Question 1:
The aerospace is the human effort made in the field of science, engineering, and business to make possible the ability of aircrafts to fly in the atmosphere of earth and space. There has been a trend and change in the field aerospace since 1960, especially in the European Union. In the eve of 1960, European aircraft manufacturers were competing with each other as they also competed with the American manufacturers, which were already giants in the industry. In the mid 1960s, The European nations commenced negotiations which gave birth to the true European collaboration. In 1967, the French, British, and Germany governments signed a memorandum of Understanding (MoU). The MoU began the development of a 300-seat Airbus 300. The joint aircraft program was the second to have occurred in Europe after the first Concorde in which no major consortium was devised. In 1968, British and French companies, Hawker and Sud Aviation proposed a revised configuration, which was the 25-seat Airbus A250. However, in 1969, the partnership was crushed by the withdrawal if Hawker Siddeley. In 1970, the Airbus industry was officially formed following an agreement that occurred between Deutshe Aerospace and Aerospatiale France. They were later joined by CASA of Spain. The name “Airbus” was taken from a non-proprietary term which was used by the airline in 1960s. In 1977, Hawker Seddeley formed with BAC to create the British Aerospace (BAe). In 1979, BAe joined the consortium and took 20% stake in it. The alliance stayed for long until 2000 when DASA, Aerospatiale, and CASA joined to form the EADS. In 2001, BAE and EADS joined and formed the Airbus Integrated Company (Suder, 2011). The occurrences were to coincide with the development of Airbus A380 as the biggest commercial passenger jet. What drove the international integration in the industry is the need to create defense and promote cooperation and accelerating business within the European Union. Other airlines in the industry have also undergone changes in the past years. The biggest competitors of this airline are Boeing and McDonnell Douglas of the United States.
Question 2:
The European Union treaties have greatly helped the Airbus. First, the formation of the Company was a result of the treaties that took place between the EU nations. First, the company was driven by the treaties which advocated for joint ventures which served as an excellent base for consolidation. After the Second World War, the European nations were hurt, and therefore they decide to form treaties which would bring them together. Although the aerospace industry has military origins, it still realized that 70% of its turnover is from the civil market. In general, Airbus was the not only the result but also the driving element to the cross-border consolidation and treaties (Suder, 2011). First, the signing of the treaties by the EU, led to cooperation within the consortium which led to an increase in the levels of specialization among the partners countries. The countries were willing to work together because the treaties had bound them together in a core of activities. Each member country was then willing to provide qualified personnel, equipment and resources which would see the success of Airbus. There were little restrictions within the European nation members. This meant that the market of Airbus would increase because of the attractive policies among the EU states. The power of this integrated provided the opportunity in which Airbus could establish strategic cooperation agreements with firms in the member states (Airbus, 2005).
Question 3:
First, a strong Airbus implied that it produced and sold a lot of aircrafts than its competitors, the Boeing and McDonnell Douglas. Have much sales means that the EU is making much profit which improves the economy of the member states. On another hand, a strong Airbus implies that a lot of airlines are flying within the EU countries which mean that it is strengthening trade in the region. The Airbus has also paved way for any company within the EU to establish stages of its supply chain across the EU borders. This opportunity has resulted to delocalization and also tried to balance some economic differences between European States. Further, the firm has the ability to define and determine a product’s specification and how it should be marketed without considering the national barriers. Because of the integrated market, the Airbus can promote, distribute and sell its products wherever it wished without incurring extra costs. The other help provided by the Airbus to the EU is the provision of employment to over 40,000 people across the member states. Constructions take place in different plants across Europe with each plant employing a substantial number of people (Suder, 2011). Given the distance and diversity, the company is still hard to strengthen the relationships between the EU members while fostering cooperation and peace.
Question 4:
Airbus is completely a European company. It is a company that stands out from the rest in Europe. In fact it was created as a result of dominance by the United State’s companies in aircraft manufacture. It was formed to put Europe on the map which was dominated by America. The formation of the company traces back to the British company BAE and a consortium which was formed by France, Spain, and Germany. In fact, the Airbus can be referred to as the embodiment of the European Union. The production structure of the airline reflects the culture and thinking of the Europeans. In addition, different parts of the aircrafts are constructed in different parts of Europe before they are assembled in Airbus’ headquarters. The company may be argued to trans-national because some of the parts are constructed in China and Sweden. The clients who purchase the aircrafts are not only European countries but also other nations that do not make up the EU (Airbus, 2005). The people who are transported by the airlines are also not of European origin only; they encompass people from across the globe.
Question 5:
The European Union has been for year advocating for innovation and ideas. To remain relevant in the market, the company has to be innovative and produce products that match the level of technology in the world. For many years, the EU has been supporting innovation in the aircraft manufacture. Since it competes with mega-companies like Boeing, it is required that it becomes inventive if at all it is to remain in the market. There are a number of innovations seen in the Airbus Corporation. For instance, the modern designs of its Airbus ACJ Family imply that they manufacture products with standard features that brings about efficiency and cost-saving. All the Airbus aircrafts come with Category 3B autoland, which allows the aircrafts to get passengers wherever they fly (Hartley, 2008).
References
Suder, G. (2011). Doing business in Europe. Sage.
Airbus, S. A. S. (2005). Global Market Forecast 2004-2023. Blagnac Cedex-France: Airbus SAS.
Hartley, K. (2008). Collaboration and European defence industrial policy. Defence and Peace Economics, 19(4), 303-315.
