Airbus SE Versus Boeing Company - Technology-Intensive Aerospace Industry Competition

Abstract

Aerospace industry is one of the most capital and labour intensive sectors. These factors make the industry a global oligopoly, as there are few companies producing civilian and/or military aircraft on the market. The most important aircraft manufacturers are Airbus SE (Fr), Boeing Company (US), United Technologies Corporation (US), General Electric Company (US), Safran S.A. (Fr) and the Empresa Brasileira de Aeronáutica S.A. The United States, France and Germany are at the forefront of aircraft production. The huge aerospace companies are expanding their profile in the global market, dominating their market leadership. Their largest markets are the US, Asian countries, and Western European countries. Aerospace industry grew by 3.1 percent annually between 2015 and 2019, reaching USD 342.4 billion by the end of 2019. This trend decreased by 14 percent in 2020 due to the setback and closures caused by the COVID pandemic, so the sector finished last year with USD 296.1 billion. The business structure of Airbus SE, the world’s leading aerospace manufacturer is European Company (Societas Europaea, SE), which is a standardized and supranational form of public limited company in the European Union, while its largest competitor, Boeing is an American public company. There is one thing they have in common, though: they both have received significant state support.