Question 1:When Airbus was set, up, it failed to attract customers and did not get any orders over a period of 18 months. Discuss the problem faced by Airbus initially, and analyze the strategies adopted by the company to overcome them.

Answer :“When Airbus was set up, it failed to attract customers and did not get any orders over a period of 18 months”.

The Power of Trinity

1. Airbus was formed by a government initiative between France, Germany and UK in 1967.

2. Name Airbus → refer to non-proprietary terms used by the airlines industry in the 1960s to refer a commercial aircraft of certain size and range (was acceptable to the French linguistically).

3. The summary of the share in the consortium is as follows:

French Germany British Dutch Spain

Year Aerospatiale Deutsche Airlines

Hawker Siddeley

Fokker VFW

CASA Total %

1967 36.5 36.5 20 7 1001971 47.9 47.9 4.2 1001979 37.9 37.9 20 4.2 100

The Battle of 300

1) The first product from Airbus was the A300 in 1974.

Roger Béteille was appointed technical director of the A300 project.

FRANCE – manufacture cockpit, flight control and lower section of fuselage.

HAWKER SIDDELEY – manufacture wings.

GERMANY –make the forward and rear fuselage sections as well as the upper section.

DUTCH –make flaps and spoiler

SPAIN –horizontal tailplane.

2) The A300 is a wide-body craft with twin engines and twin aisles. This is in line with the demand for such aircraft from the airlines industry.

3) There were no orders for the A300 for around 18 months due to:a) 1973 Oil Crisis

b)

4)