Boeing Airbus S-Curve Competition Model

Page 7

The IABPAD Conference Proceedings

Dallas, Texas, April 23-26, 2009

The goodness of fit of the model was measured using regression analysis. The results of the regression analysis for Airbus and Boeing are shown in Tables 2 and 3. The high R 2 values (0.987 for Airbus and 0.986 for Boeing) and the significant coefficients of both regression results confirm that the aircraft order growth competition model developed using the parameters provided in Table 1 stands scientific scrutiny. Both companies had a similar level of ability to handle new orders. However, according to the results, Boeing had a slightly higher ability to attract new orders than had Airbus from 1992 – 2004 (aB = 0.0502 > aA = 0.0478). A surprising finding is that the coupling parameters, cBA and cBA were both positive. Both coupling parameters were expected to be negative corresponding to the common belief that the competition between Airbus and Boeing for aircraft orders is fierce and both companies would suffer from each other’s existence. The value of the constant obtained for the attacker’s advantage was 1.3454, and the value of the constant for the defender’s counterattack was 1.1278. The figures imply that every time Airbus would obtain an order, Boeing would also obtain 1.3454 potential orders, and every time Boeing would obtain an order, Airbus would obtain 1.1278 potential orders. Table 2 The Result of Goodness of Fit between the Model and the Airbus’s Order Data Regression Statistics Airbus Multiple R R Square Adjusted R Square Standard Error Observations

0.993441106 0.986925231 0.986237086 355.0137705 21

ANOVA Regression Residual Total

df 1 19 20

SS 180756629.6 2394660.767 183151290.3

Intercept Airbus Data

Coefficients -227.1443308 1.070797838

Standard Error 130.0483149 0.028275192

MS F Significance F 1.81E+08 1434.181 2.32038E-19 126034.8

t Stat -1.74661 37.87058

The International Academy of Business and Public Administration Disciplines

P-value 0.096851123 2.32038E-19

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