilization.
Load factor:
Airbus: Load factor in 1998 was 69% whereas in 2018 it was 82% which is 13% more as compared
to 1998.
Page 5 of 10
Boeing: Load factor in 1990 was 65% but is increased to 80% in 2019 which is 15% more as
compared to 1990.
Q.2: Which analysis in your view is most crucial for Boeing as well as Airbus to secure a
Ans:
Airbus:
kilometer. A passenger for whose transportation an air carrier receives commercial remuneration
Traffic forecast charts help to understand the Top 20 traffic flows (RPK).
One chart shows the sectors where traffic may increase more than 3 times and the other one
highlights sectors where the traffic may increase by more than 1 times.
It can be seen from the first chart that Domestic – India (4.8 times) is the region where maximum
On the other hand, in terms of max RPKs, Domestic – PRC (Public Reunion of China) is the
These 2 charts will be helpful, to take a decision on which zones to be targeted by Airbus
Further, the slides showing Origin & Destination traffic, shows that from 2018 to 2038, China &
Therefore, these slides should also help to justify the decisions made based on earlier 2 slides.
Page 6 of 10
Boeing:
In case of Boeing, there are multiple slides which gives in-depth knowledge of how the future
looks like and which are the areas to be targeted for increasing the market share.
To start with, graphical presentation of Top Global Traffic Flows shows that in the next 2 decades,
maximum growth in RPKs is expected to be in China & Asia Pacific zones (6.2% & 5.5%
respectively).
Similarly, through Air Cargo Growth graphical presentation shows that in the next 2 decades,
maximum growth in RPKs is expected to be in routes of East Asia – North America & East Asia -
shows that nearly 5% growth potential in Asia Pacific, Africa, Latin America & Middle East.
Pie chart showing Traffic forecast in 2038 shows that of the 100% RPK share, Asia Pacific is the
We feel, in terms of Passenger movement, analysis on Top Global Traffic Flows will be helpful &
in case of freight carriers, analysis on Air Cargo Growth should help for decision making.
Page 7 of 10
Q 3: Identify segments in both the reports that could be improvised further by including
If we see Boeing,
1) The report shows region-wise shows the total Delivery Units that the Airline caters to and after
that demonstrates the Traffic flow region wise. One such example of region-wise is shown
below. In my view, it is also essential for the analysis to also show or detail the breakdown of
the delivery units, specifically catering in each region. It will help the Airline to understand
which delivery unit will do well in that specific region. Currently, that data is missing.
2) We also see that in the Executive Summary doesn’t provide any competitor details and its
Page 8 of 10
4) Impact of CO2 emission goal is missing in the report of Airbus, which is very crucial
5) Probability distribution and Regression analysis can be added to both reports as both
companies are providing data of very long term 20 years and short term factors are missing,
such as changing climate, changing needs of Aviation regulatory bodies like FAA & CAA,
changing world economics, also we can do short comparison for 2 years or structure data on
Probability Distribution
A probability distribution is a statistical function that identifies all the conceivable outcomes
and odds that a random variable will have within a specific range. This range is determined
by the lowest and highest potential values for that variable. For Boing & Airbus, if a company
expects to bring in between lowest and highest in monthly revenue, the graph will start with
least at the low end and highest at the high end. The graph for a typical probability distribution
resembles a bell curve, where the least likely events fall closest to the extreme ends of the
range and the most likely events occur closer to the midpoint of the extremes.
Sales Predictions
A major application for probability distributions lies in anticipating future sales incomes.
Companies of all sizes rely on sales forecasts to predict revenues, so the probability
distribution of how many units the firm expects to sell in a given period can help it anticipate
revenues for that period. The distribution also allows a company to see the worst and best
possible outcomes and plan for both. The worst outcome could be 100 units sold in a month,
while the best result could be 1,000 units sold in that month.
Risk Assessments
Probability distributions can help companies avoid negative outcomes just as they help predict
positive results. Statistical analysis can also be useful in analyzing outcomes of ventures that
Page 9 of 10
involve substantial risks. The distribution shows which outcomes are most likely in a risky
proposition and whether the rewards for taking specific actions compensate for those risks.
Scenario Analysis
Probability distributions are highly useful in producing tools to evaluate various business
possible outcomes stemming from a specific action or consequence. This analysis often
involves examining the worst-case, best-case and most likely scenarios given the probability
Reference:
https://www.boeing.com/company/general-info/
https://www.airbus.com/company/we-are-airbus.html
https://en.wikipedia.org/wiki/Airbus
https://www.boeing.com/resources/boeingdotcom/commercial/market/commercial-market-
outlook/assets/downloads/cmo-sept-2019-report-final.pdf
https://www.airbus.com/aircraft/market/global-market-forecast.html
Thank you
Page 10 of 10