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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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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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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manufacturer’s orders. 5. Competitive Rivalry: High. Boeing and Airbus compete intensely in the large passenger jet aircraft market. Boeing was the market leader for many decades‚ but recently Airbus has challenged its position. Since industry growth is slow‚ both companies fight for market share. Issues the 787 will address: Bargaining power of the airlines that place huge orders and the competitive rivalry between Boeing and Airbus have the largest impact on profitability in the aircraft industry
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INDEX 1. INTRODUCTION 2. OBJECTIVE 3. SPECIFICATION 4. CAPABILITY 5. OPERATIONAL FLEXIBILITY 6. STATE OF ART TECHNOLOGY 7. SUMMARY 8. REFFERENCE INTRODUCTION The Airbus A400M Atlas is a multi-national four-engine turboprop military transport aircraft. It was designed by Airbus as tactical with start epic capabilities. The aircraft’s maiden flight‚ originally planned for 2008‚ took place on 11 December 2009 from Seville‚ Spain. A total of 174 A400M aircraft have been ordered
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8:41 AM Page 508 11 “In prior years we found customers somewhat cautious about supporting Airbus. This year it has become acceptable and‚ frankly‚ even stylish to laud Airbus and to chastise Boeing.” –Excerpt from Bear Stearns Analyst Report as reported in Fortune in August 1999 “We are not here to buy market share.” –Noel Forgeard‚ Chairman‚ Airbus Industrie‚ in August 1999 Airbus—From Challenger to Leader BSTR/046 BOEING’S NIGHTMARE In October 2002‚ The Seattle Times‚ a local
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MREJEN Corentin Wednesday‚ October 10 2012 Case Analysis: Airbus in China 1. Identify the key management issues facing Airbus in China. Since 1985‚ cooperation between Airbus and China covers the commercial‚ industry and research sectors. Laurence Barron‚ president of Airbus China since January 2004 is willing to expand this cooperation with Chinese aviation industry. Heading this way‚ a joint venture was launched in September 2008 owned by the European aircraft-maker for 51%‚ with the
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Summary Airbus and Boeing are competitors in the aircraft industry as both of the companies are aircraft manufacturers. Boeing was actually founded in 1916 in Seattle earlier than Airbus and got huge support from US government. It was a dominant player in the global manufacturing industry in the 1960’s together with McDonnell Douglas. Meanwhile Airbus was founded in 1970s by four countries which are France‚ Germany‚ Spain and United Kingdom. These countries have supported Airbus from its establishment
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Subsides were used to aid Boeing gain a first mover advantage into the emerging airline industry. They were given tax grants for R & D spending or money to develop military technology that could be transferred to civilian projects. Airbus‚ on the other hand‚ was able to enter the market through a $13.5 billion subsidy from governments in France‚ Great Britain‚ Germany‚ and Spain. According to a 1992 agreement between EU-US and the WTO "up to 33 per cent of the program cost was to be met through
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Faculty of Commerce Executive MBA Program Strategic Management Boeing bets the company Course Instructor: Dr. Manal ElKordy Prepared By: Marwan Fathy Submitted on: 12/01/13 1. Outsource approximately 70% of manufacturing. Could it find suppliers who could consistently make the high quality parts needed by Boeing? Actually to outsource 70% of the manufacturing process is a very huge % and will result in facing many problems because of less control over the process attached to this high%
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