June 2004 - Issue 6

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The History of Commercial Aviation

Airlines

Manufacturers

Airbus Industrie

In the late 1960s, U. S. manufacturers Boeing, Douglas and Lockheed completely dominated the commercial aircraft industry. In an effort to stay competitive with the Americans, several European companies agreed to combine their efforts under a single umbrella company, Airbus Industrie.

Based in Toulouse, France, Airbus' principal members included Aerospatiale (France), British Aerospace (Great Britain), Deutsche Aerospace (Germany), and later, Construcciones Aeronáuticas (Spain). Foreshadowing the difficulties of European Unification, Airbus partners struggled at first to overcome their respective cultural disparities, not the least of which were differences in language and measurement systems. But the member firms and their respective governments persevered, motivated by one common desire - to trounce their American counterparts.

Formed in an attempt to compete with American manufacturers, Airbus introduced its first jet, the A300, in 1974.

Launched in 1970, the consortium hoped to gain a competitive edge in the medium-capacity airliner market by introducing the first twin-engine widebody jet, the A300. The A300's two engines stood in contrast to its three-engine rivals: the Lockheed L-1011, the Douglas DC-10 and the Boeing 727. One fewer engine meant less weight, less fuel and, presumably, more profits for airline carriers.

Convincing the world's airlines to take a chance on the start-up's first jetliner, though, would prove to be a tough sell. Airbus sold only 38 A300s in its first five years. A sixteen-month drought without any planes sold seemed to mark the end for Airbus. Echoing Boeing's troubles of just a few years earlier, Airbus workers half-jokingly warned each other to catch the last train out of Toulouse. Finally, in 1978, Airbus broke through. Eastern Airlines agreed to purchase 23 A300s, marking the first major American airline to select an Airbus jet. Airlines around the world soon were placing their orders for Airbus jets, making the company a viable alternative to the U. S. manufacturers.

Over the next couple of decades, Airbus would introduce several airline models, all which share basic design elements with the A300. In 1984, the single-aisle A320 was offered to serve short-distance routes, while the A330/340 series was introduced in 1986 for routes requiring long range, but medium-size capacity. Construction of Airbus planes occurs at separate plants across Europe. For final assembly, fully equipped sections of planes are carried in the oversized fuselage of Beluga transports to plants in Toulouse, France or Hamburg, Germany.

Airbus has grown into a formidable power in the commercial airline industry. It’s only rival is American manufacturer, Boeing.

Since its inception, Airbus has grown into an impressive airline manufacturer, to say the least. With Lockheed's withdrawal from the industry in 1983, and Boeing's acquisition of McDonnell Douglas in 1997, Airbus remains just one of two giants left in the business. The competition that has arisen between Airbus and Boeing underscores the clash between European and American cultures and their different business philosophies. Airbus is a government-funded consortium facing the pressure of turning a profit while Boeing is a private corporation that, in lean times, has had to be dependent upon government contracts.

Airbus hopes to surpass its only rival, Boeing, by offering the largest commercial airliner ever built, the A380. Formerly known as the A3XX, the A380 exceeds the Boeing 747 by offering two full passenger decks. Still in production, the A380 isn't expected to enter commercial service until 2005. Considering the billions of dollars at stake in the commercial airline industry, Airbus and Boeing will likely remain locked in contention with one another until well beyond then, each hoping to outperform the other.