Boeing 787 Verses a 380-Beauty and the Beast

The battle in the skies and to win the hearts of consumers is on between Airbuses 380 and Boeing’s 787. The competition has been fierce with both carriers touting victory. Though the battle between these two giants is far from over, it has acted as a catalyst for both carriers reenergizing the competition. The excitement of the competition is palatable between the two. Airbus is ecstatic to find itself well in contention for dominance in passenger travel and Boeing seems to have gotten a second lease on life, displaying a vibrancy that appears to have been absent from it’s marketing for years. Airbus preemptive strike with the A380 was heralded with great fanfare in Europe. It was seen as a victory for Europe and in particular the European Union. European Governments heavily subsidized the venture. Further Boeing has been recognized as a force to be reckoned with, by garnering support internationally as well.

Many speculated that Boeing might as a result of the move, bow out of contention for the global passenger market, but that assessment was seriously flawed as Boeing rallied the troops and went on the offensive. Boeing and Airbus have bet the company fortune on their separate visions of the future of aviation. Boeing has cast dispersions on the concept of the super airline, categorically stating that it is impractical and costly to build such massive planes. Airbus on the other hand is eager to dethrone Boeing as the leader in larger passenger planes and emphatically believes that the Super airplane in the future of air travel. At one point the two manufactures had even discussed a collaborative venture on a super airplane such as the Airbus, but this feel through when Boeing decided that the project was too costly for the benefits it could supply and consequentially backed out of the negotiations. Now a line has been drawn in the sand, though Boeing itself has admitted that it would be prepared to build a 380 like plane should the market demand it.

Both carriers claim record sales on these products. Airbus asserting that 2005 was a record year for sales and Boeing claiming that more units of the 787 have been sold than any other model in history. While both are demonstrating dynamic movement, it’s possible that Boeing has hit upon a winning strategy that will have long range benefits in sales on the 787 and future models for years to come. The tactic? Brilliant in it’s simplicity, ask the customer what they want, and then deliver. This may not provide earth shattering results in the short term, but this approach may have lasting ramifications on the companies long term approach to marketing.

Marketing strategies of the two companies have had parallels; both pitching economy and environmental supremacy. However they differ in a few key points. Airbus is relying highly on the Ah factor, having created the world’s largest ever commercial airliner. This in itself is enough to generate a lot of excitement. The first of anything technological is likely to attract a lot of attention. In addition, Airbus is promoting the use of hub-to-hub transport, where the airplane lands at central locations, and the passenger makes connections from there to peripheral airports. While the 787, doesn’t try to compete with sheer volume, Boeing argues that it can offer streamlined long distance travel in premium style suggesting that people want the path of least resistance to their destinations.

The similarities in campaigns for economy have both concluded that their perspective airplanes will save big money. The 787 estimates are a savings of 20% on consumption and Airbus has estimates of 35% savings over traditional airplanes. Further the Airbus 380 is according to company estimates more efficient than the family car. The 787 claims that the advantages to the environment land squarely on the side of Boeing suggesting the “dreamliner” will have significantly lower emissions due to technological advances in aerodynamics and revolutionary materials. In addition, the 787 will be quieter for nearby communities as well. Airbus claims to provide a quieter flight as well, noting that they are using lighter compost materials that will as a result produce lower emissions.

Airbus is counting on the seating capacity of the 380 to dazzle the masses. Estimates of capacity range between 500 and 900 passengers. Further the company points out the value of having so much space, by promoting the ease of customizing the Airbus, for airliners. Reports from some airliners contend that they will utilize the extra space by equipping the planes with gyms and other luxury accommodations such as casinos, and large bars. Airbus is actively selling the fact that the size of their plane is not an obstacle to selling the plane by making much a due about the major airports where they have successfully landed, in their attempt to thwart critics about the prohibitive size of the 380.

Boeing is relying heavily on the state of the art interior to make a stunning impression. For example, they have equipped the ceiling with diode lights and architecture that mimics the open sky. Further, they offer Internet access and ease in reconfiguring the interior.

Airbus has the solid backing of the European Union, not only as a point of European pride, but four nations have actually invested in the venture. For example, UK, France, Spain and Germany have subsidized the effort. These governments have praised it as the future of air travel. It may be possible that Airbus will be bolstered by competitiveness between Europe and The United Stated. This may prove to be a significant advantage to Airbus because it may have an added appeal to European investors. Boeing not to be out done has made significant efforts to sell the 787 in the Americas. For example, the consulted with Mexico’s leading carrier, Aeromexico on design modifications for hot weather in high altitudes. In addition Air Canada endorsed the 787 by buying several of the planes, and claiming the 787 will elevate their status in the International market.
Another advantage that Airbus may have over Boeing is that it’s already out there flying. It has the edge on Boeing simply because it came first. Estimates for the introduction of the 787 into the airways of the world place it in the field in 2008. While Boeing is still depending on speculation of the planes worth, Airbus is logging up hours. In addition the more success Airbus has in terms of accessing the worlds airports, and establishing the safety of the plane, the more difficult it will be for Boeing to scoff the concept of the mega plane. There are indications that there has been enough scuttlebutt about the 787, that Airbus is not feeling entirely at ease with their position, announcing their own dreamliner like aircraft the 350.

Another strategy that Boeing is employing is to market the 787 in conjunction with the777. Arguing that a behemoth such as the Airbus 380, is too much of a good thing and that Boeing provides versatility in terms of economy and service. They argue that the combination will allow for market fluctuations such as slowing of air travel.

One of the most subtle and tactics in the marketing war between Airbus and Boeing though played out in backrooms and meetings, out of the public eye. Airbus, worked diligently culling the favor of EU members and in addition consulted with carriers, airports and engineers to establish ease of transition to the 380. They were successful in marketing their airplane long before the first prototype was developed. They had in fact secured backers despite, numerous delays and cost overruns. Boeing employed a similar strategy in launching the 787 with some significant differences. They consulted their customers and the customer’s backers before they hit the drawing board. This was perhaps their most clever device.

Airbus’ plan seemed to rely heavily on politics. Getting the backing of the EU was a strong stroke because it secured an international campaign that supported Europe’s emerging role as a trend setter in the future of aviation. This is particularly attractive in the light of the fact that Boeing, and the U>S have dominated the industry for years. Further by including airliners, airports and their engineers in the process they fostered good will with those entities. That good will equated to millions in advance sales and in addition, was an excellent opportunity to promote the airplane to the general consumer. Further, the official government support of the project may have allayed safety fears connected with flying in such a large and cumbersome plane. Once this extended alliance was formed there was high motivation for the products success.

Boeing on the other hand, approached their customers and went a step farther by soliciting the advice and recommendations of the financial community that supports their customer base. This move allowed Boeing to equip the 787 with the exact specifications that the banks were looking for when making an investment of this magnitude. while on the surface this may seem a small gesture on the contrary it appears to be a smart move on Boeings part. Not only have they addressed the issues of concern that the airlines have based on customer’s comments, impressions and wants, they have also helped these airliners secure the needed funds for purchase by appeasing the financers.

Last year Airbus claims to have outsold Boeing overall. That success may have been generated in part by the launching of the airbus 380. There was plenty of excitement generated by the project and in the short term they may out perform Boeing’s launch of the 787. However, the race is far from over. Boeing made some inroads in it’s marketing position by rising to the occasion with an innovated product of it’s own. While the 787 is no super plane from the position of passenger capacity, Boeing showed innovation and resilience in the face of fierce competition. Further, Boeing demonstrated adaptability by approaching marketing from a more personal and frankly direct way by getting the financers and customers behind the project.

Intuitively, Boeings approach of offering conservative innovation and an approach geared to appealing to the consumer’s practicality is a winner. In the long term they may well see stabile growth in product development and sales. Their approach may be the most successful because they have managed to re-establish trust in their ability to be cutting edge, competitive and adaptable. On the other hand, Airbus may win the battle between the A380 and the 787 initially by sheer audacity and appealing to the customer’s imagination. That strategy however, may not yield as many long term benefits because it has the feel of a high risk investment that may or may not yield a high return.