MBA 654 Case 10.1 Boeing & Airbus Robin Grouette 1. The overall strategy for Boeing seems to be focused more on customization and efficiency rather than size. With the focus of the 787 Dreamliner being that of long range with smaller passenger capacity‚ Boeing is anticipating that more direct routes to international cities will be developed rather than the typical hub and spoke routes which currently dominate the airline industry. Airbus’ overall strategy is focused more on the hub
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Airbus A3XX: Developing the World’s Largest Commercial Jet Introduction: From its inception in 1970‚ Airbus has maintained a reputation for innovative design and technology. Airbus has employed a “fly-by-wire” technology on all of its planes as an efficient alternative to computerized control for mechanical linkages. In addition‚ Airbus streamlined operations and features that have lead to better pilot utilization and lower training costs. These advances help explain why Airbus had received over
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Airbus versus Boeing: When is Intervention Not Intervention? 1. Where do you stand? Do you think the EU subsidies and soft loans to Airbus are fair? Why or why not? What advantages does Airbus gain from free financial support from the EU governments? Are complaints about the EU government intervention fair in light of Europe’s long history of democratic socialism? In our opinion the subsidies and soft loans provided to Airbus are unfair and provide them with an unfair competitive advantage.
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Case Study 39 Airbus vs. Boeing Prepared by Lisa Neumann Matthias Pernkopf Viktoria Scheidl Case study 39 Airbus vs. Boeing Contents: • • • • • History of Airbus History of Boeing Question 1 Question 2 Question 3 History of Airbus •1970: Airbus was formed as European consortium of French and German companies •Spain companies joined the consortium •1979: British Aerospace joined Airbus Industrie. •Each of the four partners operated as national companies •Airbus developed a deserved
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Airbus vs. Boeing Case Analysis What would be the value of a new VLCT to both companies? In order to value the market for VLCT‚ we constructed a financial model using minimal assumptions and no outside data (See Exhibit 1). In terms of the qualitative benefits for both: * Monopoly status on VLCT market * Douglas eliminated as competition * Significantly raise barriers for new industry entrants MAJOR ASSUMPTION: This evaluation of VLCT based on each company developing the aircraft
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aIRBUS AND bOEING: a cOMPARISON by Jeffrey Everette Hardee A Paper Presented in Partial Fulfillment of the Requirements for PUP 598 - Air Transportation and Regulation ARIZONA STATE UNIVERSITY September 2004 It may be argued that the next major challenge in the business of air transportation‚ beyond the invention of heavier-than-air flight and jet-powered planes‚ is the worldwide separation of the market between two mega-corporations. Airbus and Boeing currently dominate about 90%
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Airbus A3XX case study Group E10‚ MBA 2011 Airbus A3XX case study‚ Group E10 Airbus objectives Both Airbus and Boeing‚ as well as industry experts expected worldwide passenger traffic to grow at an average annual growth rate of 4.8-4.9% for the next 20 years (up until 2019). Given that the traffic was expected to almost triple in volume‚ both manufacturers expected a significant increase in aircraft sales‚ although their views on the market structure were different. Airbus expected hub-to-hub
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could pose as a strategic opportunity for Airbus which it could utilize to build a competitive advantage combined with its technological resources and capabilities. However‚ its assumptions of a drastic increase in VLAs demanded in next 20 years along with its ability to satisfy most of this are too optimistic. Provided that these assumptions (inc. breakeven points‚ initial order requirements) are normalized‚ A3XX is a project worthy to pursue for Airbus in order to exploit a neglected spot on the
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Week 6 Assignment: Airbus Duy Pham MGT 3303 Chris Zigrossi 10/11/2012 Airbus is a well-known commercial and military aircraft manufacturer throughout the world. Airbus prides itself on quality and safety. According to Airbus‚ “Airbus’ mission is to meet the needs of airlines and operators by producing the most modern and comprehensive aircraft family on the market‚ complemented by the highest standard of product
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Project Economics/ Feasibility The demand for very large aircraft (VLA) which is forecasted to be around 1550 planes including passenger jumbo jets and freight carriers in the next 20 year period provides an opportunity for Airbus to capture this market with its A3XX. The cash flow and commercial viability is analysed below. Discount Rate: 6% + 0.84*6 = 11.04% Growth Rate: 2% = inflation Tax Rate = 38% Year Units Sold Free Cash Flow PV of Cash Flow 2001 0 $ -682.00 $ -682.00 2002 0 $ -1
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