Airbus A3XX: Developing the Worlds Largest Commercial Jet (A) Harvard Case Solution & Analysis

In July 2000, the supervisory board of Airbus Industries »is on the verge of approval of a $ 13 billion investment to develop new super jumbo jet known as the A3XX, which would take place from 550 to 1,000 passengers. Receiving about 20 orders for new aircraft, the board must decide whether there is enough long-term demand for A3XX, to justify the investment. At the time, Airbus predicted that the market for very large aircraft (VLA), those seating more than 500 passengers, more than 1,500 aircraft over the next 20 years and will generate sales in excess of $ 350 billion. According to Airbus, it needs to sell 250 planes to break even and may sell as many as 750 aircraft over the next 20 years. This case is the two sets of forecasts and asks students whether they will start to run for the size of investment and the uncertainty in the long-term demand. "Hide
by Benjamin C. Esty, Michael Kane Source: HBS Premier Case Collection 20 pages. Publication Date: November 29, 2000. Prod. #: +201028- PDF-ENG

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