Struggling Airlines and their Prospering Suppliers

Such company’s as Boeing enjoy progressively increasing growth rates in their demand chains.  Even with the price wars and cost cutting techniques of airlines throughout the world, suppliers of the airline industry are prospering.  Boeing announced an 21% increase in annual net profits for the 2011 fiscal year, totaling $4 billion dollars. 

With the introduction of the 787 Dreamliner, Boeing seems to have a “backlog” that has an ever increasing growth rate of demand that the company doesn’t seem to supply for.  Even Boeing’s main competitor, Airbus, has had a hard time keeping up with demand and supplying the world with flying buses.  

With the European crisis, soaring gas prices, and slow economic growth in the United States, companies such as Boeing and Airbus don’t seem to be affected by such problems.  These company’s problems stem from their supply chains being able to supply the world with what they demand. 

Link to:  http://www.economist.com/node/21543555