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Explore the current market overview and strategies for superjumbo aircraft like Airbus A380 and Boeing Sonic Cruiser. Analyze trade issues, order statuses, and future trends in the aviation industry. Discover how fewer, larger aircraft can reduce congestion and operational costs.
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Superjumbos Prashant Chopra Jenny Gordon Timothy Richter Aaron Rosenberg Katerina Vrettou
Agenda • Market Overview & Current Strategies • Trade Issues • Current and Future Situation • Conclusions • Q & A
RationaleforSuperjumbo • Fewer, larger aircraft will reduce airspace and airport congestion • Airlines will achieve lower operating costs
Boeing Cedes Market to Airbus • Airbus effectively signaled commitment • Companies have different market forecasts
Current Strategies • Airbus A380 • Delivery scheduled for 2006 • Validated by Boeing’s retreat • Boeing Sonic Cruiser • Betting on increased demand for smaller, faster jets
Trade Issues • 1992 EC –US Bilateral Agreement on Trade in Large Aircraft • Direct vs. indirect subsidation • 1994 Uruguay Round Agreement • Current status
Current Situation • Order status (A380) • Firm orders: 62 • Options: 60+ • Sonic Cruiser • Exists on paper only • No orders
Current Situation • Some airports being expanded • Dubai • Singapore • Schiphol (Amsterdam) • Hong Kong • Engines • GP 7000 series (GE / Pratt & Whitney alliance) • Trent 900 series (Rolls Royce)
And Now… • Success factors • A380: acceptability • Airports • Airlines • Load factor • Sonic Cruiser • Feasibility • Time factor
Conclusions • Boeing/Airbus pursuing different segments • This opens two segments for us as an engine manufacturer • We’re ready for both • It doesn’t appear that trade issues will affect this situation