This post is a response to Jeremy Chan’s post on the aviation industry. In his post he discusses the supply chain crunch that both Boeing and Airbus face. With the increasing demand for planes, Boeing and Airbus face shortages for manufacturing resources. I agree with him in the fact that they cannot satisfy the demand, but I do not agree with the fact that there is no foreseeable change in the supply chain. The two companies must change their supply chain, otherwise they will lose millions of dollars. One option that I conceived was maybe a merger between the two companies. Because the two companies are in vulnerable situation, a new competitor could enter the market and thrive but if they merge they can eliminate that. If the merge they could also streamline they’re supply chain and operations and make it more efficient. The two companies could produce the best quality planes and keep the trust instilled within both companies from the airline companies. It is a win-win situation for both companies.

Sources:

https://blogs.ubc.ca/jdchan/

http://www.economist.com/news/business/21621851-fixing-one-supply-chain-problem-planemakers-may-be-creating-another-good-parts

http://www.freudenberg.com/en/Press/Pressereleases/Pages/Auftrieb-für-den-Airbus-A350.aspx