William Boeing studied at Yale engineering college before leaving to make his fortune on the West Coast. After trading forestlands, Boeing moved to Seattle, Washington. In 1910, he attended the first American air meet in Los Angeles. He returned to Seattle eager to explore the new field of aviation. The next five years afforded Boeing the opportunity to discuss all the possibilities with George Westervelt, a Navy engineer that had studied at the Massachusetts Institute of Technology and taken several aeronautics courses. They quickly determined that they could build the best airplane on the market.
Although Westervelt’s naval duties called him east before they finished constructing their first plane, Boeing continued constructing the B&Ws. Boeing incorporated the company as Pacific Aero Products Co. in 1916, but renamed it the Boeing Airplane Co. a year later. By 1917, the company employed 28 people from pilots to boat builders. When the company faced financial difficulties, Boeing used his own resources to guarantee a loan that covered wages.
World War I created the first large-scale demand for American airplanes. The Navy needed training planes, and officers were determining which models to purchase at the base in Pensacola, FL. Because the Model C seaplane could not fly from Seattle to the base, Boeing shipped two planes, by train, across the country. The demonstration went well and the Navy ordered 50 airplanes. By 1918, Boeing had 337 employees on payroll.
When the war ended, the military’s demand for airplanes ceased. Even civilian planes met limited demand. Boeing Airplane Co. was competing with war-surplus airplanes. In order to survive, the company began building furniture and sea sleds. Although Boeing received limit...
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http://www.airbus.com/company/history/the-narrative/early-days-1967-1969/
http://media.pearsoncmg.com/ph/bp/bp_mylabs/akamai/template/video640x480.php?title=Airbus%20vs%20Boeing&clip=pandc/bp/2012/MGMT/IB/AirbusBoeing_H.264.mov&caption=bp/bp_mylabs/akamai/2012/MGMT/IB/xml/AirbusBoeing.adb.xml
http://www.bloomberg.com/news/2011-09-07/fedex-said-to-weigh-boeing-airbus-wide-body-order-to-renew-delivery-fleet.html
During the 1970s and 80s production of single engine factory built aircraft has virtually come to a halt. With many product liability lawsuits, which led to large verdicts against the manufacturers of the single engine aircraft, manufacturers slowly dropped out the single engine aircraft business. With no more single engine aircraft being built used single engine aircraft have dramatically increased in price. These events have led to an increase in homebuilt aircraft that cost a fraction of the price of a previously owned Cessna, Beechcraft, or Piper. Another boost to homebuilt aircraft has been the FAA. In the role of promoting air commerce, the FAA has supported regulations and advisory circulars that encourage the development of homebuilt aircraft; for example Advisory Circular 20.27d. (Kolczynski, 2) According to this anybody can buy plans and parts and obtain a special airworthiness certificate to operate the aircraft in the experimental category if the amateur builder does more than 50% of the fabrication or assembly, and does solely for his own education or recreation. (Kolczynski, 2)
At the age of 26 he dropped his successful career of a movie producer and focused on his second passion, aviation. Hughes bought his first plane in 1932 and with the help of some of his engineers he increased the performance in his plane. This won him first place in his class. The expenses for his love of building his flying machines funding became an issue. He then created the Hughes Aircraft Company in Clover City California. The company that he started later became the leading defense contracting company in the United States. In September 1935, Hughes, created a flying machine called the H-1. He went to set the landplane airspeed record of 352 mph (566 km/h) over his test course near Santa Ana, California.
The Airplane was first invented in 1903; it amazed everyone but never really took off because of how dangerous it still was. They used planes in WWI but they threw them aside. After WWI (around mid 1920’s) the Federal Government had the idea of airmail. This was readily accepted; instead of receiving mail in two weeks it would only take a couple of days. Soon after this, transporting people quickly caught on although only the upper-class people could afford it, it soon became accessible to almost everyone. (Inventions: Airplane)
The preflight arrangements for Charles A. Lindbergh’s flight began in early 1927. Charles A. Lindbergh presented his proposal to Knight, Bixby, and other St. Louis businesspersons whom were impressed with Lindbergh’s confidence and agreed to sponsor his flight. Lindbergh had setup a $15,000 budget and $2,000 of which was Lindberghs. A name, the Spirit of St. Louis, was established. Lindbergh was to choose the plane and decide on all other aspects of the proposed flight. According to Lindbergh, a single-engine plane, rather than a multiengine plane increased the chance of success. His theory was the less weight, the more fuel, the greater range. The experts would say that a solo flight across the Atlantic was simply suicide. The burden on the pilot was considered too great—he would have to stay awake for over thirty hours, enduring constant stresses. Immediately, Lindbergh began searching for the right plane at the right price. He contacted a number of aircraft companies. Some did not respond and some turned him down. Things were not looking good for Lindbergh. In early February 1927, the Ryan Airlines Corporation of San Diego, California, had responded within twenty-four hours of receiving Lindbergh’s telegram regarding a plane for his proposed transatlantic flight. Yes, they could produce a plane that could fly nonstop from New York to Paris. It would cost $6,000 not including the engine, and would take three months to build. The Ryan workers worked on the Spirit of St. Louis morning, noon, and night, seven days a week. Voluntary overtime became a normal operating procedure, and work on most other planes had nearly stopped. After meeting with the company’s president, they decided to modify an existing Ryan model by outfitting the plane with extra fuel tanks and increasing the wing area, thus would give the plane a maximum range of 4,000 miles, more than enough to reach Paris. In the picture to the right, it shows how the main fuel tank in the fro...
Wilbur and Orville Wright spent their lives building and working with mechanical devices. They began with little toys as children and then grew up and began working with bicycles. These works lead them towards their work with airplanes. The Wright Brothers tried for many years to build a successful flying machine and succeeded. The Wright Brothers laid the foundation for aviation when they made history by being the first to create a successful flying machine.
The Boeing Company originally started out as the Pacific Aero Products Co., which was founded on July 15, 1916. The name was changed about a year later to The Boeing Airplane Company. The Boeing Company stayed relatively small until World War I when they were selected by Navy officials to produce an order for 50 model C planes for the war efforts. The company continued to prosper and by the late 1950s, Boeing President William Allen knew that the company had the scientists, the experience and the facilities to lead the company into uncharted territories. He was right, Boeing has emerged as the leading aerospace company in the world today.
The Boeing Corporation is one of the largest manufacturers in the world. Rivaled only by European giant Airbus in the aerospace industry, Boeing is a leader in research, design and manufacture of commercial jet airliners, for commercial, industrial and military customers. Despite enjoying immense success in its market and dominating an industry that solely recognizes engineering excellence, it is crucial for Boeing to ensure continued growth through consistent strategy formulation and execution to avoid falling behind in market share to close and coming rivals.
United Airlines is one of the largest airlines in the United States and worldwide. Also, it is ranked as the oldest commercial airline that was founded by Walter Varney. United Airlines started as an Air Mail Service and then extended its services to be an Air Carrier. In 1927, William Boeing started his own airline, Boeing Air Transport, and started buying any other air mail companies, which included the Varney’s Air Mail Company. After a while, Boeing started manufacturing aircraft and parts, which allowed him to extend his company to a bigger organization. Also, within Boeing’s company, he bought several airports to expand his organization. In 1929, Boeing’s company has changed its name to be United Aircraft and Transport Corp. (UATC).
The invention of planes would later allow easier trade and delivery around the country. In an article by Annamarie Edelen, she states that in 1917 the United States started transporting mail by plane. (Edelen) This made transportation much easier from coast to coast. In addition to this, when mail started being delivered by plane, businesses were then able to receive and ship their products faster. Because things were now being shipped by air, shipment times were greatly reduced. In the same article, Edelen also states that in 1917 planes transporting mail saved 22 hours in delivery from one coast to the other. (Edelen) This is a major improvement from automobiles and trains. Planes also had a major impact on international trade. In an article called “Why Planes Are Taking Over Global Trade”, Tim Fernholz said “about one-third of US imports by value entered the country on a plane.” (Fernholz) This number is still rising. He also stated that from 1965 to 2004 air cargo grew about 2.6 times faster than ocean cargo. (Fernholz) International transportation using planes is growing faster than any other method. This is because of the time it takes for the product to be shipped. The invention of the plane has decreased the time it takes for people to buy and trade items. This aspect has impacted American culture more than
...others got a United States contract for one plane, and with the hope of selling overseas they resumed flying. Wilbur toured Europe and demonstrated their plane. In 1909 the Wright brothers founded the Wright Company, which acquired their patent and infringement cases. Wilbur was president, Orville vice president.
Cessna Skyhawks, presented in 1956 by Clyde Cessna, were very profitable and popular in the 1980’s. However, with a terrible downturn in the aviation business in the following decade and a half, Cessna was unable to produce enough profit to sustain production of the Skyhawk and similar piston-engine planes. Cessna was compelled to lay off 75 percent of their representatives due to the loss of production. Fortunately, Skyhawks are not the only aircrafts that Cessna built and they could stay in business.
The 737 was originally created on on May 11 1964, however it wasn’t until November 9th 1964 that production was officially approved. On February 19th 1965 Lufthansa placed its first order for the 737-100, and on the 9th of april 1967 the 737 flew for the first time. In 1970, Boeing had less than 35 orders for the 737 and considered canceling the program. Boeing however ultimately decided to cut from other areas and to continue the 737 program. By deciding to continue the program Boeing paved the way for its future success and formed the backbone of many airlines that exist today that solely fly the 737.
Boeing/Airbus Case Analysis Competition in the Commercial Aircraft Business. With only a few large companies across the globe (Boeing, MD, and Airbus), the commercial aircraft industry essentially exhibits the qualities of an oligopolistic competition with intense rivalry. Here is an analysis of competition in the commercial aircraft business using Porter’s Five Forces. Figure 1: Porter’s Five Forces Applied to Aircraft Industry. Barrier to entry: - High barriers to entry, to a certain extent, help understand the risks involved in operating in the aircraft industry.
Boeing 787 Dreamliner was first announced to the public in January 2003 with approximated costs of five billion dollars , since the sales of the aircraft were high it was supposed to enter commercial service during 2008 but the building up of aircraft seemed more anticipated than expected , since the management decided to use composite materials as an alternative for traditional metals as composite materials are lighter , stronger , cheaper and also resistance to wild variety of chemical agents including acid rain and salt spray as these are the conditions under which metals suffer , Boeing also shared their views in development of air craft with suppliers which effected in a project significantly more anticipated than expected . More than three years later after the project exceeded the estimated budget at last 787 entered commercial service in September 2011.
The 777 would be manufactured differently than previous Boeing aircraft. Various efforts would be undertaken to increase demand and reduce manufacturing costs of the 777 in an attempt to create positive cash flows sooner. To increase demand, the 777 would be the first fly-by-wire Boeing aircraft, a feature Boeing’s competitors already added to their aircraft. Boeing also made an effort to get their large customers involved in the design process from the beginning in an effort to increase its competitive advantage and long-term demand for the 777. As a cost saving measure, the design and manufacturing teams would work together to create a detailed simulation of the manufacturing process that would reduce the cost of “improvements” that were often made during manufacturing thereby reducing the overall manufacturing cost. Furthermore, Boeing would invest in more training for its engineers on the new CAD system. This new manufacturing process would lead to large capital outflows in the short-run. The challenge for Mr. Shrontz is determining whether these capital investments will lead to an increased return on equity for Boeing.