airbusa3 xx, p f case final

AIRBUS A-380AIRBUS A-380Nishant Chauhan (smba08294)

Deepak Nagar (smba08287)

THE BENCHMARK FOR FUTURE AVIATION!!!

Airbus Industry

• It was founded in 1970 with consortium of principal aerospace companies of Germany(DASA), France(AM), England(BAE) and Spain(CASA).

• Host government had interest in the consortium because of 37,000 workers are employed and provided military aircraft and space system.

• European partners merged into a new company in July 2000 know as European Aeronautic Defense and Space Company (EADS).

• Later on EADS and BAE had a share of 80% and 20% respectively.

TYPE Airliner

MANUFACTURER Airbus

MAIDEN FLIGHT 27th April 2005

PRIMARY USER Singapore Airlines

PRODUCED 2002 - Present

NUMBER BUILT 12 as on January 2008

PROGRAM COST $17.1 Billion

FEATURES

• The Airbus A380 is a double-deck, four-engine airliner manufactured by the European corporation Airbus.

• The A380 has approximately 633 sq m of cabin area, the upper deck has 300 sq m and the main deck has 333 sq m.

• The A380's upper deck extends along the entire length of the fuselage. This allows for a cabin with 50% more floor space and provides seating for 555 people in standard three-class configuration.

• There are ten fuel tanks with a capacity of 1,31,000L of fuel. Refueling can be carried out in 40mins.

Take off on her maiden voyage – April 27th 2005. First time the wheels lift off the ground from Toulouse, France.

AIRBUS A380

Airbus used similar cockpit layout, procedures and handling characteristics to those of other Airbus aircraft, to reduce crew training costs. Accordingly, the A380 features an improved glass cockpit and displays 15-by-20 cm liquid crystal displays, all of which are physically identical and interchangeable.

COCKPIT

The A380 has cabins on the upper and lower decks, with 50% more floor space for 35% higher seating capacity. A three-class layout provides 555 seats. A typical upper deck layout provides 96 business and 103 economy-class seats. The lower deck provides 22 first-class seats and 334 economy-class seats.

UPPER AND LOWER DECKS

22 FIRST 334 ECONOMY

96 BUSINESS 103 ECONOMY

TOTAL : 555 SEATS IN 3 CLASSES

LOWER DECK :

UPPER DECK :

THREE CLASS CONFIGURATION

First Class Business Class Economy Class

Normal sitting style Stretched bed seat style

First Class seat can be transformed into full flat bed for a good night sleep. Innovative design of bed enhances sleeping comfort and also allows passengers to watch T.V. , access Internet or eat in their bed.

First Class Interior

The Business Class Interior-A380 offers new levels of comfort with wider seats, individual armrests and extra legroom. Business class seats are about 1 inch wider than Economy class.

The Economy Class Interior –Offering about a third more seating and far more available space than its closet competitor 747, A380 have wider seats and open space for passengers to stretch their legs.

With twin decks running along the length of the plane, there are staircases at the front and rear.

A stairway between two levels of the Airbus A380's first class

The Curvy Cocktail Bar In cozy seating alongside the windows, small groups of guests can also enjoy audio and video programs on demand, including computer games and immediate access to a wide range of high-quality movies stored digitally on the system's servers apart from enjoying cocktails.

Higher Capacity

35% more passengers

Massive gains in economics

15% lower cost/seat

20% lower cost/pound of cargo

A380 BENEFITS

Passenger Comfort

More space per passenger

Longer range

More payload on critical routes

Social Benefits

• Employment– Producing 8000 new jobs for British Citizens.

– Saving 20,000 jobs across British Aerospace Industry.

• Tax Rate– The tax rate of 38% included component of “Social

Contribution”.

• Other Benefits– Greater security and evacuation facilities.

– Stringent abiding to noise and emission standards.

•The A380 produces 50% less cabin noise than a 747 and has higher cabin air pressure (equivalent to an altitude of 1500 metres versus 2500 metres); both features are expected to reduce the effects of travel fatigue.

•The upper and lower decks are connected by two stairways, wide enough to accommodate two passengers side-by-side.

•In a 555-passenger configuration, the A380 has 33% more seats than a 747 and 50% more cabin area and volume resulting in more space per passenger.

•Compared to a 747, the A380 has larger windows and 2 feet of extra headroom. The wider cabin allows for 19 inch wide economy seats instead of 17 inch seats on a 747.

COMPARISON BETWEEN AIRBUS A380 & BOEING 747

The A-380 offers better take-off and landing performance than the Boeing 747

A - 380

Boeing 747

A - 380

Boeing 747

Take – off : 9,800 ft

Take – off : 11,600ft

Landing : 6,900 ft

Landing : 7,400 ft

1800 ft less

500 ft less

Shorter distance means less noise exposure outside the airport boundaries

How Boeing would respond?

• Develop a stretch version of 747.

• Reduce prices on 747.

• Develop a super jumbo.

• Ignore threat; improve existing product line.

New BOEING 797 -- INCREDIBLE!

The new 797 is in direct response to the Airbus A380 which has racked up 159 orders, but has not yet flown any passengers. Boeing decide to kill its 747X stretched super jumbo in 2003 after little interest was shown by airline companies, but has continued to develop the ultimate Airbus crusher 797 for years at its Phantom Works research facility inLong Beach , Calif.The Airbus A380 has been in the works since 1999 and has accumulated $13 billion in development costs, which gives Boeing a huge advantage now that Airbus has committed to the older style tubular aircraft for decades to come. 797 a tremendous 8800 nautical mile range with its 1000 passengers flying comfortably at mach .88 or 654 mph (+-1046km/h) cruising speed another advantage over the Airbus tube-and-wing designed A380's 570 mph (912 km/h).

The Boeing company• Forefront in the civil aviation for over half a

century.

• Sales of commercial aircraft accounted for 2/3rd of revenues.

• It is the largest contributor to the US balance of Payments in terms of exports.

• Its launch of 747 over 707

Forecasting Demand• Both Airbus and Boeing prepare 20-year forecasts

for commercial aircraft.

• Annual passengers growth rate by Airbus – 4.9%, Boeing – 4.8% for 2000-2019.

• Huge contrast in the VLA market between two companies.

• Airbus forecast demand for 14,661 passenger aircraft and 703 new air freighters till 2019.

Financing

Analysts’ Report

• Cost might reach $15 billion.

• Price of each plane would be $225 million.

• Magnitude and composition of up-front investment (how much is expensed and how much is capitalized and depreciated).

• AIC’s tax rate of 38% was not clear.

• Operating margins of 20%-30% is low for VLA.

• Disagreed on IRR of 15%.

Financial Analysis

A380 Case Study.xlsx

Miscellaneous Calculations.xlsx

Some of the biggest in the world

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