The document discusses Airbus's plans to develop the A3XX, which would be the world's largest commercial jet. It provides background on industry trends favoring larger aircraft, as well as Airbus and Boeing's business models. While a very large aircraft could offer economies of scale, surveys show customer preference for smaller craft. Financial projections estimate an $13 billion cost, with government support contributing. The viability of the A3XX is questioned given capacity challenges and customer preferences.

1. Airbus A3XX:Developing the World’s LargestCommercial Jet Presented By: AkashJauhari – DCP056 AlokMishra – DCP057 Karan Verma – DCP072 LokeshChaudhary – DCP075 RaghavAgarwal – DCP087

2. Airline Industry – An Overview Highly competitive Capital and Labor intensive Seasonal industry – increased revenues in 2nd and 3rd quarters Sensitive – Fuel Prices, Price of airfares and customer demand

5. Fuel

6. MaintenanceCosts are also attributed to flight time, flight distance, landing fees, en-route charges, handling, administrative costs and opportunity costs of not flying.

12. Flagship of Boeing fleet :-747-400, held 420 passengers in the standard three-class configuration.

14. DASA—Germany

15. BAE Systems—England

16. Aerospatiale Matra –France

17. CASA—Spain

19. Revenue: €27.45 billion (FY 2008)

20. Known for producing and marketing:-First commercially viable ’fly-by-wire’ airliner, the Airbus A320, and World's largest airliner, the A380.

22. The A380 is a true double Decker while the B747 is not.

23. The A380 can accommodate 33% more passengers than the B747

24. The A380 has more powerful engines than the B747

26. Customers seem to want more comfort but are not willing to sacrifice speed and price for it.

27. Airbus tends to treat these changes by designing large aircraft and tinkering with them to adapt them to the market, while

29. Its all about money honey?

32. Usage of fly-by-wire technology (reduce costs)

34. slower evacuation time

35. landing fees of plane is determined by weight

37. Increasing demand for small & medium capacity planes

38. B747 bought for its range and not its capacity

40. More direct routes that bypass major hubs

41. E.g.. Manchester - Chicago route

42. Limit to how much plane size can increase

43. Safety, fuel consumption, slower turnaround time etc

44. In Asia, lack of urban centers BUT, more point to point by using smaller planes that’s compatible with smaller airports

46. 3 planes of a higher range of 8000 m and above

47. B747, A340-500 ,B777

49. Base: All Respondents (Survey done by Boeing on General Preferences) AIRPLANE PREFERENCES BY REGION U.K. Hong Kong Tokyo Plane preferences for non-stop flight % % % Economy Business Travelers preferring 250-passenger airplane 65 54 64 Economy Business Travelers preferring 550-passenger airplane 21 40 22 Economy Leisure Travelers preferring 250-passenger airplane71 60 63 Economy Leisure Travelers preferring 550-passenger airplane17 37 28 Preferences for direct flights via smaller plane vs. transit flights involving larger plane Economy Business Travelers preferring 250-passenger airplane 73 75 76 Economy Business Travelers preferring 550-passenger airplane 14 19 11 Economy Leisure Travelers preferring 250-Passenger airplane80 81 78 Economy Leisure Travelers preferring 550-passenger airplane9 16 11

51. orders for the A340 remained strong at 118

52. If the B747 was in demand more for its seating capacity and not its range

54. A3XX has a higher list price and 12% more operating cost per flight as compared to the B747,

57. Airline industry increasingly more competitive

58. Harder to achieve decent PLF

61. Operating margin of 15 – 20%.

62. Tax rate = 38%.

65. MARKET TESTING

68. RECOMMENDATIONS

69. THANK YOU