The following case study “Early Phase and Development of Airbus” tends to comprehend the various factors that have contributed to the current exalted status of Airbus in the market. Airbus has had a long drawn and illustrious history…
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The name Airbus was taken from a generic term used by the Airline industry. One of the other reasons for choosing the name was the linguistic acceptance of the name to the French. Initially, the stakeholdership of the company was distributed between a number of players. Aerospatiale had 36.5% of the controlling stake in the company, whereas Deutsche Airbus also had a 36.5% share in the company. This pattern was evident in the company due to the multifarious origin. The other stakeholders were Hawker Siddeley with 20% and Fokker-VFW with 7%. A major change came in the year 1979 when the British Aerospace acquired 20% stake in the company
The A-300 was the first Commercial Airline to come out of its stable. The work of the development of each of parts was given to separate countries (that, in turn, is routed to the various companies in the consortium). Initially, the sales of the aircraft were extremely slow, but later the sales of the aircraft picked up considerably. This was mainly due to the development of subsequent superior models of Aircraft as well as the innovative marketing strategies used by the company
The fact the Airbus was a consortium a number of companies were working against it. The group companies were not ready to divulge information on the technical breakthroughs. The attempt on the part of the companies to maximize the prices on the transfer of the sub-assembled parts had detrimental effects on the financial fortunes of the company. Secondly, the Company was in a stage where it was developing a large number of new aircraft to fend away competition from the other players as well as to augment market share. In the early half of 1990, a lot of steps were taken on an executive level to merge the various entities of the various companies to ensure a smoother environment for the purpose of decision making (Matthew, 1997).
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