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OVERVIEW OF COMPETITION

Currently the Boeing 777 family has a multitude of competitors. These include the McDonnell Douglas MD-11, the Airbus A330, and the Airbus A340. In other markets, the 777 seeks to replace older transports. These older aircraft can be seen as competing with the 777 since the choice to the operator is whether to operate them, or the 777. In this category, competitors are Boeing's 747-100, -200, -SP, -SR, McDonnell Douglas' DC-10, Lockheed Martin's L-1011, and Airbus Industrie's A-300. However, the 777's primary competitors are the common fuselage A330-A340 series.

The 777 family of transports is highly competitive against all its competitors and as a result has captured a majority of potential customers. While some airlines, such as U.S. Airways, have decided to base their future fleet on Airbus Industrie transports, several others, most notably American Airlines, and Delta Airlines, have engaged in sole-source agreements with Boeing for their future fleet requirements with the 777 as the long range fleet backbone. Even European flag carriers Air France and British Airways have chosen to base part of their long-range twin fleet on the 777 even though their respective nations are directly involved as members Airbus Industrie.

In this age of efficiency and productivity, there is an increasing drive for airlines to standardize their fleets and reduce the number of aircraft families operated. This allows for cost reduction since pilots trained on one aircraft type can be certified on the entire family with minimal additional training. For example, a pilot certified on the 777 can cross very easily on to late model 747-400s, 737-300 thru -900, 757-200 thru -300, and 767 -200 thru -400. Likewise, Airbus A330 pilots can cross onto A340, A319, A320, and A321 aircraft types. This drive for fleet commonality contributes to competition in that the 777 may not be picked for its own merits, or de-merits alone, but rather, for those of the manufacturer's entire product line.

The 777's own competitive advantages are many. As with all aircraft acquisition decisions, cost of ownership and operation are very important to the customer airline. in this respect, the 777 provides some of the lowest cost per seat mile figures for any commercial transport. This is primarily attributable to its advanced engines as well as its design for ease of maintenance.