Airbus A3XX: A New Era for European Aviation?

Strategic Insights -

Airbus Industrie's chief executive, Noel Foregeard, unveiled the A3XX, a new double-decker aircraft, at the Farnborough Air Show, promising 10,000 highly-skilled jobs in the UK and protecting 40,000 existing jobs in over 400 UK companies. The A3XX, capable of carrying 480-600 passengers, is set to become the standard-setter for long-range travel, with a market for over 1,300 aircraft worth over £200bn over the next 20 years. The economic benefits of the project are expected to last for 40 years, generating nearly £20bn in export orders.

Key Takeaways:

  • The Airbus A3XX is a new double-decker aircraft capable of carrying 480-600 passengers, set to become the standard-setter for long-range travel.
  • The A3XX project is expected to create 10,000 highly-skilled and highly-paid jobs in the UK, and protect a further 40,000 jobs in more than 400 UK companies.
  • Over the next 20 years, there will be a market for more than 1,300 aircraft, worth over £200bn.
  • Plans to convert Airbus from a partnership into a single limited company, potentially floated on the stock market, have been delayed until mid-1999 due to partner reluctance.
  • Airbus has confirmed a 3% price increase for its aircraft, following a 5% increase announced by Boeing.
  • Boeing's president, Harry Stonecipher, apologized for delayed deliveries, attributing them to the company's arrogance and self-satisfaction.

Statistics:

  • 10,000: The number of highly-skilled and highly-paid jobs expected to be created in the UK by the A3XX project.
  • 40,000: The number of existing jobs in more than 400 UK companies expected to be protected by the A3XX project.
  • 1,300: The number of aircraft expected to be sold in the market over the next 20 years.
  • £200bn: The value of the market for the A3XX over the next 20 years.
  • £20bn: The expected economic benefits of the project over 40 years.
  • 480-600: The number of passengers the A3XX is capable of carrying.
  • 2004: The anticipated entry into service of the A3XX aircraft.

Sources:

  • Farnborough Air Show
  • Airbus Industrie
  • Noel Foregeard, Airbus Industrie chief executive
  • Gunther Rexrodt, German economics minister
  • Harry Stonecipher, Boeing's president