A380 Case Study

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A380-A business disaster in aviation world
As the world 's largest passenger aircraft, Airbus A380 is considered the pinnacle of large passenger aircraft. This double-deck, four-engine jumbo jet boasts a host of luxurious amenities: suites, bar, gym, and showers. As Tesla in the consumer caused by the desire, many people also want to try the A380 this air giant.
Airbus Chief Financial Officer Harald Wihelm said in London that the Airbus A380 is expected to maintain its break-even balance in 2015, 2016 and 2017, but that balance could not be sustained by 2018. This makes Airbus had to choose, either to replace the A380 engine to make it more attractive market, or the termination of the project. This is the first time that Airbus admitted they
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Airbus believe that the future market needs giant A380 aircraft, Boeing believes that the market needs the Boeing 787 medium-sized aircraft. Compared with the A380, the Boeing 787 can only take 210 to 330 people, and only do some progressive design, such as the use of the use of lightweight composite materials, and cabin comfort improvement. Of course, the most important thing is the Boeing 787 allows more passengers have a direct flight option, this is the most basic user needs. So far, the Boeing 787 orders have more than 1000.
Airbus is facing a fateful moment of A380, in addition to terminate the project, Airbus can also choose to replace the A380 with new engine, increasing its market appeal, but this means more development spending. Emirates President Tim Clark urged Airbus to upgrade the A380 engine to make it more fuel efficient. But Airbus is reluctantly to do that, because the increase in research costs does not match the demand of
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As the largest operator of the A380, Emirates is eager to develop Airbus A380neo aircraft, looking forward to more than 10% fuel efficiency. Tim Clark, the company 's chief executive, once the A380neo project was launched, Emirates could have "confirmed" orders of no less than 70. Obviously, Airbus consider launching A380neo project because of the pressure from Emirates, now it seems dilemma. In the second half of 2014, Airbus made a research for the A380neo project, they want to know if the additional sales profits can make up for the development process to pay the cost. In the meanwhile, they also analysis if they don’t make any change, how much number of A380 orders can be obtained in the future. After discussions with major engine manufacturers in Toulouse, Rolls-Royce support the development of the A380neo and the potential A380-900, while GE and Pratt & Whitney remained on the sidelines. So far, it is widely believed that Rolls-Royce has a favorable position in A380 upgrade project, because it has become the exclusive supplier of A330neo aircraft. The Trent 7000 engine is excepted to installed on the A330neo aircraft by the end of

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