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OPIM 5894 Advanced Project management Airbus 3XX: developing the world’s Largest Jet. SURESH NAIR, Ph.D. Professor, School of Business University of Connecticut, Storrs, USA. http://users.business.uconn.edu/snair/opim5894.html. Airbus 3XX: developing the world’s Largest Commercial Jet.
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OPIM 5894 Advanced Project managementAirbus 3XX: developing the world’s Largest Jet SURESH NAIR, Ph.D. Professor, School of Business University of Connecticut, Storrs, USA http://users.business.uconn.edu/snair/opim5894.html
Airbus 3XX: developing the world’s Largest Commercial Jet Issues Raised • Basic economics of large projects • Large upfront expense ($13B) with uncertain returns • The complexity of estimating demand and revenue • Role of government as investors and customers Should Airbus launch this product? Prof. Suresh Nair, University of Connecticut
Airbus 3XX: developing the world’s Largest Commercial Jet Team Assignments – Team 1 • Future of Air Transportation and possible Boeing response • Evaluate how air transportation is evolving – point to point vs. hub and spoke. • Resultant demand for VLAs • Analyze Boeing’s possible competitive response to A3XX • How would Airbus decisions and Boeing’s response change due to changes in fuel prices, euro value changes? • Should Airbus launch A3XX? Prof. Suresh Nair, University of Connecticut
Airbus 3XX: developing the world’s Largest Commercial Jet Team Assignments – Team 2 • Break-even analysis • How many planes/year will Airbus have to sell to break-even? • Do they have the capacity to produce that many? • How sensitive is the B/E point to R&D and Operating Margin changes? • How does the B/E compare to B747 volumes? Prof. Suresh Nair, University of Connecticut
Airbus 3XX: developing the world’s Largest Commercial Jet Team Assignments – Team 3 • Demand Projections • How many A3XX planes do you estimate Airbus be able to sell per year? Support your answer with quantitative and qualitative analysis • What are your assumptions? • How sensitive is your estimate to these assumptions? Be as specific as possible. • What explains the wide variation in forecast for VLA Passenger aircraft between Airbus (1235) and Boeing (330) in Exhibit 6 and 8? Prof. Suresh Nair, University of Connecticut