Airbus Case Essay

Individual Assignment Question 1. Why is Airbus interested in building the A3XX? What are its objectives? Airbus is interested in A3XX for a number of reasons. Firstly, Airbus did not have a product to compete with Boeing’s 747 in the VLA (very large aircraft) market. By developing the A3XX it can gain a share in the VLA market. Secondly, as A3XX has more space per seat and wider aisles, it can attract passengers especially on longer routes. Thirdly, by comparing to Boeing 747, Airbus has 35% greater capacity and provide almost 25% more volume for free.

Don't use plagiarized sources. Get Your Custom Essay on
Airbus Case Essay
From as low as $9/Page
Order Essay

Though operating cost per flight for Airbus would be higher, it would need only 323 passengers to break even compared to 290 for Boeing 747. Lastly, from the numver of announced orders (32) of Airbus A3XX, there provides sufficient confidence for Airbus to build A3XX to meet the potential demand of customers. Below are the objectives for Airbus in building the A3XX. Firstly, as from the Airline Monitor suggested, A3XX will eventually replace the 747 as the ‘Queen of Air’, as every top international carrier will feel the need to have it.

Secondly, from the fleet composition for the 15 largest Boeing 747 Operators, there’s around 44% of using 747 as a total of the Widebody Fleet. Thus Airbus can gain a significant market share in the Largest Operator segment by building the A3XX. Thirdly, Airbus would have operating margins of 15-20% after delivering the first plane in 2006, and reaching full production capacity in 2008. This will be much higher compared to the operating margin of 5. % in 1999 (896/16700). Lastly, by increased capacity after building the A3XX, Airbus can increase the market share of both Deliveries and Orders segment. From the market share of Deliveries and Orders segment (5 year average from 1995-1999), Boeing has 68. 1% and 56. 5% respectively while Airbus as only 31. 9% and 43. 5% respectively. Since entry by new airlines was unlikely, Airbus believes that capacity increase will lead to increase in market share of this segment.

The Homework Writings
Order NOW For A 10% Discount!
Pages (550 words)
Approximate price: -

Our Advantages

Plagiarism Free Papers

All our papers are original and written from scratch. We will email you a plagiarism report alongside your completed paper once done.

Free Revisions

All papers are submitted ahead of time. We do this to allow you time to point out any area you would need revision on, and help you for free.

Title-page

A title page preceeds all your paper content. Here, you put all your personal information and this we give out for free.

Bibliography

Without a reference/bibliography page, any academic paper is incomplete and doesnt qualify for grading. We also offer this for free.

Originality & Security

At thehomeworkwritings.com, we take confidentiality seriously and all your personal information is stored safely and do not share it with third parties for any reasons whatsoever. Our work is original and we send plagiarism reports alongside every paper.

24/7 Customer Support

Our agents are online 24/7. Feel free to contact us through email or talk to our live agents.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

We work around the clock to see best customer experience.

Pricing

Flexible Pricing

Our prices are pocket friendly and you can do partial payments. When that is not enough, we have a free enquiry service.

Communication

Admission help & Client-Writer Contact

When you need to elaborate something further to your writer, we provide that button.

Deadlines

Paper Submission

We take deadlines seriously and our papers are submitted ahead of time. We are happy to assist you in case of any adjustments needed.

Reviews

Customer Feedback

Your feedback, good or bad is of great concern to us and we take it very seriously. We are, therefore, constantly adjusting our policies to ensure best customer/writer experience.