For nearly two decades after the rivalries between the companies started the
hostilities between them show little abating. Boeing alleges that Airbus has
benefitted enormously from subsidies it receives from the European Union. The
counter allegations are equally vociferous where according to Airbus the amount
that it receives pales into insignificance when compared to the contract subsidies
given to Boeing by the NASA and US Federal government. The plot becomes even
ticker with allegations of tax breaks and impediments of Intellectual property
rights.
On a positive note, the airline industry is pulling together after massive losses
during the global downturn circa 2008. Back then revenue was declining as less
people were travelling unless it was absolute necessary. The air travelers held back
to their travel plans and lightened their belts in light of the global economic
downturn. However, that situation has since improved. They have stated to fly
again. Thus, the airline revenue is experiencing more stable growth now, thanks to
the improved conditions. The easing of airfares and increasing passenger numbers
resulted to improve airlines revenue. The increased employment and disposable
income levels have contributed to increased vacations and discretionary travel
have shown increasing trend as well. In addition, business travels have also shown
increasing trends which places considerable contributions to revenue because
businesses tend to pay more per ticket compared with normal travelers. The
business travelers usually pay a premium for their tickets because payment is
normally made under the company’s account or because last minute bookings
which attract a higher price. With the number of passengers expected to rise, so
do the income level of Boeing and Airbus are expected to surge.
-Explain the result with the application of Utilitarianism Approach to the above
case.
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