Airbus 9

Executive Summary In this report we have looked at the prospective market for Very Large Airplanes (VLA) and the aviation industry for the conterminous 20 years. We have then looked at the cost of producing and introduction the A3XX, and how many planes that has to be sold to break-even on this investment. Our conclusion is that in that location exists a market for the VLA aircrafts, and that this market testament continue to enkindle in the prospective. With a margin of 20 % Airbus have to lot 537 planes to break-even, and we believe that the expected demand for the A3XX during this 20-year period is 644, so we will recommend a launch of the A3XX Airbus objectives for launching the A3XX For Airbus to become the commercial message aviation industry leader they need to take market shares from the current leader in the industry, Boeing. As of 1999, Airbus received for the firstly time since its startup in 1970, over half of the kernel aircraft orders. But Airbus also believed there where a trend towards higher(prenominal) demand for very large airplanes (VLA). In this segment Boeing around had a monopoly with their superjumbo 747-400. Airbus could compete on range with its A340, but not in capacity. With the airbus A3XX, airbus would not only compete with the 747-400, they would be pucka when it comes to capacity.

They also believed that using their fly-by-wire technology, and the possibility to offer their passengers better comfort, i.e. to a greater extent space, cocktail bars, etc, they could create a first mover advantage. If Airbus could capture much than half of the VLA market, they would definitely become the industry leader. Expected future demand and Break Even level In exhibit 1 we have calculated the NPV of the A3XX project. With a discount rate at 11% and 20% in profit margins, we found that Airbus of necessity to sell 537 airplanes to break even on the project. If they sell this sum of money of airplanes, Airbus will get a positive NPV of 67 one million million dollars. When estimating what we think is going to be the total demand for... If you necessity to get a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper