Airbus 380 Harvard Case Solution & Analysis

Causes of the delayed orders:

Airbus was facing the delayed order that causes the Airbus’sinvestors to sell their holdings. The causes were such as:

Lack of workforce:

The company was lacking in the workforce to produce at large level to meet the sudden demand that was created after the success of the A300. The demand was high, but to fulfill this demand the workers were short.

This shortage of worker was also affecting the delivery of the A380 as manufacturing process was slowed down, this led the customers to be dissatisfied and resulted in the cancelation of orders from its customers.

Airbus Product line:

Airbus had the wide range of aircraft after the A300 craft, having seating capacities of 107 passengers to more than 550 passengers in a single aircraft. The aircraft of the Airbus is inthe wide body range and attractive design with long range and ultra wide range and the double-decker Airbus.Airbus was under the observed design of the aircraft A350 and it was redesigned according to the customers need and if any other redesigning was done, then the Airbus would delay in delivering the aircraft and this will increase the development cost of the company.Common use of the cockpit system would differentiate the Airbus from the Boeing. Training of the pilot on different Airbus crafts, will reduce the crew cross qualification and greater flexibility in matching aircraft with available pilots.Airbus expands its customers from European airline to worldwide airline.

Comparision:

The major competing aircraft is a Boeing747; Airbus is planning to introduce the double decker airbus to add value to its customers, and this double decker Airbus has a capacity of more than 550 passengers. The new airbus has a wider cabin area as compared to the Boeing 747; this airbus is the world’s largest commercial aircraft. The commercial aircraft larger than the Boeing 747 would increase the market share of the company; this would also reduce the number of flights at the airport as the Airbus takes more passengers as compared to Boeing’s largest plane 747. These aircraft are built in modern manufacturing facilities, new unique design, and better supplier collaboration. To overcome the problem of more weight and more fuel cost in double decker airbus, they introduce the carbon fiber reinforced plastics and fiberglass laminate called glare to reduce the weight and fuel cost.

Situational Analysis:

Airbus A380 introduces the global change in the company, its structure, manufacturing processes and the corporate governance of the company. The new double decker airbus also increases the life of the company, its business spread across the world in approximately 85 countries, and having thousands of the supplier who are supplyingsuch materials to reduce the cost and low fuel consumption material that is carbon fiber reinforced plastic. The different team members are responsible for the development of Airbus A380. To increase the efficiency and effectiveness of the company, Airbus has designed different collaboration techniques to share the online integration of all the tasks for the development of product design, manufacturing and support.The first Airbus A380development centers are located across the world that is nine centers are in different localities and are opened where they feel appropriate. Moreover, different A380 passes through different process in all these localities and is assembled at the last center and then delivered to the customers across the world.

Justification of Order Cancellation

Airbus Company was facing problems to deliver their first Airbus A380 to its client that was Singapore Airline in March 2006. The company announces the delay in flight during the first test flight of the new A380 Airbus; the company has not analyzed the immediate effect of the delay in delivering the aircraft. Airbus had committed to deliverA380 in the late 2006, as before it has committed to deliver the A380 to Singapore Airline in March, 2006.Some other customers are also in line after the Singapore Airline. Airbus has not realized the financial impact on the company by the delay in delivering the aircraft; the first delay in the delivery caused the further delayed deliveries of the Airbus A380. Many customers of the Airbus A380 are disappointed from the delays in delivery of the aircraft; this delayed in deliveries caused the penalty payment for the Airbus to its customers.

The reduction in weight is due to the change of copper wire to the aluminum wire and many other services that were the customers’requirements, which had been fulfilled in the aircraft lately.The team members in Spain and Germany might not adopt these changes, as they are using the previous tools in the aircraft A380. This was different as compared to the divisions of the United Kingdom and France, which were using the advanced technologies to reduce the weight of the aircraft. This would also help the Airbus to reduce the fuel consumption of the Airbus A380.European Aeronautics Defense and Space Company fails to identify the risk associated with the airbus A380, and they had not indicated the further risks associated with the aircraft.....................................

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