Product details

In June 2006, after Airbus announced a delay in the deliveries of its forthcoming A380, the biggest passenger jet ever made, it raised an alarm for the aviation world, especially for the customers of A380. Prior to this, in 2005, the European plane manufacturer had already extended its delivery schedule by six months. The company cited some production issues as the reason for the delay. However, industry watchers suspected that there was more to the story than mere production issues. While the panicked customers were considering claiming compensation for the delay (some even were planning to cancel the orders), analysts wondered what had caused the crisis and how Airbus was going to overcome it. Some also believed that the crisis at Airbus was a golden opportunity for Boeing to regain its leadership position. The case tries to highlight Airbus'' problems and raises a question regarding how it could sort out its problems. It also discusses Boeing''s ability to capitalise on the opportunity.