A capital-intensive industry that requires sophisticated high-tech and enormous economies of scale, the global large civil aircraft industry, only a few profitable players and has the duopoly of The Boeing Company (“Boeing”) and Airbus SAS dominated (“Airbus”). Although outsourcing is markedly since the 1970s, since the 1990s, Boeing and Airbus have become increasingly dependent on foreign suppliers, especially in emerging markets such as China. Industrial … Read more »

A capital-intensive industry that requires sophisticated high-tech and enormous economies of scale, the global large civil aircraft industry, only a few profitable players and has the duopoly of The Boeing Company (“Boeing”) and Airbus SAS dominated (“Airbus”). Although outsourcing is markedly since the 1970s, since the 1990s, Boeing and Airbus have become increasingly dependent on foreign suppliers, especially in emerging markets such as China. Industrial offset rules enable 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, production and operation management.
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Dean Xu,
Isabella Chan
Source: University of Hong Kong
23 pages.
Release Date: 9 September 2008. Prod #: HKU788-PDF-ENG
Ready to Take Off (A): The Global Large Civil Aircraft Industry HBR case solution

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