Iberiaairlinesbuildsabatna 130716013408 Phpapp01
Iberia Airlines Builds a BATNA
Case study in the INTERNATIONAL
MARKETING course.
Presented by: Ashraf Hatem Hlouh
IBERIA AIRLINES BUILDS A BATNA
THE CASE
Iberia
wanted to buy new jetliners
: chief financial officer and the man who led its search for wide body jets, meant from the start to run a real horse race. Dupuy made it very competitive, His rule: “Whoever hits its target, wins the order”.
Enrique Dupuy
(Boeing) : who had been appointed Boeing 777 as a
"revenue machine" He insisted that his could earn Iberia about
$8,000 more per flight than the A340-600 because it can hold more seats and is cheaper to operate.
Bright
(Airbus) : who is fumed at Iberia's pricing demands. A
New York City native and the company's highest-ranking
American, he pursues one goal: global domination over Boeing.
BATNA : Best Alternative To Negotiation Agreement.
Leahy
Airbus and Boeing are competing for market share through price cuts. In a volatile industrial market this guarantees major advantages in the bidding process. We, of course, cannot and would not counsel collusion between the aircraft makers. But, both firms would be better off with less aggressive price discounting. One of Boeing's failings is to not have a European working on business in that part of the world. Notice how Airbus has hired an American (Leahy) to sell planes in that market
Boeing
Airbus
Two competitors:
IBERIA AIRLINES
whom does it serve?
In 1944, the civil Aviation Conference was held in
Chicago, where fifty two states sighed an International
Convention that established the basic principles for the functioning of the air market: each country could negotiate bilateral agreements with other countries in order to regulate the market conditions that would govern air traffic. Before the 1980’s, the planning system used was basically “ point to point”, that is to say, direct flights from one city of origin to another of destination. Instead of planning simple routes,
Case study in the INTERNATIONAL
MARKETING course.
Presented by: Ashraf Hatem Hlouh
IBERIA AIRLINES BUILDS A BATNA
THE CASE
Iberia
wanted to buy new jetliners
: chief financial officer and the man who led its search for wide body jets, meant from the start to run a real horse race. Dupuy made it very competitive, His rule: “Whoever hits its target, wins the order”.
Enrique Dupuy
(Boeing) : who had been appointed Boeing 777 as a
"revenue machine" He insisted that his could earn Iberia about
$8,000 more per flight than the A340-600 because it can hold more seats and is cheaper to operate.
Bright
(Airbus) : who is fumed at Iberia's pricing demands. A
New York City native and the company's highest-ranking
American, he pursues one goal: global domination over Boeing.
BATNA : Best Alternative To Negotiation Agreement.
Leahy
Airbus and Boeing are competing for market share through price cuts. In a volatile industrial market this guarantees major advantages in the bidding process. We, of course, cannot and would not counsel collusion between the aircraft makers. But, both firms would be better off with less aggressive price discounting. One of Boeing's failings is to not have a European working on business in that part of the world. Notice how Airbus has hired an American (Leahy) to sell planes in that market
Boeing
Airbus
Two competitors:
IBERIA AIRLINES
whom does it serve?
In 1944, the civil Aviation Conference was held in
Chicago, where fifty two states sighed an International
Convention that established the basic principles for the functioning of the air market: each country could negotiate bilateral agreements with other countries in order to regulate the market conditions that would govern air traffic. Before the 1980’s, the planning system used was basically “ point to point”, that is to say, direct flights from one city of origin to another of destination. Instead of planning simple routes,