The Making of Boeing's 787 'Dreamliner'

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Case Details:

Case Code : OPER053
Case Length : 17 Pages
Period : 2002-05
Organization : Boeing
Pub Date : 2006
Teaching Note :Not Available
Countries : US
Industry : Aircraft Manufacturing

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"The people of the world made a great choice. The name Dreamliner reflects a new airplane that will fulfill the dreams of airlines and passengers with its efficient operations, enhanced cabin environment, and the ability to allow profitable connection to more cities without stopovers. The name also demonstrates how the airplane's economics will enable more people around the world to fulfill their dreams of traveling to new places, experiencing new cultures and staying connected to one another." ¹

- Rob Pollack, Vice-president of Branding for Boeing Commercial Airplanes Marketing, in 2003.

"This (the 787) is a big deal for us. If we don't get it right, it influences our future in the business."²

- Michael Bair, Vice-president of Boeing, in 2003.

The Need for the Dreamliner

Since the late 1990s, the rivalry between the US-based aircraft manufacturer The Boeing Company (Boeing) and the European consortium Airbus Industrie³ (Airbus) has been intense.

Boeing - the world's largest aircraft manufacturer over several decades - was beginning to feel the pressure from its rival in Europe (Refer Exhibit I for market share of Boeing and Airbus between 1990 and 2004).

Airbus mounted a direct challenge to Boeing's dominance in the large aircraft category (the Boeing 747 Jumbo Jet) with the development of the Airbus A380, unveiled in January 2005.

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During the 1990s, Airbus's A330 and A340 models had been snapped up by several airline companies, whereas Boeing had just one big seller among its new aircraft - the 777.

Given the lack of buyer interest, Boeing had to shelve two aircraft manufacturing projects - 747X, and 'Sonic Cruiser,' (an aircraft that would fly just below the speed of sound) at the turn of the 21st century.

The competition between Boeing and Airbus intensified further after the September 11, 2001 terrorist attacks on the US.

In the late 1990s, Airbus focused its research efforts on the design of an aircraft⁴ with a seating capacity of more than 500; this was aimed at competing with Boeing's 747, then the largest commercial aircraft.

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1] "The Boeing 7E7 'Dreamliner,' a Plane Designed for Manufacture and the Customer," www.talkingproud.us, July 02, 2003.

2] "Will Boeing's New Idea Really Fly?" www.businessweekonline.com, June 23, 2003.

3] In the late 1960s, Britain, France and West Germany started the Airbus project to challenge USA's dominance in the aircraft market. In 1967, Britain withdrew from the coalition, and in 1970 the Airbus project was reorganized and named Airbus Industrie, a Franco-German company under French Law. Spain later joined the coalition with a 4.2% equity stake. Airbus Industrie is headquartered in Toulouse in France.

4] The A380 is a double decker aircraft with a seating capacity of 555 passengers in three classes - first, business and tourist. It was unveiled in January 2005 in Toulouse, France. Airbus planned to deliver the first A380 in October 2006 but has postponed it to April 2007.