Strengths The Dreamliner is a new plane new is good in China Composite lighter and more fuel efficient Size small size, great for commuter business and point-to-point routes popular in China Price Competitive price point Weaknesses New plane no reputation, could have design flaws or mechanical problems Unknowns there are a lot of unknowns that could worry potential buyers Production Capacity always limited in this business. A backlog could drive potential customers to Airbus. Opportunities China has a rapidly growing aviation sector from 2600 aircraft to 4500 in the next five years (GTIN, 2011) Government banned carbon trading schemes, creating demand for more fuel efficient aircraft as a way to save money (BBC, 2012). Threats Heavy government intervention in the industry could curb growth (BBC, 2012). Competition Not just Airbus, but new competitors from the world's largest emerging markets like China, India and even Japan (Nolan, 2009). Economy airlines suffer during down economies and reduce their orders, and the industry has become dependent on the Middle East and Asia in recent years to offset this (Crooks & Weitzman, 2010). Fast Trains are now providing competition for airlines in China on key routes (Finighan, 2011). The implications of this analysis are that the focus on the Chinese market is justified. The Chinese air travel industry is booming, and indeed this is fueled by that country's rapid growth and the increased demand for
In the last 5 years Boeing has delivered 65% more planes then they did in 2010. Over those years Boeing’s stock returned more than $26 billion dollars worth to its shareholders and has been on a steady rise every since. The gap between Airbus and Boeing has been diminishing and the commercial market for Boeing is growing with the new improvements made to their commercial passenger jet line of planes. They have also executed more than 15 succesful production rate imcrasees since 2010. Not only did the commercial side of the company grow but the defense side has grown and improved substancially. Since 2010, the military aircraft and satilites division has grown over 57% and has continued to rise with the recent launch of their remote satilite which can be launched from the bottom of a fighter
In today’s business industry, the globalization process has become an important aspect and fundamental force. The elements that contribute to globalization is the environment, culture, regulation and technology and production. While the advancements globalization has increased greatly, so has the advancements in airline industry with their aircraft (Shevell, 1999). Globalization also provides a great amount of potential profits to nations and their corporations (Button, 2008). Air transportation has evolved into a major industry (Kroo, 1999). The airline industry’s continuously grows and is facilitated through its international investment, tourism, world trade and economic growth (Kroo, 1999).
The latest Airbus Global Market Forecast (GMF), released in December 2010, shows that key drivers for the marketplace are the replacement of aircraft for newer more eco-efficient models in mature markets, dynamic growth in new emerging markets, the further growth of low-cost carriers – particularly in Asia-Pacific and Europe, further market liberalisation and capacity growth on existing routes.
• Provide background on the global industry • Present a regional analysis • Discuss current and future evolvement of the industry (trends) • Discuss challenges and strategies impacting the industry • Discuss the new breed of airlines • Discuss why airlines fail and how to achieve success
The International Airlines industry will benefit over the next five years, as the number of tourists significantly rises up every month. Especially, there are more and more people from China are visiting Australia, which will provide Qantas with a great revenue. However, the competitors of Qantas, with low-cost tickets, can have a big pressure on Qantas and lead to decrease in price. Although, there will be a greater demand from Australians and international travellers to purchase tickets from this industry. The demand of the company is planning to rise at an annualised 1.2% over the next
procurement and deployment engine for the new Boeing 787-800/900 Dreamliner as of 2011, and the aircraft passed its subsequent FAA Airworthiness certification phase previously with these said engines in 2009. It’s now been retrofitted to the newly re-designed Boeing 747-800 and it continues to be at the forefront of aviation engines in terms of fuel pollution, emissions, power and design. The GEnx engine is a dual rotor, High Bypass Turbofan Jet Engine, which provides axial flow for propulsion up to 100 000 lbs of thrust per engine at Full Throttle. It incorporates a fully composite fan casing, and subsequent fan blades to reduce weight and lower fuel consumption. It also markets itself as reducing up to 15% of fuel emissions of the standard
The global aviation business is showing extensive growth with foreign flag carriers in Asia-Pasific and the Middle East transporting more passengers to or/and from
The notion of flight – of traversing the vast highway of the skies – was once a dreamlike idea that was invigorated into reality in 1903, when Orville Wright piloted the first powered aircraft a mere twenty feet above the sandy shores of North Carolina. The subsequent century expanded upon his success, innovating airplanes and developing a booming industry founded upon air travel. It is thus valid to assume that, globally, we as a civilization have changed how we live and experience the world as a result of the airline industry - we are able to settle, travel, and conduct business in places once deemed remote and inaccessible, and our world is undoubtedly more interconnected. Traveling by air has become a commonplace service, altering our perception of distance and diminishing travel time, and the industry is continuously making efforts to improve and advance.
Among this country’s greatest strengths has been its economic structure and diversity. As citizens and business professionals, we owe a lot of this to the Constitutional system of government. With a balance of power between the states and the Federal government, this country is ripe for economic development. Wall Street is one of our country’s icons, and affluent business tycoons such as Donald Trump, J. Willard Marriott, Sam Walton, and Warren Buffett receive celebrity status. This economic strength has carried us through war and peace. In fact, images of Rosie the Riveter represent how we secured the home front during World War (National Park Service). More recently, it was economic strategy (and this country’s
The aviation industry has been different however, as to date; it has mainly been dominated by two main Western players Boeing and Airbus. Now that China has also entered the Aviation industry, it will not be fool hardy to say that the Aviation industry is bound to undergo another transformation.
Weaknesses that Airbus has, is that due to their structure, and having a multi country consortium, they were slow to make decisions. In the 1980’s Airbus experienced difficulties in financing the A-320 project, since all the Airbus partner governments had not approved the program (Carpenter, M. A., & Sanders pg. 613). Airbus was slow in its decision making process because the partners of the consortium tried to safeguard its own interests rather than make decisions that would benefit them as a whole (Carpenter, M. A., & Sanders pg. 613).
In the past 10 years, the demand of travelling between Australia and China keep increasing at a high rate, especially after 2009 (fig 1) [International Airline Activity—Time Series. 2015]. Due to the rise in demand, major airlines such as Qantas China Eastern and China Southern have a massive expansion in terms of no. of flights and route network. With annual passengers of around 850k, China has become a key source market for Australia. Airports are also trying to attract Chinese travelers. For example, in Sydney airport every Chinese New Year, Terminal 1 would celebrate with Chinese-Themed declaration, launching simplified Chinese site and deployed Chinese-speaking Ambassadors to assist Chinese customers in Terminal 1. China aviation industry is absolutely one of the largest and fastest growing economies.
Airbus has already taken most of the market share that was previously held by McDonnell Douglas, raising its market share to 30%. With the introduction of new aircraft similar to the 747, Boeing is likely to loose a further percentage. The industry is growing and orders are continuing to grow, however, the industry is very cyclical and it is important for Boeing to maintain its clients and relationships to protect themselves in the event of an industry downturn. Boeing must continue to try to differentiate itself from Airbus via new technology despite the fact that Airbus will likely be able to match the technology in short period of time with the large subsidies they receive from European governments.
Abstract: China 's aviation market was extremely low in 2009 because of the ravages of the global economic crisis, especially in civil aviation industry. Even the state-owned aviation enterprises was not
International Air Transport Association estimates the number of people flying in Asia will rise by 360 million to one billion in 2014. The