This case explores Airbus’s immediate business concerns and management consideration of a new business model that will position the company for long-term success. Airbus experienced a rough 2007—a competitive onslaught from Boeing, delays with product launches, a newly launched restructuring program named Power8, and mounting political pressure. Louis Gallois had been CEO for less than a year, but he already felt like a veteran in his role. These were the immediate concerns, but he also believed that Airbus needed a new business model for the future, and he was committed to positioning the company for success. He wanted to make sure that short-term tactics did not adversely affect the long-term structure of the industry.
Airbus and Boeing: The Fight for Hegemony
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After reading and discussing the material, students should:
- Describe the similarities and differences between the military and commercial aircraft industries.
- Explain why global governments considered the aerospace industry so important.
- Delineate the steps in commercial aircraft development and launch.