International Aviation or Aerospace Industry Term Paper

Pages: 5 (1841 words)  ·  Bibliography Sources: 6  ·  File: .docx  ·  Level: College Senior  ·  Topic: Transportation

Aviation: The Expansion of Airbus

Forecasting is important to the financial success of both aircraft manufacturing and passenger airline businesses, and it is one of the most important things that Airbus has done in the past. Without forecasting, Airbus would not be clear on which countries were best to move into, what airlines would want their products, and what they were doing right and wrong to keep moving forward (Airport Technology, 2009). Forecasting fits into the aircraft manufacturing business because those that make airplanes must be aware of how many are going to be needed, but also when those particular aircraft might be wanted by various companies (Airport Technology, 2009).

In order to be able to do that, aircraft manufacturers must be aware not only of trends that are going on in the Aviation industry but also how each individual airline is faring and how much business they are doing. It is also helpful to know the age of the planes those particular airlines are using and approximately how often they decide to purchase new planes. By knowing how many planes most airlines purchase and how often, aircraft manufacturers can make certain they have enough materials on hand to meet demand without having so much inventory they end up spending too much money on storage and do not make the money back by selling airplanes to specific airline companies (Airport Technology, 2009).

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For Airbus to expand properly, forecasting is essential (Airport Technology, 2009). Having a lot of inventory sitting around is a bad choice. It costs money. However, it can cost more money if planes are needed and Airbus does not have the parts to build those planes in a timely manner. If that is the case, Airbus could lose the contract and the chance to build the planes. Fortunately for Airbus, it has become very skilled at planning and forecasting, helping the company to continue to grow and expand without undue costs. Airbus has grown in the U.S., China, Japan, Europe, and India in recent years, despite the economic problems the world has been having (Airport Technology, 2009).

Term Paper on International Aviation or Aerospace Industry Assignment

Forecasting fits into the passenger airline business, too, because passenger airline companies must have an idea of what kind of demands will be placed on them and how many individuals are going to be flying so that they can have enough planes. They also have to be sure to have schedules set out that will allow these individuals to fly where they want to, when they want to. Someone who needs to fly to a specific destination will likely pick the lowest fare, unless he needs to get there quickly or at a specific time, in which case he will choose the airline that will meet his needs. Forecasting will help passenger airlines better meet the demands of the consumer, and also help these airlines know when to contact companies like Airbus to start production on more planes (Airport Technology, 2009).

In order to stay competitive in the Asian and European markets, Airbus must continue to consider things that it would normally not consider in the American market. However, there are also similarities that Airbus will be dealing with. Not only must Airbus be aware of how many passengers fly and how often airline companies in the Asian and European markets need planes, but it must also be unaware of the different things that it has to keep doing so that it can remain competitive (Airbus, 2005).

For example, Airbus might make certain concessions to the design of seats to the food that is served on the airplanes (Airbus, 2008). The food will not matter much to the company, really, but the seat design and other things that are built into the airplane when it is manufactured will make a large difference. Even something so seemingly unobtrusive as the color and design of the interior may affect individuals when they are considering buying a plane for a specific airline company (Airbus, 2008). Airbus must study its competitors, such as Boeing, and also study the preferences of those in the Asian and European markets if it wishes to be competitive (Airbus, 2008).

Passengers who are concerned about traveling risks will check out different aircraft and different airlines to look at safety records and see which type of plane and which airline might have the best safety record (Hinton, 2009). It is a matter of concern for personal safety and would likely cause many individuals to pay more for a ticket rather than fly on a plane that might have some critical safety flaw in either its engine for its structural integrity. By having an exemplary safety record, Airbus can expect to get more orders from airline companies, and that can be true even if Airbus is not the least expensive competitor (Hinton, 2009).

Work system designs are very important to the airport baggage handling system. Thousands of people fly every day and they often take a great deal of luggage. This is especially true of travelers who are going somewhere for an extended stay or of travelers that might fly overseas or to areas where they feel they might not have all of the comforts they are used to having at home. Baggage handlers must be very aware of what they are doing and they must have a well-designed system in order to be able to meet the demands of so many pieces of luggage traveling through their hands every day and still getting to the right destination (Airport Technology, 2009).

In order to do this, they must all be very aware of how everything works and what types of systems are in place. They may use color-coded tags or other measures that will help them identify which luggage is going to which destination. Designing the terminal efficiently will help baggage handlers a great deal because they will be able to move luggage from one area to another without being concerned about it getting lost their ending up on a flight that is going somewhere other than where the passenger intended to fly.

Airbus might not think that much about luggage issues and baggage handlers, but the company should take that into consideration. How efficient and convenient their planes are -- and not just for passengers -- can also have a large impact on whether the company does well and gets a lot of orders (Airport Technology, 2009). While that might seem like something that would not really matter, an airline pays a lot of money for planes, and also has to pay a lot of money to the people who work on and with those planes. By keeping that in mind and finding ways to make the airline's job easier, Airbus can save the airline money (Airbus, 2010a). That makes it a very desirable company to work with and helps it with the expansion that it is working on.

Customer quality is also still very important, even though customers only have limited options when considering switching to a competitor (Airport Technology, 2009). There are many airlines that fly to most of the major cities so competition in this area is higher for customers, but it remains the same for airlines who are looking for companies like Airbus to build their planes. Individuals who are flying to a major hub often do not have as many difficulties finding airlines with good competitive prices and schedules that meet their needs, but they generally do not think about the planes that the airlines buy and where those come from.

Those who are interested in flying into much smaller, regional airports often have more difficulties if they want to switch to a competitor -- but the airlines still have the same choices regarding who builds the planes that they put those customers on to fly them to their destinations. These smaller hubs are often serviced by small airlines and those airlines often do not need to make as much of an effort to treat customers well, because those same customers will quickly run out of other options if they want to fly into that airport again. When the airlines need planes, though, they have a few different places they can go to. If Airbus does not treat them well, the company could lose their business and a lot of money (Airbus, 2010b). Treating customers well, no matter whether the customer is a middleman or an end consumer, is very important to companies like Airbus, because the company has so much at stake.

Managing inventory is extremely important for any aspect of an airline manufacturing company, but this is evidenced very strongly in regard to parts that do not have an extended shelf life (Airport Technology, 2009). There must always be enough on hand for aircraft to be built at that particular location. This is very important, as a lack of specific parts could cause serious delays for airlines that are relying on getting a plane at a specific time. Often an airplane that has just… [END OF PREVIEW] . . . READ MORE

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How to Cite "International Aviation or Aerospace Industry" Term Paper in a Bibliography:

APA Style

International Aviation or Aerospace Industry.  (2010, March 1).  Retrieved February 28, 2021, from

MLA Format

"International Aviation or Aerospace Industry."  1 March 2010.  Web.  28 February 2021. <>.

Chicago Style

"International Aviation or Aerospace Industry."  March 1, 2010.  Accessed February 28, 2021.