Boeing vs. AirbusAirbus and Boeing have created a duopoly in the aviation industry in which only two companies dominate a market. This market domination began after Airbus entered the market as a consortium consisting of France, Germany, later Spain and Great Britain; significant competition begins between the two companies which strive to gain market share. Due to rigorous competition, existing competitors such as Lockheed Martin and British Aerospace have failed to maintain their position in the industry, either by becoming manufacturers of aircraft parts or by purchasing one of the two companies . Boeing enjoyed a degree of monopoly power until the 1980s, before Airbus strategically entered the industry to curb Boeing's monopoly power and gain market share that had significant impacts on national economic growth. Airbus made a strategic decision from the start; it could achieve its current success mainly due to heavy investments in R&D and new design technologies and an advanced product offering surpassing its competitors, even Boeing. Airbus' success made it a viable competitor to Boeing. There is a logical explanation for the duopoly in the aviation industry; the aviation market requires large and consistent investments in fixed assets and the global aviation market can only support a few companies capable of achieving economies of scale with sufficient investment source for R&D. Government subsidies have played an important role in the aviation industry. Without subsidies, companies would not be able to maintain their position in a sector that requires high R&D spending and carries high risks associated with launching a new aircraft; other manufacturers could not be more efficient than other competitors. In the airline industry, demand for single-aisle aircraft is increasing as point-to-point airlines such as Southwest gain the market. The aviation industry is not structured effectively due to the subsidies both companies receive from governments. For a long time, they took this help for granted. They both fail to integrate production activities and suppliers located in dispersed areas, increasing transportation costs and leading to delivery delays during product launches. A development model with a wide range of product offerings without the consistency they both take is difficult to achieve cross-subsidies in productions that increase installation and costs. If outsourcing is managed strictly it can bring significant benefits, but it seems to create as many problems as it brings benefits..