AIRBUS

Presentation Business Policy (MGMT 690)

Presented to: Presented by :

Dr. Ozelli Rajiv Sundar Anagha Borawake Amit Gutha Shilpa Gupta Robinson Cotney Krupal Thakkar

History

Airbus was established in 1970 as an European consortium of French, German and later, Spanish and U.K companies. The two full partners in the original consortium were Aerospatiale for France and Deutsche Aerospace for Germany. In 1971 CASA of Spain became a full member of the GIE. (GIE moved to Toulouse in 1974.) In 1979 British Aerospace became a full partner.

History (Continued)

Airbus first aircraft, the A300B, was launched at the 1969 Paris air show.

1974, the A300 had been certified on budget and ahead of schedule.

1975, Airbus had 10 per cent of the market and a total of 55 aircraft on order.

1979, Airbus had 256 orders from 32 customers and 81 aircraft in service with 14 operators.

Development
YEAR

MONTH MAY DECEMBER OCTOBER MAY JUNE JULY AUGUST DECEMBER APRIL

HIGHLIGHT A300 CREATION OF AIRBUS INDUSTRY A300 FIRST FLIGHT A300B2 ENTRY INTO SERVICE A300B4 ENTRY INTO SERVICE A310 LAUNCH A300B4 CONVERTIBLE PASSENGER/ CARGO A300-600 SERIES GO-AHEAD A310 FIRST FLIGHT

1969 1970 1972 1974 1975 1978

1980 1982

Development (Continued)
YEAR

MONTH
MARCH JULY MARCH DECEMBER FEBRUARY JUNE DECEMBER FEBRUARY MARCH NOVEMBER

HIGHLIGHT
A310-300 GO-AHEAD A300-600 FIRST FLIGHT A320 LAUNCH A310-300 ENTRY INTO SERVICE A320 FIRST FLIGHT A330/A340 LAUNCH A300-600R FIRST FLIGHT A320 CERTIFICATE A320 DELIVERY A321 LAUNCH

1983 1984 1985 1987

1988
1989

Development (Continued)
YEAR

MONTH OCTOBER NOVEMBER DECEMBER JANUARY MARCH JUNE OCTOBER DECEMBER JANUARY SEPTEMBER JANUARY SEPTEMBER NOVEMBER

HIGHLIGHT A340 FIRST FLIGHT A330 FIRST FLIGHT A340 CERTIFICATION A340 FIRST DELIVERY A321 FIRST FLIGHT A319 LAUNCH A330 CERTIFICATION A330 FIRST DELIVERY A321 CERTIFICATION A321 FRIST DELIVERY A300-600ST FIRST FLIGHT A319 FIRST FLIGHT A300-600ST CERTIFICATION A330-200 LAUNCH

1991 1992 1993

1994 1995

Development (Continued)
YEAR

MONTH

HIGHLIGHT

1996

JANUARY APRIL
JUNE APRIL JANUARY APRIL JANUARY FEBRUARY APRIL MAY AUGUST DECEMBER

1997 1999 2001 2002

A300-600ST ENTRY INTO SERVICE A319 CERTIFICATION A319 FIRST DELIVERY A340-500-/600 LAUNCH A319 CORPORATE JET LAUNCH A318 LAUNCH AIRBUS INTEGRATED COMPANY A340-600 FIRST FLIGHT A318 FIRST FLIGHT A340-500 FIRST FLIGHT A380 (WORK IMPLEMENTATION) A340-600 CERTIFICATION A340-600 ENTRY INTO SERVICES A340-500 CERTIFICATION

OWNERSHIP STRUCTURE
BAE SYS 20% EADS BAE SYS EADS 80%

SIMPLIFIED JOINT STOCK COMPANY UNDER FRENCH LAW EADS (EUROPEAN AERONAUTIC DEFENCE & SPACE
COMPANY)
AEROSPATIALE MARTA SA of FRANCE DAIMLER CHRYSLER AEROSPACE AG of GERMANY CONSTRUCCIONES AERONAUTICS SA of SPAIN

BAE SYSTEMS
- U.K BASED

CORPORATE STRUCTURE
Nol Forgeard President and Chief Executive Officer
Chief Financial Officer Chief Operating Officer

Executive Vice President, Quality and Integration Executive Vice President Manufacturing

Executive Vice President Customer Services Executive Vice President, Special Advisor to the CEO

Managing Director of Airbus Military SL

Executive Vice President, Programs

Executive Vice President, Government Relations, Communications and External Affairs

Executive Vice President, Customer Affairs, Chief Commercial Officer

Executive Vice President, Procurement

Executive Vice President Engineering

Executive Vice President, Human Resources

Senior Vice President, General Manager, Airbus Germany

Senior Vice President, General Manager, Airbus France

Senior Vice President, General Manager, Airbus Spain

Senior Vice President, General Manager Airbus U.K.

Senior Vice President, President Airbus Japan

Senior Vice President, Chairman of Airbus North America

Senior Vice President, President Airbus China

SBUS STRUCTURE

FAMILY STRUCTURE

AIRBUS MILITARY

GEOGRAPHIC STRUCTURE
OPERATIONS:

FRANCE

GERMANY

U.K

SPAIN

SUBSIDIARIES

NORTH AMERICA

CHINA

JAPAN

Current Market Situation for Air Travel

1) Effects of Economic recession Economic Growth ( GDP) is the prime driver of demand. Fares are another Important Driver. Low cost no frills carriers are successful.

2) Aftermath of September 11th, 2001

Affected Travel habits 0f Americans. Airfreight traffic historically more volatile then passenger Traffic. Current Demand for Air Travel: Huge Demand for Single Aisle 100 Seaters Such As (A 318s etc) Ever Expanding Route Network. Hub System Replaces Point to Point System

2) High Demand for Double Aisle Wide Bodies ( A 340-500 / 600) Few Asian Destinations Will Support Direct Intercontinental Air Service.

b) Evolving Service patterns will require a variety of Complementary Aircraft types (A 340,500/600)

3)

Demand for Super Jumbos (A-380)

a) Hub to Hub Transportation.

b) Huge Capacity ( 35 % larger then 747) with comparatively low Operating Costs Drive the Demand for A-380 over 747s.

Global Market Forecast for Airbus Vision 2020

Worldwide demand for air transport will grow strongly

Travel growth will vary widely between different markets

(Continued)

Airlines will significantly improve productivity. The numbers of seats and dedicated freighter lift capacity will more than double. The numbers of departures offered on existing and new. passenger routes will increase by 86%.

The airlines will offer more seats per departure

The active passenger fleet will increase by more than 80% from the current fleet of 10,900 to 19,732 by 2020.

36% of the current passenger fleet will be retired from active commercial service. To accommodate traffic growth and renew their fleets, the airlines will take delivery of 15,181 new passenger aircraft .

North American airlines will take the largest share of passenger aircraft deliveries, yet their share of world seats will be overtaken by that of airlines in Europe and Asia-Pacific.

The active world freighter fleet will grow to 3,338 aircraft with an average lift capacity of 55.6 tones from 1,540 aircraft with an average 46.9 tones capacity at end 2000.

The 15,887 new passenger aircraft and freighters to be delivered during the next twenty years represent a business volume of approximately $1.5 trillion* (2002 catalogue prices)

Wide bodies will increase their share of the world fleet

(Continued)

DEMAND
Expected Demand for Passenger Fleet till 2020

(Continued)

10,201 aircraft in the 100-, 125-, 150-, 175- and 210-seat categories, where Airbus has already established a strong and diverse customer base with the advanced and efficient A318, A319, A320 and A321;

3,842 aircraft in the 250-, 300-, 350- and 400-seat categories, where the twin- and four-engine members of the A330/A340 family offer an unmatched combination of efficiency and freedom from operational restrictions, and;

1,138 very large aircraft in size categories above 400 seats, where following the most successful civil aircraft launch campaign in history the all-new fouraisle A380 will enter service in 2006.

Demand for Freight Fleet

Demand for Basic Feeders ~ 956 Demand for Regional Freighters ~1231 Demand for long Range Freighters ~ 377 Demand for Large Freighters ~ 774

Killing Competition

Design and Development of A380 the 747 Killer. Common Cockpit Design Technique. Usage of Fly-by-wire Technology. Discount Pricing.