Air Aviation Case Study

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Aviation is a worldwide industry in search of environmental, technological and infrastructure changes. Consequently, airport congestion and the demand to increase air travel has been a problem for years. Airbus is an international aerospace company that is leading in aerospace manufacturing, designing and distributing aerospace products. Products, services, and solutions to clients on a global scale. In 1960’s, Airbus started a complex joint venture backed by another airline manufactures in Europe along with their government. In October of 1972, Airbus created the A300 and after a while, business started to pick up and expanded into a bigger role. Airbus seeks to create a smaller and more fuel-efficient aircraft versus the “jumbo” planes at…show more content…
However, the airline industry increases air traffic to smaller airports which benefit Airbus competitors that were building midsize, wide-bodied planes carrying over 300 passengers (Gordon,2018). In 2000 Airbus was 80% owned by the European Aeronautic Defense and Space company and 20% by British BAE Systems (Pitt, Koufopolulos,2012). This helps lower the cost for the consumer and fight it, competitors, as the European Union gives aid to Airbus for their acquisitions. For the consumers, the lower the cost of acquisition is a good entity. Consequently, for Airbus biggest competitors, Boeing, responded from Airbus aircraft by flooding the market with mid-size planes to help the increased volume of air traffic (Hambug,2017). The “Superjumbo” A380 was in limbo. Superjumbo aircraft that can carry up to 850 passengers were now being looked as an eyesore and losing money (Pitt, Koufopolulos,2012). Airbus “superjumbo” was designed to perform everything the Boeing 747 does. The jumbo aircraft has the capability to fly over 8000 nautical miles without refueling, making it the ideal choice for long-distance flights (Pitt, Koufopolulos,2012). Consequently, the European labor laws offer multiple disadvantages such as high cost and regulation, non-mobile workforces and a lethargic economy regionally (Gordon,2014). According to the World Economic Forum, the European Union was disappointing compared to the other advance companies in three main components: innovation, higher education and training and the creation of an efficient labor market leaving the company open to being overtaken by its competition (Gordon,2014). In 2017 Airbus created 718 aircraft, a 4 percent increase from 2016, but has a backlog of order over a $1 trillion

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