Turbulent flight for Airbus: Will airline giant descend or climb?

Abstract

Purpose

This paper reviews the latest management developments across the globe and pinpoints practical implications from cutting‐edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

On the face of it, the last decade or so has been pretty kind to Airbus. The European airline manufacturer has regularly outperformed US rival Boeing and has seen its market share almost triple from 1995 levels. The impending arrival of the A380 would provide the icing on the cake. However, a succession of hitches has plagued the project and helped confirm suspicions that not everything in the garden is rosy. But Airbus has stubbornly refuses to acknowledge any difficulties – at least publicly. The company has continued to present a united front even though there is widespread awareness of the conflicts within its ranks. Much of the unease is down to the pan European composition of Airbus, with French, German, Spanish and British companies incorporated within parent organization European Aeronautic Defence & Space Co. (EADS). Although the 1999 formation of EADS was supposed to nip such rivalries in the bud, it has effectively only served to aggravate them. The dual French‐German management structure of the parent company has heightened cross‐nation rivalries, while fierce power struggles between French executives has provided another unwelcome distraction.

Originality/value

Provides strategic insights and practical thinking that have influenced some of the world's leading organizations.

Citation

(2007), "Turbulent flight for Airbus: Will airline giant descend or climb?", Strategic Direction, Vol. 23 No. 9, pp. 11-14. https://doi.org/10.1108/02580540710779708