Airbus 2022: Smooth Skies Ahead?

The case study is set in 2022, at a time when the CEO of Airbus Group was analysing the strategic situation of the company after the second consecutive year of the COVID-19 pandemic. By the end of 2021, market trends indicated that the industry was on the road to recovery; Airbus ended the year on a high note, capturing a flurry of orders, allowing them to surge ahead of Boeing before the year end. The case study begins with a summary of the creation of Airbus at the beginning of the 1970s as a pure political decision from different European governments, which did not want to lose influence in the aircraft industry to the rising power of the United States (US). Then, it provides a detailed analysis of the commercial strategy of Airbus and the evolution of its product portfolio from one single narrow-body airplane in 1970, the A300, to a complete range of aircraft in 2015, from small to large aircraft, including the A380, the biggest commercial airplane in the world. The case study continues with a description of the industrial organization of Airbus, in terms of which the main characteristic is a complex supply chain spread throughout Europe. Then, the case study examines the importance of innovation and sustainability at Airbus, before providing a detailed depiction of Airbus' airline customers and their behaviour when considering the purchase of an aircraft. The next part of the case study is a thorough analysis of Airbus competitors for narrow-body and wide-body aircraft with a focus on Boeing, which is the main competitor of Airbus. The case study discusses the future of aircraft manufacturers in the next 20 years, based on the market trends and the strategic intentions of Airbus and Boeing. The case study concludes with the strategy outlined by the CEO of Airbus to guarantee that Airbus rides the momentum it has gained to continue to outperform Boeing and increase its market share.