Introduction
Rick Adam and John Knudsen founded Adam Aircraft Industries (AAI) in the year 1988. AAI is an aircraft manufacturer company and it produces aircraft for civil and government markets. Adam Aircraft is situated in the South of Denver, Colorado at Centennial Airport (KAPA).
AAI provides a variety of general aviation aircraft, which includes the centerline thrust twin-engine Adam A500 and A700 twin-engine personal jet. Need
Rick realized that most of the aircraft at that time were based on old designs. It was tough to fly and also expensive to own and operate. Demand for used planes were high as they were cheaper than the new ones. But the airplanes become unsafe, as it gets older even when strict maintenance is done.
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The A700 falls even cheaper than the currently available corporate jet in the market at $2.2 million. Even A500 at $1 million, made of all composites is cheaper than the other twin turboprops in the market.
The story of Adam Aircraft shows that this business venture will clearly make benefit in the industry. The A700 and other jets are considered ideal for the growth of a national air taxi service. The economics of the AAI plan seemed completely within the range of possibility. The company can make money producing just 50 airplanes a year, a target that is easily achievable.
The business can still compete with other companies in the market because the catching point about Adam Aircraft is that they are cost effective and are more efficient. They use new technology and easy to access electronic systems.
Team
Rick Adam, who was formerly Air Force Captain, had the vision for AAI. Before starting Adam Aircraft, he was the general partner in charge of IT with Goldman Sachs and the founder of New Era of Networks. President and General Counsel John C. Knudsen head Adam’s management team. He was a legal representative specializing in Aviation Law, and also worked for five years with the FAA. The strong background of Adam Aircraft Industries with its management team, combined with Burt Rutan's attractive and efficient design, might just modernize the aircraft industry.
AAI should have more
The Boeing Company designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. It operates in five segments: Commercial Airplanes, Boeing Military Aircraft, Network & Space Systems, Global Services & Support, and Boeing Capital. The Commercial Airplanes segment develops, produces, and markets commercial jet aircraft for various passenger and cargo requirements; and provides related support services to the commercial airline industry. This segment also offers aviation services support, aircraft modifications, spare parts, training, maintenance documents, and technical advice to commercial and government customers. The Boeing Military Aircraft segment researches, develops, produces, and modifies manned and unmanned military aircraft, and weapons systems for global strike, vertical lift, and autonomous systems, as well as mobility, surveillance, and engagement. The Network & Space Systems segment researches, develops, produces, and modifies strategic defense and intelligence systems, satellite systems, and space exploration products.
Airbus was planning to introduce the A380 in direct competition to Boeing 747 to compete in the large aircraft sector. The rivalry between Airbus and Boeing was already intense. Boeing’s market share reduced from 70% in 1974 to 45% in 1990 while Airbus’s market share had increased from 1% to 34% during the same time (Exhibit 5). Encouraged by this increase in market share, Airbus was contemplating the introduction of A380. Development of new product line is extremely expensive in the Aircraft sector. Following is a quantitative analysis of the project to calculate the risks involved in introducing a new line of Aircrafts.
With the BCG Matric analysis, we can argue that Easy Jet enjoys a viable competitive position because of its actual market growth. However, its prices have been compared with those of rival firms. This has clarified that Easy Jet emphasizes on being a low-cost carrier with no surplus in-flight services. Writers such as Quelch & Deshpande (2004, p. 71) argue that the Boston Consulting Group growth/share matrix has offered an opportunity to establish the market share of Easy Jet and the company's growth rate. In the context of the company's low cost market, it is clear that the market is still are still increasing. In addition, with the current fleet volume of 80 aircrafts, Easy Jet can serve 160 routes across Europe. Industry experts have associated such massive penetration with the rise in numbers of passengers and a relative rise in market share. Consequently, it is clear that the company has become a star. Nevertheless, Easy Jet must expand its market share for it to transform into a source of income after the decline of the market's growth rate. With respect to the company's Boston Consulting Group growth/share matrix analysis, we can claim that the cash flow of Easy Jet from operating activities have declined as well as the annual finances. Nevertheless, the acquiring firm's cash flow statement is the main area of focus (Butler &
Aircraft Solution is a leading company in the design and fabrication of component products and services for companies in the electronics, commercial, defense, and aerospace industry. The company is automated to increase production while reducing costs. The main goal of the Aircraft Solution is to provide users the product by low cost and the quality product. The users of the company are employees, customers, suppliers, and contractors are permitted access the company network.
Aircraft Solutions (AS) is a recognized leader in the design and fabrication of component products and services for companies in the electronics, commercial, defense, and aerospace industry. Located in Southern California, AS has a dedicated, trained workforce and maintains a large capacity plant and extensive equipment to meet customer requirements. Much of the equipment is automated to increase production while reducing costs. The company's workforce has a large skill base: design engineers, programmers, machinists, and assembly personnel to work its highly-automated production systems.
As the new president of the airline, Stephen’s first concern is to create a financially solid company since it is a common presumption for airline industries that maintenance costs rise with the age of aircrafts.
In between other revolutionary marketing programs, in 1981, American introduced the AADVANTAGE travel awards program to reward frequent flyers. On May 19, 1982, the company had a reorganization plan and a new holding company called AMR Corporation, which became the parent company of American Airlines. This reorganization brought to the company new frontiers. A year after AMR Services was formed as a subsidiary to provide aviation services to the other airlines, and AMR Consulting group which would provide consulting services in airline related business. Since 1990 American airlines has conquered most of its objectives, some of them are: the expansion of its routes all over the planet, the creation of a world wide web site for the convenience of its passengers and formed a customer-driven global alliance named “one world” with other airlines designing a raised standard of global air travel.
* Contracts with competition. Their maintenance facility in Tulsa has started receiving other company’s planes for contracted repair. This is an opportunity to increase and build another addition onto American Airlines family.
Market Share Airbus will launch their new large, long distance plane A380 in 2006. This plane can be a dreadful competitive product to Boeing. If Boeing falls behind regarding innovations, fuel efficiency and other attributes of a long haul airliner, it will soon lose its market share. In order for Boeing to compete in the aviation industry, it is crucial to take on some risk and develop this new 7E7 project. This helps the company to fight against its competitors and recover from the slump in the industry.
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Because the analysis above gives a positive NPV, it is in airbus best interest to build the A3XX. But since Airbus needs to sell at least 39 annually aircrafts
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getting new aircraf. Newer aircraft are essential for several reasons; they are lighter and better built, they are more fuel-efficient, require less maintenance and repairs, provide more amenities to passengers and are deemed to be safer in the eyes of the consumer. American Airlines replaced approximately 10% of their fleet in 2013
Airbus announces the Airbus A380 as “greener, cleaner, quieter, smarter: the A380 is a game changer in terms of aircraft performance, cost efficiency,