Airbus A3XX

By Group 2 Click to edit Master subtitle style Suri, Dimple Batra, Gauraw Prasad, Phani M.K.M.S, Puja Walia, Raghav Agarwal Vidhu

VLA Industry scenario

Duopoly Highly capital intensive Shift from Hub to Spoke model to Point to Point model Sensitive to fuel, pollution, price to the customers

Need for the launch of A3XX

Worldwide passenger traffic expected to triple in volume by 2019 Will eventually lead to worsening of congestion at major air-ports The two available Solutions:

Increased frequencies and number between major airports. Increasing point-to-point routes.

Need for the launch of A3XX (Cont.)

Increasing frequencies among major airports can only be a short term solution Point to point services not feasible in developing economies because of lack of infrastructure

Advantages of A3XX

Best way to connect major airports of the world Ability to attract potential 747 customers. Deliver greater efficiency to carriers because of high capacity. More spacious and luxurious for customers. Easier to maintain and fix

Challenges to A3XX

Demand highly uncertain Dependent on growth of China Emergence of Low cost carriers Demand of smaller aircrafts Ultimate success Ability to break-even and future demands Dependent on Boeings response Lead to an era of price war

Conclusion

Airbus should go ahead with A3XX Since breakeven point is just 300 units there is a high likelihood of achieving break even point. Positive net present value of 511 million dollars indicating good return for the company. Will facilitate fast, efficient and luxurious way of travelling for customers