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Abstract

This structured assignment is to accompany the case ''307-287-1''. The abstract of the case is as follows: 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.
Location:
Industry:
Size:
USD75 billion
Other setting(s):
2001-2007

About

Abstract

This structured assignment is to accompany the case ''307-287-1''. The abstract of the case is as follows: 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.

Settings

Location:
Industry:
Size:
USD75 billion
Other setting(s):
2001-2007

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