4. General Electric Company’s Aircraft Engine Business Group (AEBG) develops and produces aircraft engines for the airline industry. The airline industry demand is driven by safety, efficiency, and economic effect. The Unducted Fan Engine (UDF) design must meet this industry’s needs and expectations. The airline industry has three main players to consider, Boeing, McDonnell Douglas, and Airbus Industrie. The UDF can provide an economic advantage to the industry. The propeller design makes small-middle sized planes more fuel efficient. Planes will require 70 percent less fuel while carrying the same number of passengers, so in turn will be able to travel farther distances. This will provide the airlines with an opportunity to offer new travel routes to their customers.
These passengers of the airline industry are the UDF’s real customers; however they are removed from the decision process by several steps. The UDF design will provide them an advantage of smoother travel with a reduce vibrations from the fan. The opportunity for the airline industry to offer new travel routes will also carry over for an advantage to passengers to plan new trips. The negatives associated with the UDF design, is the look of the design itself. The visible blades give an appealing look that does not provide passengers with a reassuring feeling. With safety being a key demand aspect in the airline industry, the blades do not satisfy this need. Demand for 150 seat airplanes, that would use the UDF design, is expected to increase in the 1990’s with the need to replace aging fleets in the airline industry. There is also potential for growth in air travel. A threat for the airline industry is that travel is highly price sensitive. As consumer disposable income increases demand for travel also increases. However, this works in opposition as well. At the same time, as the number of