Contenu connexe Similaire à The Airbus Program - National Champions, European Project, Global Player (20) Plus de Daniel Stanislaus Martel (20) The Airbus Program - National Champions, European Project, Global Player 1. AIRBUS
From the National Champions and the
European Project to the Global Player
Human Resources and Organization
Prof. Dr. Edgar Bellow
13th March 2012
Reims - France
Dr. Daniel Stanislaus Martel
Lecturer at University of Management, Economics and Finance, Geneva, Dunya Institute of Higher
Education, and AKAD Banking & Finance, Zurich and Berne
Aerospace Journalist & Editor/Consultant
2. 2
AIRBUS?
You said Airbus?
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
Source: Skyward.ch
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
3. 3
AIRBUS?
You said Airbus?
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
Source: Skyward.ch
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
4. 4
AIRBUS?
You said Airbus?
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
Source: Skyward.ch
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
5. What do You Know About Airbus?
Please help
Discuss for five minutes in groups
Nominate a representative
Report to your colleagues in one minute
The floor is yours
5
AIRBUS?
You said Airbus?
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
7. Facts about Airbus
Airbus is…
Number one in civil airframe orders (1419) and delivies (524) in 2012
Known as an economic venture with market share of 64 % in 2012
Considered a prime technology driver
Presented as a European success story with 11.570 orders and 7079 del.
Renown as a Global Player with 6659 aircraft in service
… yours to learn from
7
AIRBUS?
That’s Airbus!
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
8. Agenda
Airbus in it’s world
The world of air transport (demand: operators / supply: airframers)
Aerospace as a strategic industry
The Airbus Case
A changing framework: European integration (optional)
The world around everything: Globalization and Neoliberalism
Looks into the future
Many case studies
8
AIRBUS?
That’s Airbus!
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
9. AIRBUS?
That’s Airbus!
Learning Objectives
After our course, you are able to…
… outline the historical agenda of the Airbus programme
… explain at least three major influences on the Airbus
programme
… apply at least three concepts to your own operations
… it is up to you! 9
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
10. Why is this Important for You?
As a future Reims Management School Graduate, You…
… need to be aware of possible roles of stakeholders in
economics
… need to be aware of the importance of a long term vision
translated into decisions
… need to be aware of the role of technology in economics
… it is up to you!
10
AIRBUS?
That’s Airbus!
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
11. AIRBUS
The World of Air Transport
Demand: Operators / Supply: Airframers
Human Resources and Organization
Prof. Dr. Edgar Bellow
13th March 2012
Reims - France
Dr. Daniel Stanislaus Martel
Lecturer at University of Management, Economics and Finance, Geneva, Dunya Institute of Higher
Education, and AKAD Banking & Finance, Zurich and Berne
Aerospace Journalist & Editor/Consultant
12. The World of Air Transport
Three clusters of actors
Aircraft operators in demand for airframes
Airports / ground facilities which serve aircraft operators
Airframe constructors which supply airframes
Perfectly complementary… and highly regarded / regulated
12
AIRBUS
The World of Air Transport
Demand: Operators / Supply: Airframers
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
13. AIRBUS
The World of Air Transport
Demand: Operators / Supply: Airframers
Aircraft Operators (1)
An industry set for growth (source IATA)
Annual USD 425 billion turnover (2010)
5.5 million direct jobs, adding up to 33 millions (2010)
Some 2.5 billion customers (2010)
Relevant for everybody
© Dr. Daniel Stanislaus Martel Human Resources and Organization
13
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
14. AIRBUS
The World of Air Transport
Demand: Operators / Supply: Airframers
Aircraft Operators (2)
A highly fragile industry with high risk operations
Pressure on margins and cost at any step
Highly know how, and experience sensitive
High political exposure, positive and negative (ecologism)
Vulnerable to externalities (recession, fuel price…)
Gigants on argyle feet
© Dr. Daniel Stanislaus Martel Human Resources and Organization
14
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
15. AIRBUS
The World of Air Transport
Demand: Operators / Supply: Airframers
Airports / Ground Facilities
Interface air transport
Technical/functional monopoly at served destination
Next to perfect competition for transfer / transit passengers
Facilitator / focus of local economic development
Entry / exit door for national economy
Essential for the country
© Dr. Daniel Stanislaus Martel Human Resources and Organization
15
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
16. AIRBUS
The World of Air Transport
Demand: Operators / Supply: Airframers
Airframe manufacturers (1)
Economic actors supplying the hardware
High value adding industry attracting the best brains
High cost for R & D and overheads
High drive for innovation in a prospective perspective
High concentration owing to competition
Essential for the country
© Dr. Daniel Stanislaus Martel Human Resources and Organization
16
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
17. AIRBUS
The World of Air Transport
Demand: Operators / Supply: Airframers
Airframe manufacturers (2)
Their product: airframes
Numerous physical, mathematical, functional constraints
Maximum drive for economic efficiency
Maximum need for Risk Management at any level
Very little space for product differentiation
© Dr. Daniel Stanislaus Martel Human Resources and Organization
17
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
18. AIRBUS
The World of Air Transport
Demand: Operators / Supply: Airframers
Airframe manufacturers (3)
Fundamentals of airframes
Product life cycles of 20 to 40 years (second hand market)
High degree of technological and contractual lock-ins
Sensitive to « correct » timing of market entry
Each programme is high risk owing to competitor’s life cycle
A high risk business!
© Dr. Daniel Stanislaus Martel Human Resources and Organization
18
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
19. AIRBUS
The World of Air Transport
Demand: Operators / Supply: Airframers
Airframe manufacturers (4)
Technology drive behind airframes
Attempt to « leapfrog » competitor
Attempt to override locked-in competitors
Race for early commitments
High degree of customer lock-in (change of supplier)
A high stake business
© Dr. Daniel Stanislaus Martel Human Resources and Organization
19
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
20. AIRBUS
The World of Air Transport
Demand: Operators / Supply: Airframers
Airframe manufacturers (5)
New products…
Anticipate market need and foreseeable competitor’s reactions
Use currently available technologies
Always major compromises in technology and functionality
Focused on as many customers as possible
… always have a wider economic, technological, social context
© Dr. Daniel Stanislaus Martel Human Resources and Organization
20
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
21. AIRBUS
The World of Air Transport
Demand: Operators / Supply: Airframers
Airframe manufacturers (6)
Launch of new airframes
Gain of productivity for current and future customers
Maximize difficulties for competitors to catch up
Maximize barriers for market entry for new competitor
Response to expected tomorrows
© Dr. Daniel Stanislaus Martel Human Resources and Organization
21
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
22. AIRBUS
The World of Air Transport
Demand: Operators / Supply: Airframers
Airframe manufacturers (7)
Strategic partnership with operators
Complex financial operations
Standalone airframe or first member of aircraft family
Stepstone to further aircraft models
Look into the future every day
© Dr. Daniel Stanislaus Martel Human Resources and Organization
22
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
23. AIRBUS
The World of Air Transport
Demand: Operators / Supply: Airframers
Classroom Incubation 1
What government policies are adequate for air transport
Conceptualize such a policy in groups for 10 minutes
Elaborate a global national air transport policy
Nominate a group representative
Share your findings with your colleagues
Build your own air transport future
© Dr. Daniel Stanislaus Martel Human Resources and Organization
23
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
25. AIRBUS
Aerospace as a
Strategic Industry
Human Resources and Organization
Prof. Dr. Edgar Bellow
13th March 2012
Reims - France
Dr. Daniel Stanislaus Martel
Lecturer at University of Management, Economics and Finance, Geneva, Dunya Institute of Higher
Education, and AKAD Banking & Finance, Zurich and Berne
Aerospace Journalist & Editor/Consultant
26. AIRBUS
Aerospace as a
Strategic Industry
What is Industry?
Industry is a value-adding economic activity
Supply of physical goods
Contributing to local development
Strengthening national economy
Raising standard of living of producers and customers
© Dr. Daniel Stanislaus Martel Human Resources and Organization
26
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
27. AIRBUS
Aerospace as a
Strategic Industry
Attitudes of Industrial Actors
Best possible factor allocation
Providing responses to felt and anticipated needs
Drive to outpace competition
Making best possible use of factors of production
Inventions and expected innovation processes
© Dr. Daniel Stanislaus Martel Human Resources and Organization
27
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
28. AIRBUS
Aerospace as a
Strategic Industry
The Product Cycle
Integration into society
© Dr. Daniel Stanislaus Martel Human Resources and Organization
28
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
Market penetration
Invention of
product or
service
Approval by
decision
makers
Convince
pioneers
Advantages
felt by others
Invention
generalizes
in market
Invention
becomes part
of society
Response to
a need felt
Win
promotors
for the
«cause»
Target
customers
sharing the
same need
as the
inventors
Solution
responds to
or exceeds
expectations
Solution
offers real
gain in
productivity
Solution
leads to new
attitudes
Author based on Alter (2002), 15-40
29. AIRBUS
Aerospace as a
Strategic Industry
The Two Types of Innovation
Proactive invention and reactive learning by experience
Voluntary innovation: ambition to optimize
Involuntary innovation: attempt to correct failure
In both cases: accepted or rejected by society
In any case there are multiple changes
© Dr. Daniel Stanislaus Martel Human Resources and Organization
29
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
30. AIRBUS
Aerospace as a
Strategic Industry
The State in the Economy
Management of territory under its jurisdiction
Formal institutions governing population and activities
Elites try to optimize situation for re-election
Elites promote their interest within and outside state
Role of state has not ended with globalization
© Dr. Daniel Stanislaus Martel Human Resources and Organization
30
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
31. AIRBUS
Aerospace as a
Strategic Industry
The Two Level Game (Putnam)
National Territory International System
Supreme Authority Legal entity/actor
© Dr. Daniel Stanislaus Martel Human Resources and Organization
31
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
Author based on Putnam (1993), 431-468
GOVERNMENT
National policies, among them
economic policies including
application of international
agreements, compliance with
international regimes…
Objective: Optimize national
territory as a production site
International relations through
diplomacy, international
governmental organizations
(WTO), trade agreements,
regional integration (EU)…
Objective: Maximize trade-offs
for national economy
32. AIRBUS
Aerospace as a
Strategic Industry
Strategic Industries
Crucial for state and economy as a whole
Worldwide demand (pharmaceuticals, energy systems…)
Unsubstituable, therefore inelastic demand
Complex and specialized know-how intensive processes
Necessary for economy (energy) and state (security)
Strategic suppliers are in a situation of monopoly
© Dr. Daniel Stanislaus Martel Human Resources and Organization
32
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
33. AIRBUS
Aerospace as a
Strategic Industry
Sensitivity and Vulnernability (Keohane and Nye)
Other Country National Territory
Other Country
G O V
Economic
Policies
Economic
Policies
Economic
Policies
© Dr. Daniel Stanislaus Martel Human Resources and Organization
33
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
Author based on Keohane and Nye (1989)
G O V
E C O
G O V
E C O E C O
34. AIRBUS
Aerospace as a
Strategic Industry
Strategic Trade Policies (Krugman)
Prevent vulnerabilities – lower sensitivities
Policies target already strong strategic industries
Mixture of national economic and technology policies
Mixture of international initiatives in favour of national industries
Related policies (higher education, research, immigration)
Not to be confused with classical protectionism
© Dr. Daniel Stanislaus Martel Human Resources and Organization
34
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
35. AIRBUS
Aerospace as a
Strategic Industry
The Technology Leap (Mokyr)
© Dr. Daniel Stanislaus Martel Human Resources and Organization
35
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
Author based on Krugman (Mokyr (1993), 431-468
36. AIRBUS
Aerospace as a
Strategic Industry
The Challenge: Path Dependence (Krugman)
Heritage, present and future of a production site
Site configuration result of all past decision’s outcomes
Each decision cost-benefit based on site configuration at its time
Strengths depend on commitments by decision makers
The stronger Path Dependence, the higher lock-in
Chance or risk
© Dr. Daniel Stanislaus Martel Human Resources and Organization
36
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
37. AIRBUS
Aerospace as a
Strategic Industry
The Chance: The Technology Leap (Mokyr)
Revolutionary invention leading to fundamental change
Innovation creates a disruption (plastics, mobile phone…)
Opportunity to establish new Micro- / Macro-Path Dependences
Strategic Trade Policies seize opportunities (Silicon Valley)
High Risk versus High Reward (Question Mark in BCG Portfolio)
Breaking the lock-in
© Dr. Daniel Stanislaus Martel Human Resources and Organization
37
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
38. AIRBUS
Aerospace as a
Strategic Industry
STP and P.D. in Practice: Site Optimization
Past, present and future focus on Strategic Industries
Close cooperation between all involved actors
National policies focused on R & D, S & T, higher
education…
International policies targeted at maximized trade offs
Objective: strenghten Strategic Industries
© Dr. Daniel Stanislaus Martel Human Resources and Organization
38
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
39. AIRBUS
Aerospace as a
Strategic Industry
Site Optimization (Keohane and Nye)
Other Country National Territory
Other Country
G O V
Economic
Policies
E C O
G O V
Economic
Policies
Author based on Keohane and Nye (1989), Krugman (1996), Krugman (1994)
Economic
Policies
© Dr. Daniel Stanislaus Martel Human Resources and Organization
39
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
G O V
E C O E C O
40. AIRBUS
Aerospace as a
Strategic Industry
The International Product Life Cycle (Vernon)
© Dr. Daniel Stanislaus Martel Human Resources and Organization
40
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
Author based on www.provenmodels.com
Time
Benefits
Exports / Influence
Losses /Invest
Imports / R & D
New Prod Mature Product Standardized Product
Competing
similar country
Inventor’s country
Technologically leading country
Emerging
country
Technological
emancipation
Rising cost of
production
41. AIRBUS
The World of Air Transport
Demand: Operators / Supply: Airframers
Classroom Incubation 2
What do you think about Site Optimization
Discuss one sector per group for 10 minutes
Elaborate a coherent Site Optimization policy or decide against
Nominate a group representative
Share your findings with your colleagues
Be your own site optimizer
© Dr. Daniel Stanislaus Martel Human Resources and Organization
41
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
43. AIRBUS
The Airbus
Case
Human Resources and Organization
Prof. Dr. Edgar Bellow
13th March 2012
Reims - France
Dr. Daniel Stanislaus Martel
Lecturer at University of Management, Economics and Finance, Geneva, Dunya Institute of Higher
Education, and AKAD Banking & Finance, Zurich and Berne
Aerospace Journalist & Editor/Consultant
44. Stages of Airbus History
A long, international history from the beginning
1920 – 1965: Setting the stage
1965 – 1970: The National Champions
1970 – 1986: The dedicated entrepreneurs
1986 – 1992: The audacious innovators
1992 – 2001: The visionary strategists
2001 – 2006: The scared money makers
2004 – 2012: The new hard workers
What does this mean?
44
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
45. 1920 – 1965: Setting the Stage (1)
Europe: Site Optimizations for Strategic Industries
Europe until 1939: Airframers are national programmes
After 1945: Competition between France and United Kingdom continued
1949: United Kingdom delivers first jet aircraft Comet 1 which fails owing
to overstretched technology leaps
1955: France launches Caravelle jet which fails on the market
Technology is not everything
45
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
46. 1920 – 1965: Setting the Stage (2)
United States: Free enterprise
United States until 1939: Airframers are private corporations
After 1945: Eased market entry through mass production and Marshall
Plan
1958: Monopolies through large quadrijets Boeing 707 and Douglas DC-8
1964: First of a series of smaller jets Boeing 727 to swamp the world
market
Market strategy is everything
46
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
47. 1920 – 1965: Setting the Stage (3)
World air transport: towards unlimited growth
1965: Boeing announces quantum leap with Boeing 747 Jumbo Jet widebody
1966 - 1967: Lockheed and McDonnell-Douglas announce smaller
widebodies Tristar and DC-10
Common characteristics (two aisles, containerized cargo) leading to
technological disruption (technology leap)
Revolution in air transport announced for 1970 - 1972
Market strategy is everything
47
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
48. 1920 – 1965: Setting the Stage (4)
Europe: Cooperation to protect strategic industry of aerospace
1959: France / West Germany: State treaty for the Transall transporter
1962: Industrial cooperation Netherlands, U.K., West Germany for the
Fokker F-28
1965: Industrial and commercial cooperation West Germany, U.K.,
Netherlands for the VFW-614
All programmes remain marginal in the world market
New idea: enable economies of scale
48
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
49. 1920 – 1965: Setting the Stage (5)
The political breakthrough: the Concorde
1962: State treaty between France and the U.K. for supersonic aircraft
French motivations: Additional resources for national leadership programme
U.K. motivations: Maintain strategic industry, obtaining adhesion to EEC
despite Charles de Gaulle’s veto
National motivations around common denominator
1969: Maiden flight, 1975 commercial service, 2006 withdrawn from use
Concorde: masterpiece of technology, commercial disaster
49
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
50. 1920 – 1965: Setting the Stage
Analysis
Lacking economies of scale put European airframers at
disadvantage despite technological superiority
Transnational programmes as new way to sustain national
Strategic Trade Policies
U.S. dominate world market through mass production
The American Challenge / Le défi américain
50
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
51. 1965 – 1970: The National Champions (1)
The wake up call
1965: Colloquium of London on future of airframing in Europe
Window of opportunity following new category of widebody aircraft
Only chance: transnational cooperation for economies of scale
20th July 1967: Governmental treaty between France, Western
Germany and the U.K. on the Airbus A300
Defend national aerospace through transnational cooperation
51
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
52. 1965 – 1970: The National Champions (2)
National Strategic Trade Policies
France: new large-scale national high tech project
United Kingdom: preserve remaining Strategic Industries
West Germany: Opportunity to show European commitment
and to relaunch aerospace industry
Common denominators – different orientations
52
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
53. 1965 – 1970: The National Champions (3)
Common denominator remains minimal
March 1969: U.K. withdraws from state treaty while remaining a subcontractor
29th May 1969: State treaty between France and West Germany launching the
multinational Airbus programme
18th December 1970: Groupement d’intérêt économique (GIE) Airbus established for
programme coordination
Partners of GIE Airbus: French Aérospatiale 46,7 %, Deutsche Airbus 46,7 %, West
Germany/Netherlands VFW-Fokker 4,2 %, joined by Spanish CASA 4.2 %
European Investment Bank grants launch aids ; financing and manufacturing remains
the full responsibility of the partners
Increased economies of scale
53
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
54. 1965 – 1970: The National Champions (4)
Maximized opportunities
Aircraft A300 widebody complementary to U.S. competitors
Aircraft compatible with other widebodies being marketed, thus joining
a new category of aircraft
Proven technologies in new combinations
National facilities specialized in one component, integration in Toulouse
Airbus enables to join the U.S. competitors
54
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
55. AIRBUS
Aerospace as a
Strategic Industry
The Transnational Airbus System
© Dr. Daniel Stanislaus Martel Human Resources and Organization
55
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
Source: Kracht (1994), p.56
56. 1965 - 1970: The National Champions
Analysis
Focus on coming technology leap as the last chance for national
aerospace industries
Complementary product for same market
Economies of scale through specialization of facilities
Transition of the U.S. competitors exploited
56
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
57. 1970 - 1986: The Dedicated Entrepreneurs (1)
Modest beginnings
9th November 1971: First firm order by Air France for 6
28th October 1972: Maiden flight of the A300, 33 days before
contractual date
Performance and cost of operation exceeded expectations
Sales very difficult owing to lack of trust and experience
Supported by pioneers and early adopters
57
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
58. 1970 - 1986: The Dedicated Entrepreneurs (2)
Chances, threats and renewed chances
Main chance: Complementary to U.S. widebodies
1974 – 1975: Recession, not one sale
Tensions between France and West Germany regarding action
After 1975: Argument of low fuel consumption decisive
Stakeholders believe in project
58
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
59. 1970 - 1986: The Dedicated Entrepreneurs (3)
Airbus becomes a political issue
1975: EEC Commissioner Altiero Spinelli suggests European
aerospace policy
1976: Professionals within GIE structure launch prospective studies
for complementary Airbus aircraft
1977: France prefers narrowbody for 150 pax, Germany a shorter
widebody for 220
Airbus becomes a landmark
59
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
60. 1970 - 1986: The Dedicated Entrepreneurs (4)
Airbus grows mature
1978: Launch of smaller A310 decided by partners
1978: Order of 23 A300 by U.S. operator enables international breakthrough
Immediate protective action (import tax) by the U.S. government
Mandate by EEC Council of foreign ministers to EEC Commissioner for
Industrial Affairs Etienne Davignon to obtain cancellation of tax, failure
1979: international Aircraft Agreement within GATT framework
Airbus becomes a global issue
60
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
61. 1970 - 1986: The Dedicated Entrepreneurs (5)
Airbus grows into a risk for U.S. competitors
1978: Boeing launches the B767 competitor to the A310
A310 maximises technology leaps (IT, CRT screens, manufacturing…)
September 1981: maiden flight of B767, 3rd April 1982 of A310
Both aircraft superior in different areas and representing two
different mission profiles
Airbus changes competitor’s behaviour
61
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
62. 1970 - 1986: The Dedicated Entrepreneurs (6)
New Airbus success despite U.S. Strategic Trade Policy favouring Boeing
1983: longer-range A310-300 launched, 9th June 1983: Updated A300, A300-
600 maiden flight
2nd May 1984: Launch of A320 narrowbody for 150 passengers
Technology leaps and disruptions maximized
1985: New U.S. safety regulation allows transatlantic twin operations (ETOPS)
Boeing 767 with longer range favoured (financial instead of safety aspects)
Airbus takes the technology leadership
62
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
63. 1970 - 1986: The Dedicated Entrepreneurs (7)
In the meantime in the U.S. … Neoliberalism emerges
New economic paradigm emerges (Reagonomics, Thatcherism)
Focus on financial and no longer technological performance
Expenditure cutting at any price, including long-term R & D
Boeing adopts this paradigm under new management in 1985
All prospective programmes ended with exception of B777 widebody
Airbus takes the technology leadership
63
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
64. 1970 - 1986: The Dedicated Entrepreneurs
Analysis
Difficulties to penetrate market since few early adopters
Programme portfolio aligned on future market needs
Despite opposed interests, governments find consensus
Focus on technological superiority
64
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
65. 1986 - 1992: The Audacious Innovators (1)
New attacks and successes
1986: U.S. claim Airbus subsidies violate 1979 Aircraft Agreement
1987: EEC Commissioner for Trade, Willy de Clerq, defends the Airbus
programme
Transatlantic tensions, EEC claiming U.S. subsidies through military
programmes
26th February 1988: Joint A320 certification by Dutch, French, West German
and U.K. national certification bodies, world premiere
Attacks through technology and replies through politics
65
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
66. 1986 - 1992: The Audacious Innovators (2)
Steps to future successes
5th July 1987: Launch of A330 (2 engines) and A340 (four)
Maximized micro-Path Dependence (both aircraft 94 % compatible)
Maximized technology leaps for both
Airbus « Family Concept » through commonality (Cross Crew Qualification)
Both aircraft launched through reimbursable aids from member states
Long-term attack on U.S. competition
66
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
67. 1986 - 1992: The Audacious Innovators (3)
Airbus grows European
March 1988: European Parliament discusses Airbus
November 1989: launch of longer A321 narrowbody without subsidies
New production facility in Hamburg to complete Toulouse
7th October 1991: Roll-out of A340 quadrijet with European anthem
7th November 1992: Roll-out of A330 twinjet
Long-term attack on U.S. competition
67
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
68. 1986 - 1992: The Audacious Innovators (4)
The battle of the reports
September 1990: Gellman report compiled for U.S. Department of Commerce
Over 19 years, Airbus has received subsidies for USD 19 billion
No Airbus programme is economically viable
November 1991: Arnold & Porter report compiled for Airbus Industrie
Disproves Gellman report, U.S. manufacturers not commercial enterprises
From 1976-1990 (14 years) USD 15.24 billion through military and NASA research
It seems a matter of interpretation
68
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
69. 1986 - 1992: The Audacious Innovators (5)
The 1992 EEC – U.S. Airbus Accord (1)
Agreement negotiated between Brussels and Washington
Mutual exchange of financial statements to competent authority of other
signatory entity (GIE Airbus member states for Boeing, U.S. government
for Airbus)
Clause of exception: Saving a manufacturer from bankruptcy allowed
Clause of limitation: Financial support to new programmes not allowed
Again, a matter of interpretation and cheating
69
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
70. 1986 - 1992: The Audacious Innovators (6)
The 1992 EEC – U.S. Airbus Accord (2)
Both sides make concessions on subsidies
Europe – Airbus: Limitation of public launch aids to 33 % of global budget
of programme; official current interest rate on first 25 % of global amount;
interest rate raised by 1 % on remaining 75 %, integral reimbursement by
Airbus in 17 years maximum
U.S. – Boeing / McDonnell-Douglas: Limitation of indirect subsidies such as
military and scientific programmes (NASA) to 4 % of global turnover of
targeted manufacturer
Again, a matter of cheating and interpretation
70
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
71. 1986 - 1992: The Audacious Innovators
Analysis
Pro-active attitude sets foundations for the future through
systematic extension of portfolio
Competition gets nervous and obtains governmental
support
All involved parties have no interest to escalate the conflict
Focus on technological superiority
71
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
72. 1992 - 2001: The Visionary Strategists (1)
New Airbus successes despite threat
March 1993: Maiden flight of A321 narrowbody
May 1993: Launch of smaller version of A320 for 130 passengers named A319
Assembled in Hamburg-Finkenwerder
June 1994: Boeing 777 Triple Seven twinjet maiden flight
U.S. ETOPS regulation extended to transpacific routes, leading to loss of
comparative advantage of A340 qudrijet
U.S. Strategic Trade Policies in favour of own manufacturer
72
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
73. 1992 - 2001: The Visionary Strategists (2)
Airbus replies to threats
November 1995: launch of smaller A330-200 derivative
August 1996: Maiden flight, performance exceeds expectations
Boeing replies with inferior B767-400 derivative
Airbus outwits Boeing locked-in on the B777
Both A330 models become the reference in their category
73
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
74. 1992 - 2001: The Visionary Strategists (3)
1996: Beginning of global duopoly
15th December 1996: Boeing purchases McDonnell-Douglas
30th June 1997: European Commission accepts merger under
conditions (civil activities of MDC kept independent for 10 years;
annual report of civil activities to European Commission (97/816/EC)
1997: During French-German summit, decision to transform Airbus
into full corporation
Boeing and Airbus switch to neoliberalism and privatization
74
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
75. 1992 - 2001: The Visionary Strategists (4)
Airbus reacts to intensified competition
December 1997: Boeing 777 Triple Seven countered by A340-600, larger
derivative, and A340-500, quadrijet with longest range ever (18.000 km)
1999: Airbus Military subsidiary for military transporter A400M launched
NATO members Belgium, France, Germany, Italy, Spain, Turkey and U.K.
order 180 for delivery after 2009; South Africa and Malaysia another 12
April 1999: Launch of A318 for 100 passengers without launch aids
Airbus consolidated technology leadership
75
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
76. 1992 - 2001: The Visionary Strategists (5)
The road to Airbus, Inc.
1999: Widespread discussion about Airbus as a private company
June 1999: French-German government preliminary agreement to
establish European Defence and Space Company (EADS)
U.K. partner British Aerospace rejects integration
14th October 1999: Aérospatiale-Matra and Deutsche Aerospace (DASA),
the Airbus partners of the time, merge into EADS
EADS remains a political issue
76
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
77. 1992 - 2001: The Visionary Strategists (6)
European Defence and Space Company (EADS)
Negotiated by parent companies of Airbus partners Largadère (Aérospatiale-
Matra since 1998) and DaimlerChrysler (Deutsche Aerospace/DASA)
Largadère and DaimlerChrysler hold each 30 % of EADS (total 60 %)
Small corporate headquarters in the Netherlands for fiscal reasons
Two equivalent headquarters in Paris (strategic management) and Munich
(operational management)
EADS becomes number two aerospace company after Boeing worldwide
77
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
78. 1992 - 2001: The Visionary Strategists (7)
Airbus Integrated Company
Established 23rd June 2000 as a subsidiary of EADS
80 % held by EADS; 20 % by British Aerospace (BAE)
EADS obliged to buy back BAE share at any time after 2003 (put
option)
Production facilities, procedures and processes unchanged
Airbus followed the wave of privatizations
78
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
79. 1992 - 2001: The Visionary Strategists (8)
Renewed vigor of Airbus
Summer 2000: The very large A380 attracts 95 initial orders
Airbus governments respect the Airbus Accord of 1992 and grand launch aids of
USD 2.5 billion out of estimated USD 10.7 billion
U.S. government announces a World Trade Organization (WTO) complaint
April 2001: A340-600 maiden flight, February 2001: A340-500 maiden flight
January 2002: A318 maiden flight
Airbus followed the wave of privatizations
79
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
80. 1992 - 2001: The Visionary Strategists
Analysis
Victory of Airbus over one competitor (McDonnell-Douglas)
thanks to aircraft family concept
Boeing remains successful despite lower commitment for its
future owing to lower prices and existing customer base
EEC substitutes itself for the individual member states in Strategic
Trade Policy formulation and implementation
Focus on technological superiority
80
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
81. 2001 - 2006: The Scared Money Cumulators (1)
The shock of the decade: Nine Eleven
Air transport hurt everywhere (recession and security procedures)
Boeing lays off 30.000 workers
Airbus reacts in a shortsighted way… und cuts prospective R & D
expenditure
A380 complexity exceeds expectations by far
New Airbus attitude: short term focus
81
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
82. 2001 - 2006: The Scared Money Cumulators (2)
The situation of Boeing
Boeing 737 narrowbody outdated but cheaper than A320 series
Boeing 767 outperformed by A330-300 and A330-200
Boeing 747 Jumbo Jet challenged by A380
B777 Triple Seven with two engines outperforms A340 with four
following U.S. Strategic Trade Policies in its favour (ETOPS)
Airbus remained confident in its Path Dependence
82
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
83. 2001 - 2006: The Scared Money Cumulators (3)
Boeing returns
New management ends short-term financial priorities and seizes « last
chance for successful turnaround »
Boeing analyses potential for superiority over A330 and A340
Disruptive new aircraft B787 Dreamliner
Boeing maximizes technology leaps and disruptions (composites, comfort…)
Boeing copies decentralized Airbus system but outsources core competences
Airbus downplays the risk
83
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
84. 2001 - 2006: The Scared Money Cumulators (4)
Airbus imitates Boeing
2002: Airbus sets up engineering centre in Wichita/USA
2003: Airbus sets up engineering joint venture in Russia
2003: Airbus officially not worried about new bestselling competitor
September 2004: Airbus announces an optimized A330-300 as a reply
Airbus widely criticised for loss of strategic vision
Airbus management replies that customers are satisfied with A330 series
Airbus gets inert
84
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
85. 2001 - 2006: The Scared Money Cumulators (5)
2005: the tide turns
15th February: B777-200LR roll-out, range similar to A340-500 but lower cost of
operation… enabled by further U.S. ETOPS regulation for twinjets
18th February: Reveal of A380 and announcement of three months delay
April: A380 and A350 launch aids incompatible with WTO for U.S.
27th April: A380 maiden flight with worldwide maximum coverage
May: new A380 delays announced
Airbus weakened – Boeing boosted
85
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
86. 2001 - 2006: The Scared Money Cumulators (6)
Airbus in difficulties
6th October 2005: formal launch of A350 with 140 orders against 174 for the B787
November 2005: Boeing launches new B747-8 update which wins substantial orders
December 2005: Airbus sets up engineering facility in China
29th March 2006: International Society of Transport Aircraft Trading bashes the A350
April 2006: BAE sells its stake in Airbus – EADS is obliged to divert funds for it
July 2006: Scandal with alleged insider deals braks Airbus leadership
Airbus weakened – Boeing boosted
86
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
87. 2001 - 2006: The Scared Money Cumulators
Analysis
Airbus copied Boeing’s short-term focus – and pays the price
in full
Boeing wins back a long-term operational and strategic
vision
Revolutionary A380 affected by management problems
Focus on technological superiority
87
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
88. 2006 - 2012: The New Hard Workers (1)
Turnaround in sight?
17th July 2006: New A350XWB design presented at Farnborough
Airshow
Wider fuselage than B787 and earlier Airbus widebodies
First reactions not too enthusiastic
Widespread scepticism whether Airbus is able to launch programme
Can Airbus recover?
88
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
89. 2006 - 2012: The New Hard Workers (2)
Turnaround in sight?
4th September 2006: A380 test passengers enthusiastic
11th September 2006: Russian stake of 5.02 % in EADS
3rd October 2006: another 10 months delay for the A380 announced
10th October 2006: Christian Streiff, CEO of Airbus Integrated Company
resigns
7th November 2006: Fedex order for ten A380 freighters cancelled
Can Airbus rise up again?
89
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
90. 2006 - 2012: The New Hard Workers (3)
New worries or new opportunities
10th December 2006: launch of yet reworked A350XWB (materials…)
Market entry pushted back to 2013, 5 years behind B787 Dreamliner
Budget of at least USD 15 billion, making subsidies unavoidable
Main design freeze pushed back to 2008 to learn from the B787
12th December 2006: A380 certified by EU and U.S. agencies
The question remains open
90
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
91. 2006 - 2012: The New Hard Workers (4)
New worries or new opportunities
January 2007: Boeing outsold Airbus for the first time in 5 years with 1044 against 790 net
orders
10th January 2007: U.S. open a WTO case on subsidies to Airbus
9th February 2007: the EU files a WTO claim on indirect subsidies to Boeing
May 2007: the new joint Airbus/AVIC A320 plant in Tianjin/China is opened
Summer 2007: Airbus sets up engineering facility in Mobile/Alabama for the A350XWB
15th October 2007: first A380 delivered to Singapore Airlines
The question remains open
91
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
92. 2006 - 2012: The New Hard Workers (5)
Will it never end?
28th February 2007: EADS Power 8 restructuration programme
launched
4300 jobs cut in France, 3700 in Germany, 1600 in U.K., 400 in Spain
Summer 2007: Airbus is hit by the weak US Dollar
A350XWB to be assembled in Toulouse
Still, the question remains open
92
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
93. 2006 - 2012: The New Hard Workers (6)
Towards a new beginning?
2009: Research on « Sharklet » wing extension for the narrowbodies launched
2010: Major narrowbody update rumoured
April 2010: A330-200 Freighter certified
Summer 2010: Airbus launches the Terminal Aerosave initiative for dismantling
aircraft at the end of their life cycle
December 2010: Airbus A320 New Engine Option (NEO) combining sharklets, new
engines and other optimizations launched for 2015
Still, the question remains open
93
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
94. 2006 - 2012: The New Hard Workers (7)
Diversification into military activities
2009: Roll out of the A400M
2009: Multi Role Transport & Tanker (MRTT) becomes new standard
in aerorefueling
2009: EADS / Martin/Marietta wins Pentagon contract over 179
tankers
After Boeing claim, final contract awarded to Boeing in 2010
Aerospace remains a political issue
94
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
95. 2006 - 2012: The New Hard Workers (8)
In the meantime…
Boeing runs into difficulties with the B787 « Delayedliner »
Lack of know how for complex project after decade-long cuts
Delay over delay... budget overruns of several billions
Airbus A350XWB runs into difficulties as well and gets delayed
Customers still criticise Airbus for not having « pushed the envelope » far enough
Meanwhile… composites are targeted for their long-term environmental damage
Are composites the quantum leap too much?
95
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
96. 2006 - 2012: The New Hard Workers (9)
Outcomes
January 2011: 10.000th order (an A320 NEO)
June 2011: 667 gross orders for the A320 NEO at the Aérosalon de Paris
representing USD 60.9 billion
July 2011: Sharklet devices tested for the first time
15th July: Lufthansa opens first experimental Airbus A320 biofuels service
2012: Beoing responds A320 NEO with B737 MAX
A new stalemate
96
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
97. 2006 - 2012: The New Hard Workers (11)
Current situation
A320 NEO: The fastest selling aircraft programme in history
A330 twinjet: Continues to sell very well – major update for late 2012 rumoured
A340 quadrijet: End of production cycle earlier than expected
A380: sells slowly but permanently
A400M still plagued by problems
A330 MRTT remains niche product
New opportunities or old chances
97
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
98. 2006 - 2012: The Hard Workers
Analysis
Airbus slowly recovers but remains affected
Boeing underestimated complexities with B787
Airbus remains trapped in cost saving… and finds
partially back to long term prospecting
Focus on technological superiority partially redeployed
98
AIRBUS
The Airbus
Case
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
99. AIRBUS
The World of Air Transport
Demand: Operators / Supply: Airframers
Classroom Incubation 3
What can corporations learn from Airbus
Discuss one type of corporation in groups for 10 minutes
Elaborate a coherent Site Optimization policy or decide against
Nominate a group representative
Share your findings with your colleagues
Be your own site optimizer
© Dr. Daniel Stanislaus Martel Human Resources and Organization
99
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
101. AIRBUS
A Changing Framework:
European Integration
Human Resources and Organization
Prof. Dr. Edgar Bellow
13th March 2012
Reims - France
Dr. Daniel Stanislaus Martel
Lecturer at University of Management, Economics and Finance, Geneva, Dunya Institute of Higher
Education, and AKAD Banking & Finance, Zurich and Berne
Aerospace Journalist & Editor/Consultant
102. AIRBUS
A Changing Framework:
European Integration
Basics of territorial / geographical convergence
Economies of scale
Static gains owing to increased factor allocation
Dynamic gains owing to increased resource availability
Collateral gains such as leverage in negociations
Personal gains such as prestige
… yours to learn from 102
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
103. The Road to the European Union
Economic integration first, political convergence second
1948: Organization for European Economic Cooperation (OEEC) for Marshall Plan
1949: Council of Europe for scientific and political resource pooling
1950: Association of European Aircraft Manufacturers established
1951: European Coal and Steel Community (ECSC) to « denationalize » strategic
industries
1955: European Civil Aviation Conference (ECAC)
Common challenges in several key fields
103
AIRBUS
A Changing Framework:
European Integration
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
104. The Road to European Institutions
The European Communities
1957: European Economic Communities (EEC)
1959: European Investment Bank (EIB)
1960: Eurocontrol for transeuropean air traffic control
1962: EEC becomes supranational in agriculture
1965: European Commission establishes the Politique de recherche scientifique et technique
(PREST)
1966: EEC negociates the GATT Kennedy Round in its own right
From association to delegation
104
AIRBUS
A Changing Framework:
European Integration
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
105. The Road to European Policies
A new international actor emerges
1972: EEC and EFTA establish Committee on Scientific and Technological Cooperation
(COST)
1972: Joint Aviation Authorities (JAA) for parallel aerospace and air transport
certification
1974: EEC obtains UN Observer status
1974: The EEC contributes to the European Science Foundation (ESF)
1975: The Directorate General XII Research carries out the « Europe + 30 » research to
to predict the future of Science & Technology in Europe
From delegation to adoption
105
AIRBUS
A Changing Framework:
European Integration
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
106. The Road to European Politics
A new international authority readies itself
1978: Common monetary policy
1979: First direct election of European Parliament
1980: Council Directive 80/1266 rules Air Accident Investigation
1984: First Framework Programme for scientific research
1985: French President Mitterrand launches the Eurêka technology initiative
From adoption to integration
106
AIRBUS
A Changing Framework:
European Integration
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
107. The Road to European Visions
A new international actor enters the scene
1985: White Paper on Single European Market by 1992
1986: Single European Act aligns national foreign policies
1987: European Airworthiness Authorities standardize air operations
1990: Joint Aviation Authorities (JAA) established
1990: Schengen Agreement abolishes frontiers
From integration to takeover
107
AIRBUS
A Changing Framework:
European Integration
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
108. The Road to European Programmes
A new international actor enters the scene
1992: Maastricht Treaty transfers national political prerogatives to the European Union (EU)
1993: Single European Market launched
1996: Beginnings of the Single European Sky initiative
1996: European Commission suggets to consolidate the European aerospace industry as the
only way to resist U.S. competition (Com(97) 466 final)
1997: European Association of Aerospace Industries (AECMA) launches the European
Integrated Aeronautics Programme (EIAP)
2001: Euro introduced as the European currency
From takeover to association
108
AIRBUS
A Changing Framework:
European Integration
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
109. The Road to European Leadership
A new supranational entity gets active
2001: Experts claim in « Vision 2020 » as an answer to the European Commissioner for
Research that Europe can take the lead in aerospace
2001: Aerospace actors establish the Advisory Council for Aeronautics Research in
Europe (ACARE)
2002: European Air Safety Agency (EASA) established (EC Regulation 1592/2002)
2003: Commission Regulation on aircraft certification (CR 1702/2002
2004: European Commission launches Single European Sky ATM (SESAR) to merge
aerospace technology and air traffic management and procedures
From assimilation to responsibility
109
AIRBUS
A Changing Framework:
European Integration
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
110. AIRBUS
A Changing Framework:
European Integration
Towards a European Crisis?
A new supranational entity gets active
2004: European Constitution rejected by referendum
2005: European Union Emissions Trade Scheme (EU ETS) targets air transport
2007: Europe hit by financial crisis
2009: Recession and beginnings of the Euro crisis
2011: European Financial Stabilization Mechanism and European Financial Stability
Facility
2012: European Union Emissions Trade Scheme (EU ETS) launched
From responsibilities to burden 110
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
111. AIRBUS
The World of Air Transport
Demand: Operators / Supply: Airframers
Classroom Incubation 4
What do you think about the European integration
Compare three influences in groups for 10 minutes
Elaborate a coherent profile for one sector
Nominate a group representative
Share your findings with your colleagues
Be your own integrator
© Dr. Daniel Stanislaus Martel Human Resources and Organization
111
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
113. AIRBUS
The World Around Everything:
Globalization and Neoliberalism
Human Resources and Organization
Prof. Dr. Edgar Bellow
13th March 2012
Reims - France
Dr. Daniel Stanislaus Martel
Lecturer at University of Management, Economics and Finance, Geneva, Dunya Institute of Higher
Education, and AKAD Banking & Finance, Zurich and Berne
Aerospace Journalist & Editor/Consultant
114. Examples
Four representative projects
How Airbus fights competitors
A business strategy
How the Airbus A380 came into being
Example of a complex project management
The ongoing match
Airbus A320 Neo versus Boeing 737
The open next round
The Boeing B787 versus the Airbus A350 XWB
… yours to learn from
114
AIRBUS
The World Around Everything:
Globalization and Neoliberalism
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
115. How Airbus Fights Competitors (1)
An integral strategy…
Maximize technology leaps as long as adequate
Right timing in respect to futured air transport demand
Product differentiation through complementarity
Long term vision in technology and customer response
Customer lock-in through Path Dependence
… based on superiority
115
AIRBUS
The World Around Everything:
Globalization and Neoliberalism
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
116. The Airbus Challenges based on Porter
Potential Entrants
Threat of new
competitors (RU, BR, TJ)
© Dr. Daniel Stanislaus Martel Human Resources and Organization
116
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
Source: Author based on Cortez (2010), p.76
Strategic
Risks
for AIRBUS
Industry Competitors
Rivalry among
existing firms (Boeing)
Buyers
Bargaining power of
customers (airlines)
Substitutes
Threat of substitute
products (ICE…)
Suppliers
Bargaining power of
suppliers (engines)
AIRBUS
The World Around Everything:
Globalization and Neoliberalism
117. Statistics of a Success Story
© Dr. Daniel Stanislaus Martel Human Resources and Organization
117
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
Source: Author based on Cortez (2010), p.76
AIRBUS
The World Around Everything:
Globalization and Neoliberalism
118. The Airbus Challenges based on Porter
© Dr. Daniel Stanislaus Martel Human Resources and Organization
118
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
Source: Author based on Cortez (2010), p.76
AIRBUS
The World Around Everything:
Globalization and Neoliberalism
119. How the A380 came into being (1)
Maximized disruptions without « ripping the envelope »…
Product elaboration with all aspects in mind
Maximized innovations within existing Path Dependence
Creating a new product category
Maximized Marketing Hype
Customer lock-in through Path Dependence
… as a way to minimize risks
119
AIRBUS
The World Around Everything:
Globalization and Neoliberalism
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
120. A380 implementation and Risk Centered Approach
© Dr. Daniel Stanislaus Martel Human Resources and Organization
120
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
Source: Author based on Cortez (2010), p.76
AIRBUS
The World Around Everything:
Globalization and Neoliberalism
121. A380 implementation and Risk Centered Approach
© Dr. Daniel Stanislaus Martel Human Resources and Organization
121
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
Source: Author based on Cortez (2010), p.76
AIRBUS
The World Around Everything:
Globalization and Neoliberalism
122. AIRBUS
The World Around Everything:
Globalization and Neoliberalism
How the A380 came into being (2)
Challenges encountered and overcome
Exponential complexity of product, manufacturing and
development
Budget overflows in times of expenditure cutting
Management problems unrelated to properties of aircraft
Negative dynamics of management problems
… yours to learn from exponential complexity 122
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
123. The Open Next Round: B787 versus A350 XWB (1)
Challenges overcome and pushed aside?
Boeing 787 posed challenge
Airbus hit by recession and during short-term economies
Minimized response in the A350 based on A330 family
Customers wanted a strong Airbus to avoid Boeing monopoly
Airbus half heatedly yielded to customers (situation of monopoly)
Airbus has to learn again
123
AIRBUS
The World Around Everything:
Globalization and Neoliberalism
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
124. AIRBUS
The World Around Everything:
Globalization and Neoliberalism
Risk Taking In Innovation
New Product
B787 / A350 XWB
New way of
Distribution
Disruptive Marketing
Source: Author based on Cortez (2010), p.278-291, Murdick, et.al. (1989), p.177-201, and Hampton (2009), p.81-94
© Dr. Daniel Stanislaus Martel Human Resources and Organization
124
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
New technology
Many disruptions
New way of
Manufacturing
Composites
R I S K
125. The Open Next Round: B787 versus A350 XWB (2)
Challenges still underestimated
Airbus A350XWB attempts to leapfrog the B787
Programme attempts to learn from technology leap
Airbus still wants to minimize cost
Customers are deceived and try to obtain more
Boeing has chance to « shoot down » A350 XWB through B777 upgrade
Will Airbus learn the lesson?
125
AIRBUS
The World Around Everything:
Globalization and Neoliberalism
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
126. The Successful Match A320 NEO versus B737 MAX (1)
Airbus dominates the upcoming cycle
Fastest selling aircraft family in history with 1400 orders in 1.5 years
Extrapolation of proven existing design
Technological updates
No disruption, therefore Micro-Path Dependence fully maintained
First major product overhaul
Boeing has difficulties to follow
… yours to learn from
126
AIRBUS
The World Around Everything:
Globalization and Neoliberalism
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
127. AIRBUS
The World Around Everything:
Globalization and Neoliberalism
The BCG Product Portfolio applied to Airbus
Question Marks (A380) Stars (Airbus Narrowbodies)
© Dr. Daniel Stanislaus Martel Human Resources and Organization
127
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
Source: Author based on Krogerus et al. (2008), pp.14-15
Relative
Marketshare
Growth in Market
High
High
Low
Low
Dogs (A350 XWB) Cash Cows (A330)
128. The Successful Match A320 NEO versus B737 MAX (2)
Airbus dominates the upcoming cycle
Fastest selling aircraft family in history with 1400 orders in 1.5 years
Extrapolation of proven existing design
Technological updates
No disruption, therefore Micro-Path Dependence fully maintained
First major product overhaul
… yours to learn from
128
AIRBUS
The World Around Everything:
Globalization and Neoliberalism
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
129. The Successful Match A320 NEO versus B737 MAX (3)
Boeing in the meantime
B737 far older than A320
B737 far more difficult to upgrade – but no monopoly wanted
Other constraints (landing gear lower than A320), limiting engine
options
Pressure on cost of R & D
May run into difficulties
129
AIRBUS
The World Around Everything:
Globalization and Neoliberalism
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
130. AIRBUS
The World Around Everything:
Globalization and Neoliberalism
Classroom Incubation 5
What do you think about these programmes
Adopt one of them for your industry
Elaborate a coherent Site Optimization policy or decide against
Nominate a group representative
Share your findings with your colleagues
Be your own programme manager
© Dr. Daniel Stanislaus Martel Human Resources and Organization
130
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
132. AIRBUS
Looks into the
Future as a Conclusion
Human Resources and Organization
Prof. Dr. Edgar Bellow
13th February 2012
Dr. Daniel Stanislaus Martel
Lecturer at University of Management, Economics and Finance, Geneva, Dunya Institute of Higher
Education, and AKAD Banking & Finance, Zurich and Berne
Aerospace Journalist & Editor/Consultant
133. AIRBUS
Looks into the
Future for a Conclusion
Open Questions (1)
Some examples
New competitors
Technology leaps and disruptions
Alternative fuels
Future raw materials demand and supply
Yours to think about them
© Dr. Daniel Stanislaus Martel Human Resources and Organization
133
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
134. AIRBUS
Looks into the
Future for a Conclusion
Open Questions (2)
New Competitors
Russia and China make efforts in Strategic Trade Policies
Massive investments
Winning trust by customers
Airbus and Boeing well-established (common interest)
Fundamental disruptions impossible
… yours to learn from
© Dr. Daniel Stanislaus Martel Human Resources and Organization
134
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
135. The Vernon International Product Life Cyce
© Dr. Daniel Stanislaus Martel Human Resources and Organization
135
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
Source: Author based on Graf (2002), p.23
AIRBUS
Looks into the
Future for a Conclusion
136. AIRBUS
Looks into the
Future for a Conclusion
Open Questions (2)
Technology leaps and disruptions
Widebodies: ongoing potential for optimizations
Narrowbodies: disruptive potential limited owing to operational
constraints
New materials and technologies of limited impact on short haul aircraft
Aircraft remain compromises following systemic lock-ins (infrastructure!)
From reality to dream
© Dr. Daniel Stanislaus Martel Human Resources and Organization
136
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
137. AIRBUS
Looks into the
Future for a Conclusion
Open Questions (3)
Alternative fuels
Global air transport fuel demand counts for 3.4 % of world oil
consumption
Efficiency gains of jet engines some 40 % over the last 50 years
Leverage gains (ATC, flight management, ground procedures…) largely
untapped (potential at least another 40 % savings)
On-board storage, refueling and safety issues
… yours to learn from
© Dr. Daniel Stanislaus Martel Human Resources and Organization
137
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
138. AIRBUS
Looks into the
Future for a Conclusion
Open Questions (4)
Alternative fuels
Hydrogen too disruptive
Biofuels more promising but energy yield lower
Biofuels not more ecological if overall picture in mind
Solar energy and electricity out of the question
Integral research to be continued
Beware of illusions
© Dr. Daniel Stanislaus Martel Human Resources and Organization
138
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
139. AIRBUS
Looks into the
Future for a Conclusion
Open Questions (6)
Future raw materials demand and supply
Ecological approaches do not reduce demand for critical raw
materials
Quantities lowered owing to better engineering
Depending on technologies adopted (LED diodes, displays,
materials…)
Air transport remains marginal in overall resource use
… yours to learn from
© Dr. Daniel Stanislaus Martel Human Resources and Organization
139
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
140. The Look into the Future
Prognoses
Pro-jections
Short Distance into the Future Long
© Dr. Daniel Stanislaus Martel Human Resources and Organization
140
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
Low High
Source: Author based on Graf (2002), p.23
Scenarios Expectations
Wishes
Hope
Reliability
AIRBUS
Looks into the
Future for a Conclusion
141. The Future As It Will Most Probably Be
Prognoses
Pro-jections
Short Distance into the Future Long
© Dr. Daniel Stanislaus Martel Human Resources and Organization
141
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
Low High
Source: Author based on Graf (2002), p.23
Scenarios Expectations
Wishes
Hope
Wild-card
Wild-card
Wild-card
Wild-card
Wild-card
Black
Swan
Black
Swan
Reliability
AIRBUS
Looks into the
Future for a Conclusion
142. AIRBUS
The World of Air Transport
Demand: Operators / Supply: Airframers
Classroom Incubation 6
What do you think about the Airbus case
Discuss in groups for 10 minutes
Elaborate an overall conclusions
Nominate a group representative
Share your findings with your colleagues
The floor is yours
© Dr. Daniel Stanislaus Martel Human Resources and Organization
142
dmartel@bluewin.ch
Professeur Dr. Edgar Bellow
www.danstanmart.com
13th February 2012
144. 144
Qs and attempts of As
« ? »
« !! »
Human Resources and Organization
Professeur Dr. Edgar Bellow
13th February 2012
© Dr. Daniel Stanislaus Martel
dmartel@bluewin.ch
www.danstanmart.com