Subject category:
Strategy and General Management
Published by:
IBS Research Center
Length: 16 pages
Data source: Published sources
Topics:
Airbus A380; Boeing 787 Dreamliner; Catia V5 CAD (computer-aided design) software; Fuselage wiring of A380; Louis Gallos; Thomas Enders; Wake vortex of A380; ICAO (International Civil Aviation Organisation) recommendation on A380; EADS (European Aeronautic Defense and Space Company NV); A380 order cancellations; Power8 Restructuring Plan; 10,000 job cuts; A380F Freighter order cancellation; Long-haul aircraft; Twin-aisle wide body aircraft from Airbus
Share a link:
https://casecent.re/p/74911
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
In 2006, Airbus booked 824 new orders for aircraft, representing a 44% market share at a value of US$75.1 billion. Unable to commence with the supply of the A380, a futuristic double-decker jet, it suffered 34 order cancellations. Two years behind schedule and US$2 billion over budget on the project, Airbus also faced a revenue loss of US$6.6 billion, which could make the company financially extinct. The case describes the events which led to the delay. The first was the fuselage wiring issue, which was caused by the different software versions used by Airbus'' German and French engineers. Wake vortexes, the air tornadoes developed by an aircraft which follow it, were very powerful in the case of the A380, because of its huge size and four high thrust engines. The ICAO''s (International Civil Aviation Organisation) recommendation that additional nautical miles be used to separate other aircraft from the A380, was a blow to Airbus, since already strained airports could not offer additional space to the A380, which cancelled the benefit of it carrying almost twice the passengers of its nearest rival the B747. The case describes the political turmoil regarding Airbus'' restructuring plan ''Power8''. Ten thousand job cuts, the hiving off of six manufacturing plants spread over three countries and cost cutting are a few of the measures which Airbus planned to implement, hoping to revive its fortunes, amidst stiff opposition from participating governments and labour unions. A structured assignment ''307-287-4'' is available to accompany this case.
About
Abstract
In 2006, Airbus booked 824 new orders for aircraft, representing a 44% market share at a value of US$75.1 billion. Unable to commence with the supply of the A380, a futuristic double-decker jet, it suffered 34 order cancellations. Two years behind schedule and US$2 billion over budget on the project, Airbus also faced a revenue loss of US$6.6 billion, which could make the company financially extinct. The case describes the events which led to the delay. The first was the fuselage wiring issue, which was caused by the different software versions used by Airbus'' German and French engineers. Wake vortexes, the air tornadoes developed by an aircraft which follow it, were very powerful in the case of the A380, because of its huge size and four high thrust engines. The ICAO''s (International Civil Aviation Organisation) recommendation that additional nautical miles be used to separate other aircraft from the A380, was a blow to Airbus, since already strained airports could not offer additional space to the A380, which cancelled the benefit of it carrying almost twice the passengers of its nearest rival the B747. The case describes the political turmoil regarding Airbus'' restructuring plan ''Power8''. Ten thousand job cuts, the hiving off of six manufacturing plants spread over three countries and cost cutting are a few of the measures which Airbus planned to implement, hoping to revive its fortunes, amidst stiff opposition from participating governments and labour unions. A structured assignment ''307-287-4'' is available to accompany this case.