Boeing and Airbus: A Duopoly Market

The aerospace industry is a driving force of technology and innovation. At the top of this industry, at least in the field of airplane manufacturers, are Boeing and Airbus, headquartered in the US and the UK respectively. These two companies create a duopoly model, each competing with the other fiercely to manufacture planes that carry passengers all around the world. For decades, these rivals have stayed neck in neck with each other, manufacturing very similar airplanes, both trying to stay on the cutting edge of fuel efficiency and passenger safety. In general, Boeing supplies most of the United States’ airlines Continue reading Boeing and Airbus: A Duopoly Market

Thesis Corner: Tesha Shalon

A few days ago I had a talk with graduating senior and former Sound Economics writer, Tesha Shalon about her thesis on the impact of low cost carriers (LCCs) in the domestic airline market. In her thesis, she compares the profit and revenue of these airline companies to legacy carriers, who prospered during the airline regulatory era before the late 1970s. Tesha examines the effect of these LCCs on the profit and revenue of legacy carriers, while analyzing the extent to which LCCs’ profit compares to that of legacy carriers. Since deregulation in 1978, airline carriers have been forced to Continue reading Thesis Corner: Tesha Shalon