Assignment 1: Airbus Case Write a report on the Airbus A3XX.
In 750 to 1600 words, address the following questions: 1. Why is Airbus interested in building the A3XX—what are the favorable characteristics of the plane and what would be likely benefits to Airbus? 2. A. How many aircraft does Airbus need to sell each year in order to break even (in NPV) on this investment? The assigned assumptions for this calculation are described at the end of the assignment.
B. Where your break-even estimate in 2.A. relies on assumptions (including my suggestions below) that are unrealistic or uncertain, please comment on whether different assumptions would increase or decrease the break-even number. Along the same lines, you should comment on any relevant considerations that have been omitted in the calculation.
C. Compare the break-even number to likely annual demand for very large aircraft (VLA) up through 2019, considering both the projections supported by Airbus and those supported by Boeing in your determination of demand. Comment on the major factors determining demand, contrasting Boeing’s and Airbus’ views regarding the future of air travel.
3. How should Boeing respond to the possibility that Airbus might build the A3XX? Does your answer depend on what you expect Airbus to do? Even if you think there is no clearly best course of action for Boeing, you can describe the options and the ways in which they are desirable or undesirable.
4. Should Airbus commit to build the A3XX? Your answer to this question presumably will be based on the rest of your paper, especially the results from question 2. Feel free to comment on anything else that you think is important or interesting. General Instructions:
Prepare your answers in the form of a unified report rather than, for example, a set of bullet points. You may (but are not required to) include section headings, but the sections ideally will transition smoothly from one to the