Boeing and Airbus follow two very different business models: Boeing is a private company, while Airbus is propped up by the European governments as an alternative to Boeing and other US suppliers. The result is, apparently, two very different approaches to business.
Today's Wall Street Journal [subscription required] reports on how Boeing and Airbus are tackling the issue of recycling old airplanes (and I thank them for the "beer cans" headline idea). Thousands of old airplanes are ready to be scrapped and replaced with newer models — but what happens to the old airplanes? Boeing is working with a set of outside companies, and has formed the "Aircraft Fleet Recycling Association" (which for some reason has no web page as yet). In other words, as a private company, Boeing has decided to allow separate companies to specialize in the recycling business, and furthermore to encourage an industry association to pool knowledge and perhaps set industry standards. Boeing understands that by disaggregating the recycling business from its core business, it will gain the usual benefits of disaggregation; in this case: specialization, creativity, and cost reduction.
Airbus, as expected from a government-supported company, is more used to consolidation and control. They've taken their recycling business in-house, they're accepting government financing to support recycling, and they're leading what appears to be an official government recycling project.
The differences between the Boeing and Airbus approaches to recycling will make a nice MBA thesis one day, but I bet I know which one will produce lower costs and more creative solutions.
Topics: · business · manufacturing
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