Airbus A3Xx Case

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.

Boeing pursues Product Differentiation strategy in order to create competitive advantage over Airbus. Boeing differentiates its products by increasing number of seating capacity, engine capacity, innovating new winglet designs and by manufacturing wide range of products in respect to the change in market

1. Why would a large and complex company like Boeing employ off-the-shelf application-specific software for accounting, human resources, supply chain management and other core business processes? And why do they choose to own, host and operate all of their own software rather than to for example outsource payroll to ADP Corporation or sales force management to Salesforce.com? [list]

This report is dealing with the case of ACME Electronics vs. Otto Gunter. Gunter purchased a computer from ACME Electronics in 2002. In 2004, the hard drive crashed and he brought it in to ACME Electronics to have it replaced, as well

Boeing’s faces these marketing risks. The marketing manager brought it to the airlines, who reviewed, among other things, its flight characteristics, range, cursing speed, interior, systems and operating costs the feedback to designers the airplanes to meet the best the requirements of customers is a difficult process. Airline bit difficult to design. Therefore, the configuration changes constantly.

Of considerable concern is that Boeing and McDonnel Douglas have a significant head start in the market. In a shrinking market, the Tri Star, though far superior to the competition, may have missed the window of opportunity. Airline revenues are down while labor and fuel costs are rising. This will drive down demand for all producers of wide-body aircraft.

This comprises the main reason why Airbus is interested in building the A3XX. It attempts to create a dominant design that the market for large planes may pledge allegiance to, moving from simply product innovations to process improvements for the VLA. It does intend to just replicate the 747s and achieve a jumbo jet with the same capabilities. Rather, it aims to increase the seating capacity and reduce costs for the operators by so much more than what Boeing’s alleged monopoly holds, with the objective of seizing the market

• Provide background on the global industry • Present a regional analysis • Discuss current and future evolvement of the industry (trends) • Discuss challenges and strategies impacting the industry • Discuss the new breed of airlines • Discuss why airlines fail and how to achieve success

Boeing adopts a very thorough, well planned out process to manage the project. The stages are defined clearly and tasks involved in each stage are carried out sequentially. The first stage of their approach is the project definition phase during which Boeing identified holes in the market not met by existing planes, assessed future airline needs, considered alternative plane configurations, explored feasibility of possible technologies and performed preliminary estimation of costs. During the market assessment, analysts gathered information regarding future needs of airlines by speaking directly to

If you want American Airlines to compete with other leading airline companies, then the current fleet needs to be modified and upgraded. Fuel efficiency importance Since we know that global warming

American Airlines is looking to expand its market to more wealthy consumers by offering an excusive line of aircraft consisting mostly of first class and business type seating. This new model will be labeled under the title “Elite” and would market routes to and from major city hubs during heavy business traveling hours. American Airlines will position this service as the, “Black Jet” since that would be the standout feature of the aircraft. American can take advantage of its existing market base along with its frequent fliers to sell the experience of a flight experience beyond maximizing passengers. The target motto would be a “flight redefined.” American Airlines Elite would target business, first class, and frequent flying travelers.

In its published Current Market Outlook (CMO), Boeing forecast a much smaller VLA market despite general agreement on overall growth with GMF. Boeing predicts the total market demand for VLA aircraft is 330 over the next 20 years. In addition, the most of the demand for the lager planes would not materialize for at least ten years. If the predicted market demand is true, there is no way for Airbus to reach the breakeven point. It is most likely Airbus will run out of the business if it commits build A3XX. In this case, Boeing could ignore the A3XX and concentrate on its existing product line. That is to say, Boeing had an opportunity to enhance profitability on its existing products while Airbus was tied up developing the A3XX.

Developing the World's Largest Commercial Jet In this case, we will be analyzing strategic interaction between Airbus and Boeing, the two leading producers in the global commercial aircraft industry. In particular, we will be considering Airbus' proposed launch of the A3XX, their entry into the intercontinental jumbo jet segment, and Boeing's potential competitive responses to this entry. We will attempt to answer the questions: Should Airbus enter the jumbo jet segment? If so, how?

In 2000, Airbus was considering launching a super jumbo jet that they called A3XX. This aircraft could seat 550 – 900 passengers, which classifies it as a type of “Very Large Aircraft.” The defining feature for Very Large Aircraft (VLA) was that it could hold more than 400 passengers (or carry more than 80 tons of freight). Boeing was a monopolist in the VLA market, since the only other VLA available for purchase was their 747 aircraft. For Airbus, the question of deciding whether to launch A3XX was a question of whether they (a potential entrant) should attempt to break into the market of an incumbent monopolist (Boeing).

New Large Aircraft (NLA) or New Generation Large Aircraft (NGLA) are the future of long distance air travel. With current air craft size reaching unknown proportions to humankind, airports that are interested in attracting future business as well as the revenue the large amount of passengers per flight may generate, will have to adapt their installations to the demanding needs of these supersized vehicles. The following paper will focus on the new Airbus A380 and the requirements that airports inviting this magnificent work of engineering to use their installations will need to meet.