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Marketing Assignment - Airbus

Marketing Assignment - Airbus - An Overview of the Airline...

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An Overview of the Airline Manufacturing Industry The Airline Manufacturing Industry has grown manifolds over the past few decades with world traffic developing rapidly. Moreover, the demand for efficient aircrafts consistent with the implementation of the latest cutting-edge technology has increased substantially. Airline companies are increasingly looking for highly efficient and environment-friendly airliners in terms fuel consumption, gas emissions and noise pollution. The demand for airplanes has brought about bright prospects to its manufacturing industry. A broad analysis of world traffic developments envisages a rapid need for passenger as well as freight aircrafts. In the next two decades, industry analysts have asserted a demand of about 22,700 passenger and cargo aircrafts valued at US$ 2.6 trillion by aircraft operators. (Source: Airbus Global Market forecast, 2006, http://www.airbus.com/en/corporate/gmf/ ). The Airline Manufacturing Industry has 2 major players; US based Boeing and the European based Airbus. Boeing –the aircrafts manufacturing arm of The Boeing Company established in 1958- has over 20,000 in-service aircrafts world-wide making it the undisputed market leader. Airbus –the aircrafts manufacturing arm of European Aeronautic Defense and Space Company (EADS) established in 1970- has just over 4,000 in-service airliners world-wide. However, over the last decade, it has been the strongest competitor to Boeing outplaying it in terms of number of orders from airline companies. Airbus is in the production stages of its A380 –the largest passenger plane to date-while Boeing –which hasn’t introduced a new airliner in a decade- is working on its new 787 Dreamliner which shall directly compete with Airbus’ A380. With prospects running high in the industry, airline manufacturers are working to out- compete its rivals to get the larger market share.
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Brief History on Airbus Airbus was officially formed in 1970 as a consortium of France’s Aerospatiale and Deutsche Airbus, a grouping of leading German aircraft manufacturing firms. Together the companies had decided to build the A300, the first twin-engine wide body airliner, to fill a gap in the market and to challenge American supremacy in the aviation industry. Shortly afterwards Spain’s CASA joined the consortium and in 1974 the Airbus Industrie GIE, as it was known – Groupe d’Intérêt Economique – moved its headquarters from Paris to Toulouse. British Aerospace joined Airbus Industrie in 1979. Each of the four partners, known as Airbus France, Airbus Deutschland, Airbus UK and Airbus Españia, operated as national companies with special responsibilities for producing parts of the aircraft, to be transported to Toulouse for final assembly. The GIE provided a single face for sales, marketing and customer support.
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Marketing Assignment - Airbus - An Overview of the Airline...

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