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Airbus case study
Airbus case study
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Airbus is the aircraft manufacturing division of the Airbus Group. Headquartered in Blagnac, France, it has manufacturing and production facilities predominantly in France, Germany, Spain and the United Kingdom. In these 4 locations alone Airbus employs about 63,000 people, and in 2009 it also started a final assembly plant in Tianjin, China. Airbus also has subsidiaries in Unites States, Japan and India. (Airbus.com)
Airbus Industrie began as a consortium of European aviation firms in order to provide competition to American companies such as Boeing, McDonnell Douglas, and Lockheed. Despite multiple small European aircraft companies, none could manage more than a relatively short production run (Nicholls, 2001). In 1991, Jean Pierson, then CEO and Managing Director of Airbus Industrie, described a number of factors which explained the dominant position of American aircraft manufacturers: the land mass of the United States made air transport the favoured mode of travel; a 1942 Anglo-American agreement has giventhe responsibility for aviation improvements to the US; and World War II had left America with an advanced and well structures aeronautical industry." (Nicholls, 2001) Hence, Airbus’s Mission Statement states “For the purpose of strengthening European co-operation in the field of aviation technology and thereby promoting economic and technological progress in Europe, to take appropriate measures for the joint development and production of an airbus."
In 1959 Hawker Siddeley, a group of British manufacturing company, had advertised an "Airbus" version of the Armstrong Whitworth AW.660 Argosy aircraft, which would "be able to lift as many as 126 passengers on ultra-short routes at a direct operating cost of 2d. per seat mil...
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... Grounded the Airbus A380?"
Martin, Grant. "Emirates A380 arrives in New York!." Gadling.com. N.p., 3 Aug. 2008. Web.
Michaels, D. (7 April 2006). "BAE in Talks With EADS to Sell its 20% Airbus Stake; British Firm is Focusing Increasingly on Defense Market, Especially in U.S.". The Wall Street Journal.
Harrison, Michael (15 June 2006). "BAE launches attack on EADS over Airbus superjumbo warning". The Independent.
Dougherty, Carter (3 July 2006). "Top Officials of Airbus and EADS Step Down". New York Times.
Hotten, Russell (4 October 2006). "BAE vote clears sale of Airbus stake". Daily Telegraph(UK).
"Streiff resigns as CEO of Airbus". BBC News. 9 October 2006
Frost, Laurence (2 March 2007). "Airbus unions call for a strike on Tuesday over job cuts". SignOnSanDiego.
Hoyle, Craig (28 April 2008). "Hercules support deal transforms RAF operations". Flight International.
Developing the World's Largest Commercial Jet. In this case, we will be analyzing strategic interaction between the two. Airbus and Boeing, the two leading producers in the global commercial. aircraft industry.
The Qantas ‘engineers workplace dispute’ of 2011 was the result of workers demanding an increase in remuneration, the diversification of employment and an increase in job security in sight of Qantas’ cessation of workers for capital-labour substitution, and rising inflation. Which required Qantas to utilise negotiation of contractual conditions, grievance procedures for employee complaints, and tribunals for legislative arbitration. The engineers demanded a 4% annual pay rise (remuneration), new classification levels i.e. employment diversification, job security pay claims and to not be outsourced in a new EBA (Enterprise Bargaining Agreement) [1]. They pursued Qantas to achieve this log of claims, through the ALAEA (Australian Licensed Aircraft Engineers Association) union in proposing that contractors be restricted, access to productivity improvements in technology be restricted, and that Qantas build a fully tooled and staffed heavy maintenance facility. These demands were what Qantas’ engineer labour argued as vital in being able to earn a sustainable long term income, as recruitment and selection processes in the modern era are extremely difficult and require
The PATCO strike began on August 3, 1981 with over 13,000 people walking out. This "illegal" act was met with a quick response from President Ronald Reagan (Sconberger p 1). Reagan told the strikers, "Either return to work within 48 hours or be fired from government service for breaking the 'oath of office' not to strike (Sconberger, special report, p. 12). While roughly 1,200 workers returned to work, another 12,000 remained on strike and were promptly fired (Sconberger p 1). This caused a serious safety problem for the airlines, inconveniences for many Americans, and lost profits for many businesses. Controllers needed to be replaced and it needed to be done fast. As a result, their were many questions on the safety of airlines. In order to understand the effects of the strike on the safety of airlines, an understanding of the PATCO movement is necessary.
The American Airline Industry The Airline Industry is a highly competitive industry with companies operating in domestic and/or international markets. Many airlines are stilled owned by their respective countries and have treaties between countries to allow airlines to land there. The industry has been taking a relatively shaky course as costs are rising and profits have been decreasing. This was further intensified with the recent terrorist attacks on US soil, which lead to higher costs as the need for more security arose. Recent financial statements of major airlines showing major losses reflect the problems that the industry is having.
The Boeing Corporation is one of the largest manufacturers in the world. Rivaled only by European giant Airbus in the aerospace industry, Boeing is a leader in research, design and manufacture of commercial jet airliners, for commercial, industrial and military customers. Despite enjoying immense success in its market and dominating an industry that solely recognizes engineering excellence, it is crucial for Boeing to ensure continued growth through consistent strategy formulation and execution to avoid falling behind in market share to close and coming rivals.
Reviewing the editorial entitled “Not Just Public Unions: Private Sector Unions Hurting Business” written by Mr. Stephen DeMaura, the author presents the issue of American Airline (AA) pilots not receiving the support from the Allied Pilots Association (ALPA), the AA pilots’ union. The editorial describes how the AA pilots’ union failed them by “… rejecting a concessionary contract offered by management. The contract included pay raises and a 13.5 percent stake in the company… (DeMaura, 2012). In order to look at why ALPA refused a contract which the airlines’ management put on the table for the benefit of their pilots, a look at the state of union relations within the airline industry in the United States needs to be reviewed. Nevertheless, at the end of doing a review why ALPA refused such a contract, it was the relentless efforts of the pilots to fight for their rights which changed what would have been a bad outcome for the pilots if they would taken ALPA’s representation.
As aviation matured, airlines, aircraft manufacturers and airport operators merged into giant corporations. When cries of "monopoly" arose, the conglomerates dismantled.
New York Times, p. 1. http://www.nytimes.com/2009/09/09/business/economy/09leonhardt.html?_r=1 Lipman, Marc. A. A. Personal Interview. March 21, 2010. Marano, Hara E. (2004).
The engineering section of aircraft manufacturing is quite old. It is characterized by a few firms that keep Rolls-Royce on its toes in terms of competition, like General Electric. The small number of firms can be justified by the high cost of starting of...
Alliance with Airbus: - May never be possible given their histories. Certainly isn’t good for the air travel industry.
Summary William Boeing founded the Boeing airplane company in the early 20th century. After strings of acquisitions and mergers, this company grew and became the largest global aerospace industry. Followed by previous reorganizations in the 1990s, this company decided to start its branding campaign in May 2001. This campaign consisted of lots of effort and structural changes for the first time in corporate history. The media was showing the initial success of this campaign just after its beginning.
Airbus A380: How the Airlines Compare." Busineesstraveller.com. Panacea Publishing, 31 Aug. 2013. Web. 1 Dec. 2013.
Michael, D. (2010, June 9).Emirate Airline Orders More Airbus Planes, Challenging Germany’s Lufthansa. The Wall Street Journal, p.B1.
Boeing was founded in 1916 in Seattle, Washington by William E. Boeing. The company is regarded as one of the world’s leading manufacturer of commercial and military aircrafts; it controls more than half of the passenger aircrafts’ market in addition to military jets and helicopters. The company also has other contributions in space technology and projectile systems (Amir, 2013). This report will analyze Boeing Company’s latest marketing strategy that the company has been dealing with for the past five years whilst the production of its much anticipated 787 aircraft. Throughout the report the aircraft will be referred to as the 787, the ’87, or the ‘Dreamliner’. Mainly, this failed strategy affected the company's negatively in terms of both sales and reputation.
Foundry industry is a branch of industry that produces the castings by filling molds with molten alloys. The volume of foundry production in the world is more than 80 millions.