BOEING VS. AIRBUS ✈️

Bullish Studio

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Transcript

00:00 Despite this plane barely selling, it was still a brilliant idea to make it.

00:03 In the early 2000s, there was a storm brewing between the duopoly Boeing and Airbus.

00:07 The American company Boeing was going all in on the 787 which was a fuel efficient,

00:12 mid-sized plane.

00:13 Whereas Airbus was investing in the A380, a jumbo jet which would involve people flying

00:16 to a major airport and then taking an A380 from there.

00:19 These two different models are known as Point to Point and Hub and Spoke Network.

00:23 And both companies were convinced their models were going to be the future.

00:26 But here's where it gets interesting.

00:27 In 2005, the same year the Airbus A380 started selling to customers, Boeing announced that

00:32 they were going to make a 747-8 which is very similar to the 747 everybody knows.

00:37 But the key difference is that they extended the plane, allowing it to fit almost as many

00:40 people as the A380.

00:42 And unlike the A380, which cost $25 billion because it was built completely from scratch,

00:47 the 747-8 program only cost about $5 billion to build.

00:50 The reason Boeing built this was because Boeing realized that they could not let Airbus control

00:54 the jumbo airliner market.

00:56 So by building the 747-8, this forced Airbus to commit more time and resources towards

01:00 the A380 program to ensure it would be a dominant player.

01:03 And keep in mind while this was happening, Boeing was already stacking hundreds of orders

01:07 for its real plane of the future, the 787.

01:09 And now you know why.

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