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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1. Why is Airbus interested in building the A3XX? What are its objectives? Airbus predicts that there would be demand for more than 1500 super jumbos over the next 20 years that would generate sales in excess of $350 billion. And they could sell as many as 750 over jumbos over the next 20 years with a break even on undiscounted cash flow basis with the sales of only 250 planes. There is a huge profit in this business if Airbus succeeds in the industrial launch of A3XX jumbo jets. In addition‚
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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? In our opinion the subsidies and soft loans provided to Airbus are unfair and provide them with an unfair competitive advantage.
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Airbus A3XX: Developing the World’s Largest Commercial Jet Introduction: From its inception in 1970‚ Airbus has maintained a reputation for innovative design and technology. Airbus has employed a “fly-by-wire” technology on all of its planes as an efficient alternative to computerized control for mechanical linkages. In addition‚ Airbus streamlined operations and features that have lead to better pilot utilization and lower training costs. These advances help explain why Airbus had received over
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1 Marketing Plan Sample Félina FLAM Maxime FONTAINE Anne ULRICH 2 Company profile - AIRBUS • Founded in 1970 • Headquarter in Toulouse • One of the world‘s leading manufacturer of aircrafts • Subsidiary of EADS‚ a European airspace company 1 Marketing Plan - Agenda 1. Strategic analysis 2. Achievable Marketing Objectives for 2010 3. Yearly Action Plan & Marketing Budget 4. Control Procedures & Criteria of Success 2 Marketing Plan - Agenda 1. Strategic analysis 2
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could pose as a strategic opportunity for Airbus which it could utilize to build a competitive advantage combined with its technological resources and capabilities. However‚ its assumptions of a drastic increase in VLAs demanded in next 20 years along with its ability to satisfy most of this are too optimistic. Provided that these assumptions (inc. breakeven points‚ initial order requirements) are normalized‚ A3XX is a project worthy to pursue for Airbus in order to exploit a neglected spot on the
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Airbus A3XX case study Group E10‚ MBA 2011 Airbus A3XX case study‚ Group E10 Airbus objectives Both Airbus and Boeing‚ as well as industry experts expected worldwide passenger traffic to grow at an average annual growth rate of 4.8-4.9% for the next 20 years (up until 2019). Given that the traffic was expected to almost triple in volume‚ both manufacturers expected a significant increase in aircraft sales‚ although their views on the market structure were different. Airbus expected hub-to-hub
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believe that selling diamonds would create a social conflict because a company can run the risk of selling blood diamonds without even knowing‚ even though it can give a great profit to a jewelry company. Blood diamonds or conflict diamonds are “diamonds that come from areas where there is conflict such as violence groups and rebels that are protestors against their government like war zones. These diamonds are obtained in using slaves or slave-people regime. Usually‚ blood diamonds are associated with
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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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The idea of a jumbo airliner being capable of seating over 500 people almost seemed unreal. That is‚ 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.
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