Presented by Zahid Iqbal ISP Multan. Airbus ... Airline industry analysis

2. ON
AIRBUS

3. ARSLAN MEHMOOD
FAHAD NISAR
FIAZ UR REHMAN
MUBASHIR ABBAS
Zahid Iqbal

5. “For the purpose of strengthening European
co-operation in the field of aviation
technology and thereby promoting
economic and technological progress in
Europe, to take appropriate measures for
the joint development and production of an
airbus.”

6. The Airline Manufacturing Industry has grown
magnificently over the past few decades with the
world traffic developing rapidly from demand.
Even more, the demand for efficient craft
consistent with the implementation of the latest
cutting-edge technology (i.e. Wi-Fi, telecom,
comfort, food and speed) has increased
substantially. Airline companies are more than
ever looking for highly efficient and
environmentally sensitive craft in terms fuel
consumption, gas emissions and noise
abatement

8. The Airline Manufacturing Industry has two
major players which are the US based Boeing
and the European based Airbus. When it comes
to Boeing the aircraft manufacturing arm of its
company has over 20,000 in-service craft
worldwide making it (so far) the undisputed
market leader in aircraft. As for Airbus and its
aircraft manufacturing arm of European
Aeronautic Defense and Space Company
(EADS) has just over 8,000 in-service airliners
world-wide for now. However, over the last
decade, it has been the strongest competitor to
Boeing outplaying it in terms of number of orders
from airline companies (Boeing, 2014)

9. Airbus was officially formed in 1970 as a consortium of
France’s Aerospatiale and Deutsche Airbus, a grouping
of leading German aircraft manufacturing firms, which
is reminiscent of the days of old BMW and Mercedes
when they were building aircraft for the German
military. Together the companies had decided to build
the A300, the first twin-engine wide body airliner, to fill
a gap in the market and to challenge US supremacy in
the aviation industry. Shortly afterwards Spain’s CASA
joined the consortium and in 1974 the “Airbus
Industries GIE (Groupe d’Intérêt Economique)”, as it
was known moved its headquarters from Paris to
Toulouse.UK joined in 1979

10. The Airbus A300 was to be the first aircraft
to be developed, manufactured and
marketed by Airbus. By early 1967 the
"A300" label began to be applied to a
proposed 320 seat, twin engineered
airliner

11. AIRBUS FAMILY

12. AIRCRAFT DISCRIPTION seats maximum
A300 2 ENGINE,
Twin aisle
228-254 361
A310 Modified A300 187 279
A318 2 engine, single aisle, shortened 6.17 m from
A320
107 132
A319 2 engine, single aisle, shortened 3.77 m from
A320
124 156
A320 2 engine, single aisle, 150 180
A321 2 engine, single aisle, lengthened 6.94 m
from A320
185 236
A330 2 engine, twin aisle 246-300 406-440
A340 4 engine, twin aisle 239-380 380-440
A350 2 engine, twin aisle 270-350 550
A380 4 engine. Double deck, twin aisle 555 853

13. Airbus is in tight
competition with Boeing
every year for aircraft
orders although Airbus
has secured over 50% of
aircraft orders in the
decade since 2003.
The following figure
presents the annual
orders for and deliveries
of aircraft produced by
Airbus and Boeing,
respectively.

15. Airbus’ main strategy in terms of product
development is introduction of different
sizes of models in order to get the
advantage in the product range from 100
seats to 500 seats, so as to get a wider
product range.

16. Moreover, the company has maintained the
implementation of the latest cutting-edge technology
in the production of their aircrafts which has been
imperative in attainting highly efficient aircrafts
combined with great safety, comfort and reliability
(Airbus, 2013). Airbus has derived its policy based
on best possible cost efficiency, on-time delivery
and higher than expected quality. With the
specializing partners assigned different production
tasks, this has ensured Airbus to maintain
deliverables deadlines.

18.  Productivity Objective
• To increase productivity by 20% each year.
 Cost Objective
• To reduce operational expenses by 17% by the year 2014, consequently cutting
expenditures by $2 billion each year after that.
 Profitability Objective
• To increase profits by 10% by the year 2014.
 Revenue Objective
• To increase total revenue to €62 billion by the year 2014.
 Market Share Objective
• To increase the Market share by March 2015 to more than 55% thus becoming the
Market leader and surpassing Boeing.
 Savings Objective
• To increase savings to US$ 5bn by the year 2014.
 Customer Goal
• To create a positive image of the Airbus Brand towards its customers.

19. Airbus should concentrate on 4 main
market areas:
Current Markets – Market Penetration /
Product Development
• Airline operators global
• Government Defense Agencies
New Market –Market Development /
Diversification
• Business Conglomerates
• Private Individuals

20. Promoting the Big Dogs
Creating and Serving a new Target Market