The economic factors are positive for the EADS because of many aspects, the competition in the airplane manufacturing industry is very low, this might play a major role in the future price of the planes and also have a significant impact on the demand for the Airbus airplanes in future. Additionally, the competition might also be low in future due to the high capital required for setting up the plant responsible for the manufacturing of the aircraft, on the other hand, new entrant might also have to face some stringent laws and regulations due to the sensitive nature of the operations.
The demand for the travel in future is also forecasted to increase drastically, which is favorable for EADS because the airlines will have to acquire more planes to cope with the increasing demands.
However, the are many economic factors which are against the Airbus A380; the fact that Airbus fails to meet the delivery deadlines on many occasion may have an enormous impact on the revenues and profits of the Airbus in future. Some customers already showed their intentions of terminate their contract and association with Airbus in future because of the failure to meet the delivery dates of A380. The delays also result in the impairment of the reputation of the Airbus, and also it has to face severe penalties from customers to compensate their loss.
Social factors are also critical for the future of EADS; many countries might take the initiative to develop the local airplane manufacturing industry to reduce the dependency on the foreign companies which can reduce the demands of Airbus A380 in future. Many local customers of airlines might perceive it as unethical to travel in the jets of International Industries, and they might want to travel in the airplanes which are manufactured locally.
To maintain the performance of the aircraft it is necessary to incorporate latest technologies in the manufacturing of plane. The case study mentions that the Airbus A380 is equipped with the latest technologies. Airbus also brings various technological innovations in the Airbus A380 which plays a major role in getting the new contracts to construct Airbus A380.
It is clearly evident from the case study that Airbus spent an enormous amount of cash reserves in the research and development of its aircraft. But it might be possible that the production line of Airbus A380 is not updated with the latest technology technological obsolesce of suppliers, and A380 might be the primary reason for the delays in the deliveries of A380.
To maintain the profitability, Airbus should have to design A380 in such a manner which could result in the minimum fuel consumption which is only possible if it uses most modern technology in the production of A380. Moreover, innovation and technological advancement will also appeal the consumers to travel in the A380.
Now a day many consumers are critical of the impact of aircraft on the environment, they only want to fly in the planes which have the minimum impact on the environment. Peoples tend to boycott products which have an adverse impact on the natural environment of their countries if A380 has a massive carbon emission, the customers might not travel in the A380………………….
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