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Essay / Airbus A3XX Case Study Analysis - 708
Airbus A3XX Case Study AnalysisIntroduction of Boeing and Airbus In the United States, Boeing has been the leading manufacturer of civil aviation for more than a half century. Through manufacturing and defense techniques, it quickly became the world's leading producer of commercial aircraft. In their fleet of fourteen models (five families), their precursor was the 747-400. When they first produced the 747 in 1965, their decision was criticized and called a gamble. Boeing nevertheless announced an initial order for 25 planes, which caused its stock price to rise by 5.1%. Despite a potential initial failure, Boeing's demand for the 747 aircraft remained strong with 47 planes delivered in 1999 and 74 more in the backlog. Competing with American aerospace companies, such as Boeing and McDonnell Douglas, Airbus was created in 1970. as an association with "the leading aerospace companies of Germany (Deutsche Aerospace…), France (Aerospatiale Matra), 'England (Hawker Siddeley of Great Britain, later BAE Systems) and Spain (Construcciones Aeronauticas, CASA)' (p. 3). The company has primarily focused on creating a highly competitive line of commercial aircraft. But over time, the partnership between the four countries became unmanageable and three of them formed a new company known as the European Aeronautical and Space Defense Corporation (EADS). Airbus, one of the main divisions of this new company, had a fleet of nine models in 1999 and "employed 'fly-by-wire' technology which replaced computerized control with mechanical connections between the pilot and the aircraft's control surfaces » (p. 3).The A3XXBoeing held a monopoly on the very large aircraft (VLA) market with its 747 aircraft. Airbus has made a middle of paper ......gy to make it more powerful and more attractive than the Airbus A3XX. As this project may take some time, Boeing may have to work quickly to catch up with Airbus. Airbus' commitment Airbus' decision to commit to the project is difficult to make. On the one hand, it is possible that all early investors would receive discounts, which would cause Airbus to lose money. However, on the other hand, it is possible that Airbus will make even more money than it ever imagined by designing a plane that attracts passengers around the world thanks to the greater amount of space , details and comfort offered in each model. Additionally, as the VLA market is expanding rapidly, Airbus is able to enter it earlier. If the company continues to create new aircraft and develop good strategies compared to other competitors in the market, it may soon become a leader..