...REV: SEPTEMBER 18, 2007 ERICH ALEXANDER VOIGT JORDAN MITCHELL Airbus vs. Boeing (A) Should Airbus go ahead and develop its own version of a super jumbo (the A3XX)? Should Boeing develop a larger version of the 747? What would Boeing and Airbus gain by teaming up? What could they lose? The answers to these questions would determine the future of both companies for many years to come. The Commercial Airline Industry Do The global aviation industry was sized at approximately $100 billion as of 1992. The single largest segment was the manufacture and sale of large commercial aircraft, which totaled $38.5 billion in 1991.1 The sale of large commercial aircraft was expected to grow to $40 billion by the end of 1992. The worldwide commercial aircraft fleet was made up of nearly 8,000 passenger and 1,200 cargo planes spread out over 450 airlines and operators. Large commercial aircraft were defined as airplanes with 100 or more seats. Large aircraft made up 90% of the fleet, while smaller airplanes accounted for the remaining 10%.2 The VLCT was defined as a plane over 400 seats or with the ____________________________________________________________ ____________________________________________________ Professor Ramon Casadesus-Masanell, Erich Alexander Voigt (Tiggeman Associates), and Research Associate Jordan Mitchell prepared this case. This case was developed from published sources. HBS cases are developed solely as the basis for class discussion. Cases are...
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...http://www.singaporeair.com/en_UK/about-us/sia-history/ The Early Days Singapore Airlines’ history can be traced back to 1 May 1947, when a Malayan Airways Limited (MAL) Airspeed Consul took off from Singapore Kallang Airport on the first of three scheduled flights a week to Kuala Lumpur, Ipoh and Penang. · Over the next five years, larger capacity DC-3 aircraft were introduced. This meant faster and more comfortable flights, and the extension of services to destinations in Indonesia, Vietnam, Burma (now Myanmar), North Borneo (Sabah) and Sarawak. · Inflight refreshments improved from the original thermos flask of iced water to sandwiches, biscuits and cold cuts plus a choice of hot and cold drinks, and alcoholic beverages served by a lone hostess. Known as “female pursers”, these hostesses are the forerunners of today’s Singapore Girl The 1950s & 1960 More new aircraft were added to the fleet in the 1950s and 1960s, the period leading up to the jet age. Among these were the DC-4 Skymaster, Vickers Viscount, Lockheed Super Constellation, Bristol Britannia, Comet IV and Fokker F27. · On 16 September 1963, the Federation of Malaysia was born and the Airline became known as Malaysian Airways Limited. In May 1966, it became Malaysia-Singapore Airlines (MSA). · In 1968, for the first time, annual revenue hit S$100 million. The sarong kebaya uniform for the Singapore Girl, designed by French couturier Pierre Balmain, was introduced and three B707s were added to the fleet. ·...
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...9-201-028 REV: APRIL 26, 2004 BENJAMIN ESTY Airbus A3XX: Developing the World's Largest Commercial Jet (A) Aviation is a great business to be in, provided you have limitless money at your disposal, limitless confidence in your ability to get everything right the 1 first time, and limitless resolve and iron nerve. EADS (Airbus) is betting the company on this aircraft. 2 On June 23, 2000, Airbus Industrie’s Supervisory Board approved an Authorization to Offer (ATO) the A3XX, a proposed super jumbo jet that would seat from 550 to 990 passengers, have a list price of $216 million, and cost $13 billion to develop. Before the Board would commit to industrial launch, the point at which significant expenditures would begin, it hoped to secure orders for 50 jets from as many as five major airlines. While Airbus had been courting potential customers for many years—in fact, development had been underway since 1990—the ATO gave the sales force permission to begin taking firm orders for the plane with delivery starting in 2006. Airbus management announced the first orders for the A3XX at the bi-annual Air Show in Farnborough, England, in July 2000. Noël Forgeard, Airbus’ CEO, reported that Air France, Emirates Airlines, and International Lease Finance Corporation had agreed to order ten, seven, and five jets, 3 respectively, and that there were another 30 orders lined up. The initial orders were a positive, though not unexpected, sign. The real question, however...
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...Boeing is the world's largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. A top U.S. exporter, the company supports airlines and U.S. and allied government customers in 150 countries. Boeing products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training. Boeing has a long tradition of aerospace leadership and innovation. The company continues to expand its product line and services to meet emerging customer needs. Its broad range of capabilities includes creating new, more efficient members of its commercial airplane family; integrating military platforms, defense systems and the warfighter through network-enabled solutions; creating advanced technology solutions; and arranging innovative customer-financing options. With corporate offices in Chicago, Boeing employs more than 170,000 people across the United States and in 70 countries. This represents one of the most diverse, talented and innovative workforces anywhere. More than 140,000 employees hold college degrees -- including nearly 35,000 advanced degrees -- in virtually every business and technical field from approximately 2,700 colleges and universities worldwide. Our enterprise also leverages the talents of hundreds of thousands more skilled people working for Boeing suppliers worldwide...
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...Japan LCC overview THE COMPETITIVE ENVIRONMENT IN JAPAN, THE WORLD'S THIRD LARGEST AVIATION MARKET, has witnessed some notable changes in recent months with some fascinating dynamics at play. Japan’s most exciting growth area is the flurry of LCC activity and new entries in the high-potential sector. ANA and JAL have jumped on the LCC bandwagon with ANA to have not one but two LCC subsidiary offerings in the form of Peach Aviation and AirAsia Japan by the end of the year and JAL establishing Jetstar Japan with oneworld partner Qantas’ subsidiary Jetstar. These start-ups promise radical change, even if their initial projected fleet sizes are modest. As a majority shareholder in both AirAsia Japan and Peach, ANA is taking the lead role in the LCC ventures, with ANA’s president and CEO Shinichiro Ito believing the time is now ripe to launch a series of new products into the market. “Japan’s aviation industry is now entering a period of rapid change. For some time, ANA has been considering carefully what action needs to be taken at this stage. One of our responses has been to invest in Peach and to establish AirAsia Japan,” he has said. However, signs are already emerging that the LCCs will have a direct impact on their parents’ operations. There are a number of factors driving the sudden entry of LCC subsidiaries in the Japanese market, most of which reflect the changing attitude of the Government as it seeks to stimulate the domestic air travel market by rectifying some of...
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...TABLE OF CONTENTS LIST OF FIGURES ................................................................................................................. ii LIST OF TABLES ................................................................................................................... ii ABSTRACT............................................................................................................................ iii CHAPTER 1: INTRODUCTION ............................................................................................ 1 1.1. 1.2. 1.3. 1.4. Introductory of the Title ........................................................................................... 1 Objective and Purpose ............................................................................................. 2 Problem Statement and Problem Solving ................................................................ 3 Limitation of the Project .......................................................................................... 4 CHAPTER 2: LITERITURE REVIEW ................................................................................... 5 2.1. 2.2. Research Theory, Ideology and Concept ................................................................. 5 Previous Research and Proposed Project Comparison........................................... 11 CHAPTER 3: METHODOLOGY ......................................................................................... 12 3.1.0 3.2.0. 3.2.1. 3.2.2. 3...
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...AeromAgAzine building better communication New Air Traffic Surveillance Technology complying with the Aging Airplane Safety rule new tool for collaboration on in‑Service issues Fuel conservation Strategies: Descent and Approach AERO cover photo: 777 APU exhaust bay. AERO contents 03 building better communication Four years ago, we reintroduced AERO magazine in response to a boeing customer support survey. late last year, we went back to you to find out how well we are doing. 07 New Air Traffic Surveillance Technology Air traffic service providers and regulators are moving toward airspace and flight operations to enable greater flexibility and adaptability along with assuring improved traffic flow, capacity, efficiency and safety. A key part is the transition from radar to ADS‑b surveillance. 07 15 complying with the Aging Airplane Safety rule new materials help operators comply with the u.S. Federal Aviation Administration’s new rule on aging airplane safety. 21 15 new tool for collaboration on in‑Service issues 21 boeing introduces a new collaboration platform that integrates two previous elec‑ tronic bulletin boards in a single application and includes a number of new features. 25 Fuel conservation Strategies: Descent and Approach 25 www.boeing.com/c o m m e r c i A l / A e r o m A g A z i n e the descent and approach phases of flight are the flight crew’s final opportunities to reduce fuel consumption...
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...the Industry 7 4. Customers 8 5. Ease of Entry/Exit 8 6. Technology/Innovation 9 7. Product Characteristics 10 A. Government 10 B. Commercial Aircraft 10 8. Scale Economies 11 A. Internal 11 B. External 12 9. Experience Curve Effects 12 10. Capacity Utilization 13 11. Industry Profitability 13 SIX FORCES OF COMPETITION 14 1. Threat of New Entrants 14 2. Bargaining Power of Suppliers 16 3. Bargaining Power of Buyers 16 4. Threat of Substitute Products/Services 17 5. Intensity of Rivalry among Competitors 17 6. Relative Power of other Stakeholders-Unions 18 COMPETITIVE POSITION OF MAJOR AEROSPACE COMPANIES 18 COMPETITOR ANALYSIS OF MAJOR AEROSPACE COMPANIES 20 Boeing Co. 20 Lockheed Martin Corporation 21 Northrop Grumman Corporation 23 Raytheon Co. 24 Other Manufacturers 25 Airbus 25 United Technologies 26 KEY SUCCESS FACTORS 26 Reducing Costs 26 Maintaining Access to Foreign Markets 27 INDUSTRY PROSPECTS AND OVERALL ATTRACTIVENESS 29 Factors Making the Industry Attractive 29 Factors Making the Industry Unattractive 31 Special Industry Problems and Issues 32 Profit Outlook 33 “Micro Jet” Airplanes 33 CONCLUSION 35 Works Cited 37 Appendix A. Aircraft Information Fixed-Wing Aircraft 38 INTRODUCTION The accomplishments and advancements in the aerospace manufacturing industry over the last century since the Wright Brothers made...
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...History (including Tasman Empire Airways Limited/Air New Zealand 1939-1978, New Zealand National Airways Corporation 1947-1978, and Air New Zealand 1978-on) issued February 2006 1939 During the months before the New Zealand, United Kingdom and Australian Governments reached agreement on the constitution of the new company, the Union Steam Ship Company accepted initial responsibility for the three Short S.30 Empire class flying boats which Union Airways had ordered for the Tasman service, and in August 1939, the incorporation of Tasman Empire Airways Limited (TEAL) - later to become Air New Zealand - was sufficiently advanced for ZK-AMA "Aotearoa" to fly to New Zealand. 1940 April 26: TEAL registered in Wellington as a limited liability company. Original holdings were: New Zealand Government 20%, Union Airways 19%, BOAC 38% and Qantas 23%. Chairman of Directors - Colonel N S Falla; Deputy Chairman - A E Rudder. The board reported to the Tasman Air Commission, which itself reported to the New Zealand, Australian and British Governments. April 30: Inaugural Auckland-Sydney flight ZK-AMA "Aotearoa", then weekly. First service commanded by Captain J W Burgess with 10 passengers. May 2: First return flight. August: TEAL increased the frequency of its Auckland-Sydney service to three times a fortnight. Connection was made at Auckland with Pan American Airways' San Francisco-Auckland flying-boat service. 1941 March 31: TEAL's first...
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...agreements • 6 Fleet o 6.1 Current fleet o 6.2 Fleet history o 6.3 Livery o 6.4 Special liveries • 7 Products and services o 7.1 Southwest experience o 7.2 In-flight entertainment o 7.3 Evolve interior • 8 Rapid Rewards • 9 Incidents and accidents • 10 Controversies • 11 See also • 12 References • 13 External links History Early history Southwest Airlines Boeing 737-200 wearing the original airline colors when landing at San Antonio in 1975 Southwest Airlines traces their roots to the March 16, 1967 incorporation of Air Southwest Co. by Rollin King and Herb Kelleher to provide service within the state of Texas.[2][3] Kelleher believed that by providing intrastate service within Texas, the airline could avoid federal regulation.[8] Three airlines (Braniff, Trans-Texas, and Continental Airlines) started legal action which was not resolved for three years. Air Southwest prevailed in 1970 when the Texas Supreme Court upheld Air Southwest’s right to fly within Texas.[9] The Texas decision became final on December 7, 1970 when the U.S. Supreme Court declined to review the case, without comment. Boeing 737-200 at William P. Hobby Airport in 1983 The story of Southwest’s legal fight was turned into a children’s book, Gumwrappers and Goggles by Winifred Barnum in 1983. In the story, TJ Love, a small jet, is taken to court by two larger jets to keep him from...
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...Value share % New airplane deliveries Large widebody Medium widebody Small widebody Single aisle Regional jets Total Market value (2012 $B, catalog prices) Large widebody Medium widebody Small widebody Single aisle Regional jets Total 2012 fleet Large widebody Medium widebody Small widebody Single aisle Regional jets Total 2032 fleet Large widebody Medium widebody Small widebody Single aisle Regional jets Total Asia Pacific 4.5 6.3 5.8 5.5 12,820 1,890 150 36 39 260 1,470 1,860 8,810 420 12,820 90 490 460 840 10 1,890 330 500 660 3,470 130 5,090 350 1,550 2,080 10,350 420 14,750 North America 2.5 2.7 3.8 1.5 7,250 810 110 21 17 30 390 760 5,000 1,070 7,250 10 130 170 460 40 810 120 290 710 3,760 1,710 6,590 60 500 1,040 6,140 1,070 8,810 MIddle East 3.8 6.3 6.6 4.7 2,610 550 210 7 11 280 670 410 1,240 10 2,610 110 220 100 120 1 550 80 270 230 500 60 1,140 250 700 450 1,420 30 2,850 Latin America 4.0 6.9 6.0 5.6 2,900 300 100 8 6 — 40 270 2,420 170 2,900 — 10 70 210 10 300 — 20 120 1,050 90 1,280 — 50 380 3,150 210 3,790 Europe 1.8 4.2 3.8 3.1 7,460 1,020 140...
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...British Airways 1 British Airways British Airways IATA ICAO Callsign BA BAW SPEEDBIRD SHT SHUTTLE[1] Founded AOC # Hubs 31 March 1974 441 • • London Heathrow Airport Gatwick Airport Executive Club Concorde Room Galleries First Galleries Club Galleries Arrivals First Lounge Terraces Lounge Executive Club Lounge International Lounge UK and Ireland Lounge Frequent-flyer program • Airport lounge • • • • • • • • • Alliance Subsidiaries Oneworld • • • • 267 169 not incl. subsidiaries and code-shares • • • To Fly. To Serve. Upgrade to British Airways (online marketing) The World's Favourite Airline (former) BA CityFlyer OpenSkies British Airways Limited British Airways World Cargo Fleet size Destinations Company slogan Parent company Headquarters Key people International Airlines Group Waterside, Harmondsworth, England Keith Williams (Chief Executive Officer) Sir Martin Broughton (Chairman) £10.827 billion (2011) www.britishairways.com [2] Revenue Website British Airways (BA) is the flag carrier airline of the United Kingdom and its largest airline based on fleet size, international flights and international destinations. When measured by passengers carried it is second-largest, behind easyJet. The airline is based in Waterside near its main hub at London Heathrow Airport. A British Airways Board was established by the United Kingdom government in 1972 to manage the two nationalised airline corporations, British Overseas Airways Corporation and...
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...SOUTHWEST AIRLINES CO. 2013 ANNUAL REPORT TO SHAREHOLDERS To our Shareholders: Our goals for 2013 were ambitious. We wanted to stay on track with our five Strategic Initiatives described below. We wanted to maintain our strong Brand, unique Culture, and award-winning Customer Service. We wanted to sustain our strong ontime performance and baggage handling. Finally, we wanted to improve our cost performance, achieve our profit requirement, and return value to our Shareholders. Just like in 2011 and 2012, an enormous amount was accomplished in 2013. As a result, we produced stellar results. Our 2013 net income was a record $754 million, or $1.05 per diluted share, including special items (primarily noncash, mark-to-market, and other items required for a portion of the Company’s fuel hedge portfolio, as well as costs associated with the acquisition and integration of AirTran). Excluding special items1, our 2013 profits were also a record, increasing 93 percent year-over-year to $805 million, or $1.12 per diluted share. Our annual pre-tax return on invested capital, excluding special items (ROIC), was 13.1 percent, nearly doubling 2012’s performance. Total operating revenues were a record $17.7 billion, boosted by strong yields and an 80.1 percent load factor. Through the combination of stable fuel prices and rigorous cost control efforts, we met our goal to improve our cost performance. Despite a roller coaster economy, we achieved record earnings; and, while just short of our...
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...Refuelling Schedule for Airports By Kiran R K Jitha Babu Shyam S Sreeraj S CHAPTER 1 INTRODUCTION 1.1 REFUELLING Refuelling is an important aspect with respect to the airports since it determines the ground time of an aero plane. Aircraft fuelling can take up to 90 minutes of ground time. Hence, precise planning and allocation is absolutely essential. Once a flight lands in an airport it has to be refueled for the next flight. The quantity of fuel required depends on the distance it has to travel to reach the next station and type of flight. Aviation fuel is a specialized type of petroleum-based fuel used to power aircraft. It is generally of a higher quality than fuels used in less critical applications such as heating or road transport, and often contains additives to reduce the risk of icing or explosion due to high temperatures, amongst other properties. Aviation fuels consist of blends of over a thousand chemicals, primarily Hydrocarbons (paraffins, olefins, naphthenes, and aromatics) as well as additives such as antioxidants and metal deactivators, and impurities. Principal components include n-octane and isooctane. Like other fuels, blends of Aviation fuel are often described by their...
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...Executive Summary The following report will determine the strategic position of Rolls-Royce and the environmental impact of a new technology upon that strategic position. The report will analyse and evaluate the role and impact of short to medium range single aisle narrow body aircraft on the strategic position of Rolls-Royce. The report will focus on the civil aerospace business of Rolls-Royce and will use Rolls-Royce Inchinnan as a base model. The Boeing 737 series and Airbus A320 are the most popular aircraft ever produced with a 737 landing in the world every five seconds. The 737 in particular will reach the end of its service life within the next ten years. Southwest airlines are requesting an overdue replacement with most airframes living thirty years, the original 737 was released in 1967. The effect of the next generation 737, released in 1998, retiring will leave a considerable gap to be filled. Rolls-Royce does not power the Boeing 737which is monopolised by Pratt and Whitney and General Electric. Should Rolls-Royce attain a share of this market it will become the largest contract ever undertaken by Rolls-Royce. The new aircraft is currently under development and is expected to form the latest of aerospace technology such as composite structures, geared turbofans or open rotor designs. All of the large aerospace manufacturers are currently vying for involvement in the programme for should the new edition emanate the previous, the returns will be substantial...
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