Present Worth Analysis
Boeing Versus Airbus
For several years, Boeing has been working on development of the Sonic Cruiser, an inno-
vative lightweight plane that can fly near the speed of sound. This is about 15% faster than
a conventionaljet, so flying the Sonic Crqiser would allow airlines to cut long-haul flight
times.I
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Meanwhile, Airbus, Boeing's rival in the
passenger aircraftbusiness, has also been work-
ing on its version of a lighterplane. But Airbus is
betting on size rather than speed. Its new model,
the A380, is known as the super-jumbo and will
be the largest passenger plane in the world.
Airbus is hoping to use several recently'
developed composite materials, with the aim of
reducing by 20% both the weight and the man-
ufacturing cost. Airbus estimates that flying the
composite plane will allow airlines to cut their
operating costs by about 8%.J
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