Case Study 39 Airbus vs. Boeing Prepared by Lisa Neumann Matthias Pernkopf Viktoria Scheidl Case study 39 Airbus vs. Boeing Contents: • • • • • History of Airbus History of Boeing Question 1 Question 2 Question 3 History of Airbus •1970: Airbus was formed as European consortium of French and German companies •Spain companies joined the consortium •1979: British Aerospace joined Airbus Industrie. •Each of the four partners operated as national companies •Airbus developed a deserved
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Case Study of Airbus Amy West‚ Kylie Herriman‚ Gerrie Johnson‚ Ruth Littleton OPS/571 November 14‚ 2011 Doug Spunaugle Case Study of Airbus Introduction Airbus was first established as a consortium in 1967 when the French‚ German‚ and British government created a consortium to build European aircrafts. The originating goal was to challenge the American domination in the aerospace industry. They are headquartered in Toulouse‚ France
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Project Economics/ Feasibility The demand for very large aircraft (VLA) which is forecasted to be around 1550 planes including passenger jumbo jets and freight carriers in the next 20 year period provides an opportunity for Airbus to capture this market with its A3XX. The cash flow and commercial viability is analysed below. Discount Rate: 6% + 0.84*6 = 11.04% Growth Rate: 2% = inflation Tax Rate = 38% Year Units Sold Free Cash Flow PV of Cash Flow 2001 0 $ -682.00 $ -682.00 2002 0 $ -1
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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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“Please fasten your seat belt sir.” The voice of the flight steward woke me back from my reverie. After what seemed like thousands of years‚ finally I was taking a long break from my official and marital stress. I just couldn’t stop day dreaming about how perfect my vacation in Hawaii would be! As my flight took off‚ the excitement grew even further to feel the warm‚ sandy beaches sparkling in the sun‚ the sweet smelling pine trees and the luscious aroma of Pena Coladas‚ which would be welcoming me in
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Case 2 4 final - Presentation Transcript 1. Case 2-4: Ethics and Airbus Team 8 Heather Cutshall Chris Duley Rohan Ratnapal Sue Vang 2. Consisted of French‚ German‚ and British Government Signed a Memorandum of Understanding in September 1967 Based in Blagnac‚ France History 3. An aircraft manufacturing subsidiary of the European aerospace company EADS One of the world’s leading manufacturers of commercial jet airliners
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INTRODUCTION Until 1980‚ the American manufacturers in the aerospace industry enjoyed an exclusive control of the aerospace industry despite the entry of the European-based Airbus industry in the late 1960s. The American manufacturers dominated the industry at the time that it was difficult for the European manufacturers to compete‚ but just like all industries resources and capabilities are fundamental building blocks for a firm’s strategy. Some business organizations especially those in the airline
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until Airbus came along. This idea for the jumbo plane started as a joint venture with Boeing‚ but after it started Boeing backed out because of high costs and speculation of demand. Airbus pushed along and in 1999‚ they completed to rough draft of this plane. The problem with this plane that was obvious was first the overall cost of the plane. It was estimated to cost about 13 billion to launch. This included money for research and development‚ property‚ plant‚ and equipment‚ prototype planes and
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competition‚ Airbus‚ was created in 1970 and by 1981‚ was controlled by France‚ Germany‚ Spain and Britain with support from the European Union. Today‚ many issues plague these two companies as they struggle to maintain their market control as regulations become tougher and global competition increases. Starting after World War II‚ European governments have eagerly pursued their public polices by using a system of democratic socialism. Because of this‚ citizens of the European Union have become accustomed
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of these three ways you must decide how you want to go baste on your budget‚ time‚ and the quality of travel you prefer. The fastest way of travel would be by plane. If time is a major issue‚ a flight would be the best mode of transportation for you. A flight can also be easier to schedule‚ there are hundreds of flights leaving every half-hour‚ in every direction from and to almost every airport in the world. Besides being fast and convenient‚ studies have shown it’s also safer. Statistics show
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