Airbus expansion to Japan

Airbus , the huge aircraft manufacturing subsidiary of EADS, a European aerospace company. Based in Blagnac, France, a suburb of Toulouse has made a huge step these last days .

Eventhough it`s market share is huge ( about 50% , shared with Boeing ) , it will soon increase rapidly . Why ? Because Japan Airlines , a major civil aviation company has ordered 31 A350  Airbus et 25 optional additional. The bill is big = about 11 billion dollars .

But what is even more impressive is that Japan Airlines used to be a great Boeing customer ( 80% of Japan airplane market ) but due to the delay of Boeing to provide its 787 Dreamliner , Japan Airlines decided to trust Airbus .

This draws a general painting of the market : in order to keep your leadership and customers ,you have to fullfill their expectations because you will always have someone else ready to catch the opportunity .

Here Boeing thought that they could rely on their leadership position in the market , to maybe concentrate on other customers or seize new opportunities , but it lost a very valuable partnership .

Sources :

http://www.radio-canada.ca/nouvelles/International/2013/10/07/002-airbus-commande-japan-airlines.shtml

http://www.airbus.com/tools/airbusfor/analysts/

 

1 thought on “Airbus expansion to Japan

  1. Cool. It’s like short-run performance versus long-run performance. Boeing maybe get short-run profits from its decision but it is very possible that the company’s profitability will be lowered because of the quit of Boeing.

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