Traveling by plane has become integral to many people’s lives as it is convenient, fast, and safe. As demand grows, so does supply, which is why there is competition in the airline market, with Boeing and Airbus holding leading positions. The environment is changing, and any changes can have disastrous consequences for major airlines; in other words, airlines should be prepared for them. Airbus management has demonstrated its flexibility, market understanding, and ability to adapt to an ever-changing and complex environment, which has helped the company survive despite setbacks and continue to operate successfully despite the challenges of a changing world.
Firstly, Airbus offers a wide range of aircraft that meet the needs of different market segments. This is why their failure with the A380 was not a complete failure. The company produces narrow-body aircraft famous for point-to-point routes and large wide-body aircraft for long intercontinental flights (Xuesong and Bhattacharya, 2021). This allows the company to adapt to changes in demand and spread risks. Airbus’ flexibility in producing different aircraft types provides it with resilience and risk extension.
What’s more, Airbus has a long history in the aviation industry and a deep understanding of market needs and trends. The company maintains close contact with its customers by working with airlines and listening to their requirements, which helps ensure that Airbus products remain competitive. Its presence in the international market provides the company’s sustainability and growth.
The growth of the Chinese market and large orders from airlines have supported Airbus internationally (Xuesong and Bhattacharya, 2021). In summary, Airbus has successfully stayed afloat by understanding market needs and working closely with airlines to help it remain competitive while maintaining the enormous Chinese market and winning significant airline orders. This has contributed to the company’s sustainability and international growth.
In addition, Airbus actively invests in research and development to stay ahead of the curve in aviation technology. The company has three ideas for environmentally friendly aircraft that are relevant today. These aircraft use hydrogen as the primary fuel, intending to achieve zero emissions by 2035(Xuesong and Bhattacharya, 2021). Hydrogen as energy meets modern environmental requirements and market needs. Investments in research and development are therefore helping Airbus to stay at the forefront of offering environmentally friendly hydrogen-fuelled aircraft.
The aviation market is competitive and constantly changing. Airbus and Boeing are the two leading players in this market. Although Airbus has faced challenges and unprofitability with its A380 aircraft, it remains competitive. Due to its wide range of aircraft, production flexibility, and deep understanding of market needs, the company remains at the forefront of aviation. In addition, active investments in research and development allow the company to meet environmental requirements.
The ban on Boeing’s B737 MAX aircraft has also given Airbus a market advantage, while the Chinese market’s growth and its aircraft’s popularity support its international presence. Analysts foresee continued competition between the two manufacturers, especially in developing environmentally friendly technologies and meeting the changing needs of passengers and airlines. Overall, the aviation industry continues to evolve and adapt to new challenges, creating attractive prospects.
Reference List
Xuesong, G. and Bhattacharya, L. (2021) The rise and demise of airbus A380. Singapore Management University.