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Case MW
Airbus A3XX.
To: Airbus management
From: Yuxiang Fan, Da Luo, Di Jia,
Tiantao Zheng
Business Overview
Airbus Group SE is a European multinational aerospace and defense corporation. The
company operates through Airbus, Airbus Helicopters, and Airbus Defense and Space
segments.
Boeings response
From Boeings perspective, they could have several options to respond Airbus strategy of
developing A3xx. Boeing could start to develop their own VLA to compete against A3xx.
However, this approach would not be recommended as Boeing believes that the investment
was too high. Cutting existing 747s price to compete would not be recommended either since
profit margin would be lower. Alternatively, Boeing could compete by developing new point-topoint routes. If Airbus decided not to develop A3xx, Boeing should still its development of
point-to-point route if there were no other available projects available.
4. jiadi
Appendix
Table 1 Discount Cash Flow and Depreciation analysis