airbus Essay

793 WordsDec 24, 20084 Pages
Finance The sources of income of Airbus were orders from airline companies. Aircraft construction is a very complex, time-consuming, and extremely expensive business, though successful products can make a huge profit. This is a systematic risk across the industry. Therefore accurate prediction of the prospects of the airline industry is critical to the survival of Airbus. Airbus saw the success story of Boeing 747, and predicted the increasing demand for large capacity aircraft. This was the main motive of constructing A380. To attract buyers, the production of A380 was focused at offering high capacity, spacious and comfortable internal environment, lower fuel cost and maintenance cost per passenger, and quieter flying. It successfully attracted some current Boeing users and emergent airline companies, many were from Asia Pacific region. Technology Airbus depended heavily on technology to build reliable aircraft and innovate added values for competitive strengths. The A380 was designed for very large capacity and long-haul flight. It could accommodate up to more than 800 passengers, which is even more than a Boeing 747 can carry. The huge aircraft size may mean higher operating cost, higher fuel consumption, more noise, and longer runways to take off. The advanced technology of Airbus has allowed A380 to have at least 15% lower operating cost per passenger than Boeing 747. It also used better engines which led to lower maintenance cost. Moreover, A380 had lower noise level and therefore caused less pollution to the airports and the surrounding areas. With the more efficient wings, A380 could take off with the same runways as the Boeing 747. That means that the airports do not need to construct longer runways and hence saving extra costs. Another technological strength of Airbus is that it constructed A380 with more space and facilities for passengers, which

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