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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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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Simplified Valuation Analysis for the Airbus A3XX Key Assumptions as of 2008 Price per Plane Number of Planes Operating Margin $225 40 17.5% Discount Rate Assumptions (a) Risk-free Rate 6.0% 10-year US Treasury yield (p. 8) Asset Beta 0.84 Risk Premium 6.0% Discount Rate 11.0% in millions General Assumptions as of 2000 Inflation Rate 2.0% Tax Rate 38.0% Results from the Model NPV = After-tax IRR = Pre-tax IRR = # planes sold by 2019 Capacity Constraint Violated? Required Investment as of 2000
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Introduction For this analysis of Boeing and Airbus‚ only the commercial planes are taken into consideration. Thus‚ we will not analyze the military aspect as well as the private jet market. Value proposition This part is going to analyse Airbus and Boeing value proposition: targeting audience‚ main value provided through services‚ the company’s major competitors‚ and how LinkedIn differs from them. From a customer perspective‚ value proposition is a statement of a specific target customer group
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Airbus is one of the world’s leading manufacturers of commercial jetliners and military air lifters. Airbus established in 1970‚ introduced the first wide-bodied twin engine aircraft. Airbus is recognized for its innovative design and technology‚ which offers fuel saving and maintenance advantages over its competitors. Airbus employees over 55‚000 people at sixteen sites in four European countries: Germany‚ France‚ The United Kingdom‚ and Spain. This paper contains information external
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Case Analysis: Airbus A3XX: Developing the World’s Largest Jet In 2000‚ Airbus Industrie’s Supervisory Board was making the biggest decision in the company history: whether Airbus should commit to develop world’s largest jumbo jet. At that time‚ there are only two major commercial jets manufactory companies: the younger Airbus and the bigger Boeing. Boeing had been at the forefront of civil aviation for over half century. Airbus was founded in 1970as a consortium and merged into a new company known
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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? I think that the subsidies and soft loans provided to Airbus are unfair and provide them with an unfair competitive advantage
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compete deters new entrants. 2. Substitutes: Low. There are several substitutes available like cruise‚ buses‚ cars‚ trains or not traveling at all. However‚ these options can’t compete with flying because the price-performance trade-off in this case is not attractive. 3. Bargaining Power of Suppliers: Low – Moderate. The supplier group in this industry is fragmented‚ so it is relatively easy for the aircraft manufacturers to switch suppliers. However‚ some parts require a high degree of
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Airbus A3XX: Developing the World’s Largest Commercial Jet (A) By Anson Boodhai Embry-Riddle Aeronautical University ABSTRACT On June 23‚ 2000‚ Airbus Industries’ Supervisory Board approved an Authorization to Offer (ATO) the A3XX‚ a proposed super jumbo jet that would seat from 550 to 990 passengers‚ have a list price of $216 million‚ and cost $13 billion to develop hauls larger shipments. This paper compares Boeing and Airbus in very large
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A to Z - Abbreviations & Acronyms http://www.chipsplace.com/helpful/Airbus/A%20to%20Z.htm#Abbreviations A to Z - Abbreviations & Acronyms (complete list found in back of PH) The really short list of Airbus acronyms and abbreviations: (before you get to it try to figure out what THS is) α – Stands for ALPHA as in α PROT. Refers to Angle of Attack. ACM – Air Cycle Machine ACP – Audio Control Panel‚ allows pilot to select which radios or interphones to listen to. ADIRS - Air Data Inertial Reference
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