Airbus being one of the pioneers in manufacturing aircrafts business and was founded as a consortium of aerospace companies of Germany. Form the beginning the company is perceived to be innovative in terms of design and technology. This is one of the main reasons for the success of the company. Now, Airbus is planning to launch a new massive aircraft which would be named as, Airbus A3XX.
Interest in A3XX
While starting up with the plan of exploring the possibility of producing a huge aircraft, initially both giants Boeing and Airbus were in collaboration, but after sometime Boeing withdrew from the plan considering the project to be very risky and expensive. Whereas, Airbus continued with the idea and was able to develop the basic design by 1999. Further analysis of the project started creating more opportunities that derived the interest of the company towards the project. There are many reasons for which the company is interested in building Airbus A3XX, taking each in turn.
Firstly, the future demand expectations of the company about this huge jumbo jet is quite favorable in line with future success of the project. Considering the forecasts of A3XX the demand prospects seem to be very fruitful as company has already secured 20 orders from different companies. While future demand have been expected to be approximately fifteen hundred aircrafts over the next twenty years of the project, which seems to be very profitable considering the fact that the sales of aircraft would break even at only 250 aircrafts. Although the company could sell 750 aircrafts over next 20 years but this is still well above the breakeven and therefore represents the profit potential the project has.
Secondly, the feature and specifications of A3XX are far more superior that that of all other aircrafts currently used in the industry, and this attracted Airbus to consider this project. The design and performance characteristics which will make A3XX to be more similar with other Airbus models which will definitely ease the operations of the new aircraft for the pilots and related crew.
The capacity of the aircraft will be substantially over and above the existing aircrafts running in the industry, which will be a unique selling point too as it would be able to carry up to 1000 passengers, as compared to around 400 passenger capacity of the largest Boeing aircraft B747. Furthermore this can be seen by the airline companies as a more favorable option in order to carry more than double passengers of what they currently can. This would therefore bring in the factor of more economical in terms of cost per passenger absorbing the fixed costs of operations upon more passengers, although the costs of operations will be higher than Boeing 747 but extra capacity that will be available would be even more which makes A3XX more economical option.
Other than this, the aircraft will be loaded with four engines as compared to two engines in Boeing 747 which means greater security which would be more attractive to customers too, as in any case of emergency there will be three engines at the backup. Furthermore, the luxury and comfort that A3XX will provide can also be a unique point that created interest of Airbus in building this plane, such as, more space per seat, wider aisles, three decks having shower and lounge facility which will give an extra value to passengers.
While considering the project there will certainly be objectives which Airbus will be foreseeing to achieve by coming up with a new giant aircraft which is already seen as very expensive and risky by the competitor Boeing. Therefore, going on with the project, Airbus mainly have the following objectives.
Firstly, in order to compete well in the market especially with its main competitor Boeing, the introduction of a new model with significantly better facilities than that of its competitor this would give Airbus a competitive edge over Boeing and would also maintain the company’s reputation of being innovative in its design and technology.
Secondly, the foresight of having financial returns are one of the major objectives of any company of the world, and so is in the case of Airbus. In order to increase company’s profits new projects are to be considered continuously. This is why the company is planning to be successful in the project when it already knew that its competitor is out of it, and hence can bring back significant returns to the company by creating the competitive advantage.
Finally, being one of the two aircraft manufacturing giants, the success of the project would surely help in improving company’s position against its competitors and so giving Airbus the opportunity to be the market leader. Apart from this, there might be other objectives of the company in relation to building A3XX.