Macroecons Research Paper
1969 Words8 Pages
Research Overview
The Airbus model A380 is truly one of the most ambitious projects that were undertaken by the company in recent years, shoring a new benchmark for commercial aviation both for itself and its competitors. The behemoth, for all its size and payload capabilities, boasts an approximate 20% increased efficiency in its fuel to seat ratio in respect to the other aircrafts. This makes the A380 one of the most fuel savings and environment friendly aircrafts of its time, due to decreased fuel combustion, resulting in less carbon dioxide being produced in respect to its size. This has been coined by Emirates Airline “the most significant advancement in reducing fuel consumption and emissions in four decades.”
On the economic front, the Airbus 380 is able to carry more passengers on each flight, creating cost savings while maintaining capacity. These technological advances ensure that the equilibrium quantity for the flights will be lesser than what it used to, as its supply increases. In turn, this could mean increased revenue for commercial aviation industry for the following years.
However, it is worth noting that despite all its marketing hype and sales strategies, the demand for this supposed technological breakthrough masterpiece had seen a decline in recent years. According to Airbus sales Chief John Leahy, there is an expectation that the demand orders for the A380 “has been slowing down”. This study will show the trends as well as some of the reasons for it.
Variables identified
Dependent Variable(s):
The demand for A380s in Asia for the next two decades. Airbus, as mentioned before, had taken its commercial industry advancements to the next level and had set a new benchmark both for itself and its competitors ...
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