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Airbus Commercial Case Study

Airbus Commercial is one of the four operating divisions of Airbus Group with Astrium, Eurocopter, and Cassadian (see Appendix 1). Founded in 1970, Airbus is now the European leading aircraft manufacturer, offering modern and efficient passenger aircraft on the more than 100-seat market. At the end of the financial year 2013, the commercial division of Airbus recorded 39.89 millions of Euros, which represents more than 65% of the group revenues (Airbus.com, 2014). Currently, Airbus Commercial competes in each of the three principal market segments for aircraft with more than 100 seats. These include:
- Single-aisle aircraft, these aircraft have 100 to 210 seats divided by one aisle and are principally used for short-range and medium-range routes.
- Twin-aisle or wide-body aircraft have a wider fuselage with more than 210 seats. These aircraft are capable of serving all short, to long-range markets.
- Very large aircraft, which are designed to carry more than 400 passengers over very long routes with superior comfort standards.
Operating of these different segments has enables Airbus to reach a high level of orders. In 2013, Airbus achieved a new industry record of 1,619 gross commercial orders (914 gross orders in 2012) with net orders of 1,503 aircraft (2012: 833 net orders) (Airbus.com, 2014).

Airbus designs central aircrafts and tailors them in order to create derivatives to meet the specific different needs and expectations of its customers. By operating this way, pilots can switch for one Airbus engine to another with reduced training costs. Furthermore, technology is at the core of Airbus’ priorities. Indeed, innovations provide the group distinct competitive advantages, with many becoming standards of the aircraft indu...

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... 90s and must now be replaced. Moreover, LOT’s fleet size is constitutes of 38 aircrafts, which is not sufficient regarding the growing demand for passenger air travel (+129% since 2000 in Poland (Worldbank, 2013)). For these reasons, the Airline has announced its intent to acquire ten to fifteen new aircraft by the end of 2014. The Airline is considering the different manufacturer’s offers (Drums, 2013) and especially the Airbus A320 as its characteristics are similar to the Boeing 737 (see Appendix 3). In addition, LOT is a member of Star Alliance since 2003, whose network currently offers more than 21,500 daily flights to 1,356 airports in 193 countries all over the world (World Aviation, 2014). Star Alliance also regroups 28 airlines companies such as Croatia, Slovenia and Turkish airlines that already well-established customers of Airbus (Star Alliance, 2013).

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