These last months, the situation of the air transport has been strongly influenced by the crisis which Airbus saw, due mainly to the delays in the delivery of A380. Sonaca is also touched by this crisis, and this, because Airbus is a very important customer.
Indeed, the orders for A380 were to represent up to 25% of the turnover of the Belgian company from 2010. The conflict which currently opposes the two giants of aeronautics, Airbus and Boeing, comprises at the same time an economic issue and a policy issue.
Moreover, the air transport is currently very dynamic; this is due, on the one hand, with the development of the Asian market and, on the other hand, with the increase in the oil prices, two factors which push the airline companies to modernize their fleet.
The current events will have a considerable impact on the structure even on the market of the aeronautical manufacturers. This impact is today already discernible besides in terms of market shares, dominant positions, or of pressure on the suppliers. It remains to be seen which will be the long-term consequences.
The first part of this paper consists of a description of the European and American air transport, through certain key events, this in order to include and understand well the last and current interactions between the two main players of the sector, Airbus and Boeing. It will then explain the cause conflict relating to A380 Airbus, and the consequences of this one within the entire sector. The illustration by the impact on the market shares will supplement the analysis of this sector moving constant since a few months.
Despite the emergence in Asia or Latin America or the livelihood of a Russia aerospace industry, the world is divided mainly in the area between Europe and the United States.
The two giants of the global aviation industry is undoubtedly Boeing and Airbus. If the first is on the market since 1916, it did not take long for the European Airbus, launched in 1970, to be seen catching up. Since then, the two players are engaged in a triple war: commercial, marketing and diplomatic.
Despite the strong competition that exists between them, the airlines agree on the fact that Europe must take care to preserve the freedom gained by the liberalization to create jobs and remain competitive in the global market for air transport.
However, the aviation market follows a cyclical logic and depends on external influences. Alliances (eg Star Alliance) have a stabilizing function. For it is through strategic alliances that will reinforce European airlines on the world stage in areas such as organizational networks, marketing and supply.
For airlines, these alliances are synergies that strengthen their global presence. They facilitate market access and increase the potential customer. This results in substantial opportunities to reduce costs, allowing to cope with the pressure of global competition. However, as competition intensifies in the alliances, some partners may in fact be in competition in some markets, it's called co-opetition.
In general, the aircraft market is highly concentrated. The predominant form of market is an oligopoly with few leaders. In Europe, most of the aviation focuses on Great Britain (35%), France (30%), Germany(22%) and Italy (8%).
Tags: Impact of the delays of delivery of A380 Airbus in the sector of aeronautics and the restructuring plan
[...] The bilateral agreement on trade in large civil aircrafts was completed in 1992. It involves government subsidies paid by both sides of the Atlantic and includes provisions which are more stringent than those of the WTO. The agreement regulates precisely the forms and limits of government support, prescribes transparency obligations and commits the parties to avoiding trade disputes. At the end of 90 years, U.S. companies of the aerospace environment enjoyed giving them a significant comparative advantage. In 1997, the dimension of sales of U.S. [...]
[...] The impact of delays in the delivery of the A380 Airbus on the aerospace sector, and the restructuring plan Table of contents i. Introduction II. Presentation of the aerospace market II.1. Airbus and the European aviation market II.2. Boeing and U.S. aviation market II.3. Interaction between the two markets III. The recent crisis at Airbus III.1. The causes of the conflict III.2.Consequences and the restructuring of Airbus IV. The impact on market share IV.1. Overall market share IV.2. The consequences of orders for the A380 V. [...]
[...] The strategies developed by Boeing and Airbus are the opposite of each other. Boeing chiefly relies on classical transport from town to town with medium sized aircraft, while Airbus builds on the hubs, that is to say the giant airports and jumbo hubs. All experts agree that a mix of both strategies is the best solution. In Europe, given the impossibility of developing excessive airport structures, the strategy for large aircrafts can be significant. In addition, there is indeed a link between the U.S. [...]
[...] The manufacturer has all the tools in hand to be "reborn" in the midst of this crisis on a new basis, and will be better able to compete with its American competitor. Boeing itself had experienced great difficulties after the violent conditions on 11 September 2001, which led to the elimination of 30,000 jobs in the United States. But today, the American manufacturer has emerged as the market leader again. V. Conclusion An analysis of the positions of Boeing and Airbus in the aerospace market has enabled us to understand the different trends in this very specific market. The aerospace market is run by a contr. [...]
[...] Indeed, the group has experienced many changes in leadership, which are related to the choice and timing of programs. Similarly, the organization and implementation of job sites have experienced many disruptions. Airbus must refocus on its products and customers, simplify its structure and eliminate duplication, rather than always benefit from state support that helps maintain an obsolete structure and organization . In this context, we may also speak of pseudo economic patriotism. A concrete example was given when the government and public services were mobilized to minimize the terminations of the subsidiary Sogerma while slowing its restructuring, while it had a large deficit with the views of Airbus. [...]
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