The commercial aviation industry has been a booming industry since the first airlines were founded, and in today's world of increasing demand for air travel, Airbus is trying to gain market share in the VLA, or Very Large Aircraft, market. Airbus' main opponent in terms of the production and sale of jet aircraft has been Boeing, with its importance to the US economy over the past 50 years in supplying the army with defense aircraft, commercial airlines aviation aircraft and even NASA's space shuttles. . To date, at the beginning of the 21st century, Airbus has not been able to produce a product capable of competing with Boeing's 747 in the VLA market; Boeing holds a monopoly in the VLA market in terms of 747-xxx aircraft. To gain a greater market share in commercial aviation, Airbus, renowned for innovative design and technology, began exploring the possibility of creating a jumbo jet in 1990. Now, 10 years later, Airbus has developed and finalized the design of base of their first VLA aircraft: the A3XX. ENTRY INTO THE VLA SEGMENT Airbus market research has predicted that the VLA segment will have unprecedented growth due to increased demand for air travel and of the growing traffic in major airports on a global scale. This increase in passenger and cargo traffic would only be possible with larger capacity aircraft. Among the top domestic contributors to future VLA demand, Airbus predicted that China and other Asian economies would experience the highest annual growth. Airbus also believed that a larger aircraft operating long-distance flights had better operating economics; operating the flight costs only 12% more than a 747, but offers 35% more space which is effectively a source of revenue. VLA Air...... middle of paper ......question, but Boeing believes congestion at major airports will become a major problem. BOEING'S RESPONSEBoeing has 3 main options in terms of its response to the emergence of Airbus' VLA market. First, Boeing could develop and produce a competing super jumbo jet. Designing a new super jumbo jet would require significant development costs. The market for these aircraft is not sufficient to sustain and earn a positive NPV for 2 operators in the VLA segment. Another option would be to reduce the prices of 747 planes. Reducing prices is not the preferred solution as it could only divert sales and margins for Boeing could also reduce. Another response Boeing could adopt is to ignore the potential threat posed by Airbus and maintain the status quo. Maintaining the status quo would probably be the best option as Boeing could continue to benefit from existing products.