With over €20bn of turnover in 2004, Airbus is arguably Europe’s largest corporate success story. It is owned by BAE Systems (20%) and EADS (80%). On paper, the multi-European joint venture appears as logistic nightmare: 16 manufacturing sites spread over four countries and each site is responsible for a completed section of the aircraft. Finished and semi-finished parts are flown from one site to another for final assembly in France.
Airbus relies on some 1,500 contractors, half of which are European companies while US companies make up another 40%. Airbus groups its suppliers into core applications. Airbus recently initiated a fifth family of aircraft with the military A400M programme. Assembly will be in Seville and deliveries scheduled for 2008. Airbus delivered 320 aircraft last year and forecasts deliveries will climb to 380 units by 2006, helped by the roll-out of the A380.
For 2005, Airbus claims 350 firm deliveries. Mid-cycle delivery levels are about 700-800 aircraft a year (see bar chart).
In the future, the group’s profitability will be boosted by lower R&D spend, which had ballooned to nearly €2Bn, or 10% of turnover, now that the A380 is complete. The group has also initiated a €1.5Bn restructuring programmed, nicknamed Route 06. Savings of €350M are targeted for 2005.
Airbus and Boeing Deliveries
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