When American aircraft manufacturers were lobbying to prevent Airbus' entry into the American market, George Warde, a former president of American Airlines was appointed by Airbus to promote its fleet in America. By 1978, Eastern and Pan American World Airways, Inc. had decided to include the A300 craft in their fleets. By 1984, Airbus introduced A320, the model that had incorporated fly-by wire technology, as a direct competitor to the leading player in the American aviation segment. Even before its maiden commercial flight, Airbus had already booked orders for 400 A320s, thereby marking its territory in American aviation. The proceeds from the A320s went a long way in off-setting losses for Airbus which in 1980s were believed to be between $7billion and $10 billion. By 1992, every major airline in the US was a customer of Airbus.
Current Trends:
As of date, the US market constitutes 30% of the current global demand for Airbus. The North American segment is a mature market and is largely driven by replacements. Combined contributions of the air sector contribute to 6 million jobs here translating to a GDP contribution of US$550 billion. Latin America is still a growing sector though there is a current surge of confidence in this segment as well. The contribution is immeasurable in terms of sustainable development. Air transport forms the backbone of the freight transport in the US and is a vital part of the eco-tourism sector, and the food supply chains domestically and for exports.
In 2007, Airbus recorded a bumper year in terms of new orders but 2008 saw a decided slump as marked globally. This trend carried forward to 2009.However, Airbus announced in Jan 2010 that it had recorded delivery of 498 aircraft to customers in 2009. It had beaten its rival Boeing in terms of deliveries for the 7th year running. By the end of 2009, Airbus had recorded orders in its books for US$ 437 billion. The A380 is the flagship craft of the company fleet as of now as it imbibes advanced technology and lowers costs simultaneously.
The A350XWB is expected to be ready for flight by 2013.It has been engineered to enhance the aerodynamic system considerably. Airbus is also working on "Cabin Concept" technology which will be available in-flight by 2050. In 2010, Airbus had displayed a blue-print of the green technologies adapted in the manufacture of its aircraft. It has accordingly applied these technologies and succeeded in creating a 100% recyclable cabin. Airbus is also working on developing alternative fuels; some of the source options being explored are algae, wood chips waste and yeast. Energy harvesting concepts are also being explored for in-flight operations.
[...] Ø SWOT Analysis: Strengths • Leading position in the global network/market share • Superior quality products • Asset Leverage • effectual communication • High R&D • Innovation • Extensive online growth • Loyal customers • Sound management system • Sound financial situation • Low labor cost • Supply chain Weaknesses • Decreased market share as compared to the Boeing when it comes to airplanes with more than 100 seats • The incapability to distribute a large sum of money for business as, Airbus recently manufactured its most sophisticated as well as most expensive airplane. • The expenditure of an airbus airplane is similar to the aircrafts manufactured by Boeing. • Airbus is a company belonging to Europe, while Boeing is of the United States hence any commotion in Europe has its effect on the airbus company. Opportunities: • Airbus has the capability of offering increased economical rates so as to draw their target market. [...]
[...] • Small airplanes can be launch for domestic destinations. • The interior has to be planned in such a way so that it is appreciated by the passengers. Threats • Disruption in flight plans due to natural calamities. • Presently most of the airline organizations use the Boeing manufactured airplanes, hence Boeing may try to convince the companies to continue using airplanes made by Boeing. • Persuading the companies to begin purchasing airbus can become a tough job • Uncertain airline industry environment • Increasing price of titanium and aluminum Ø Peer Benchmarking & Future Outlook: Airbus has always been in tough rivalry with Boeing each year for aircraft orders even though Airbus has been able to avail over 50 percent of the aircraft orders in the past 10 years since 2003. [...]
[...] By the end of 2009, Airbus had recorded orders in its books for US$ 437 billion. The A380 is the flagship craft of the company fleet as of now as it imbibes advanced technology and lowers costs simultaneously. The A350XWB is expected to be ready for flight by 2013.It has been engineered to enhance the aerodynamic system considerably. Airbus is also working on "Cabin Concept" technology which will be available in-flight by 2050. In 2010,Airbus had displayed a blue-print of the green technologies adapted in the manufacture of its aircraft. [...]
[...] The Airbus group is now continuing to increase its scope as well as product portfolio by using its proficiency to the military field. IN addition to this the company is also expanding its range of freighter airplanes, which will set new bench marks in the general as well as express freight market areas. With all its fly-by-wire airplane families Airbus' exceptional approach makes sure that its aircraft share the largest possible degree of harmony in airframes, on-board organizations, cockpits as well as handling distinctiveness that significantly decrease the operating expenditure for airlines. [...]
[...] By 1978, Eastern and Pan American World Airways, Inc. had decided to include the A300 craft in their fleets. By 1984, Airbus introduced A320, the model that had incorporated fly-by wire technology, as a direct competitor to the leading player in the American aviation segment. Even before its maiden commercial flight, Airbus had already booked orders for 400 A320s, thereby marking its territory in American aviation. The proceeds from the A320s went a long way in off-setting losses for Airbus which in 1980s were believed to be between $7billion and $10 billion. [...]
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