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Airbus

To pioneer sustainable aerospace for a safe and united world by building the first zero-emission commercial aircraft by 2035



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Align the strategy

Airbus SWOT Analysis

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To pioneer sustainable aerospace for a safe and united world by building the first zero-emission commercial aircraft by 2035

Strengths

  • PORTFOLIO: Diverse product range across market segments
  • BACKLOG: €449B order book providing 7+ years visibility
  • TECHNOLOGY: Leading sustainable aviation innovation
  • SERVICES: Growing aftermarket revenue from 14,000 aircraft
  • PARTNERSHIPS: Strong government and supplier alliances

Weaknesses

  • SUPPLY: Ongoing supply chain disruptions limiting ramp-up
  • DEPENDENCE: Reliance on A320 family for 70% of profits
  • COMPLEXITY: Manufacturing footprint across multiple nations
  • COMPETITION: Price pressure in key single-aisle segment
  • WORKFORCE: Challenges in recruiting specialized talent

Opportunities

  • DECARBONIZATION: Growing demand for sustainable aircraft
  • SERVICES: Expanding digital services & aftermarket growth
  • ASIA: Projected 40% of new deliveries in Asia-Pacific
  • DEFENSE: Increasing European defense spending post-Ukraine
  • URBAN AIR: Emerging urban air mobility market with CityAirbus

Threats

  • BOEING: Recovery of 737 MAX and new midsize aircraft
  • COMAC: Chinese C919 entering service with growing presence
  • GEOPOLITICS: Trade tensions affecting market access
  • REGULATIONS: Stringent emissions targets raising costs
  • PANDEMIC: Potential for future air travel disruptions

Key Priorities

  • DECARBONIZATION: Accelerate zero-emission aircraft program
  • SUPPLY CHAIN: Strengthen resilience and capacity
  • SERVICES: Expand digital aftermarket solutions
  • DEFENSE: Capitalize on European defense investments
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Align the plan

Airbus OKR Plan

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To pioneer sustainable aerospace for a safe and united world by building the first zero-emission commercial aircraft by 2035

ZERO EMISSIONS

Lead aerospace sustainability transformation

  • HYDROGEN: Complete ZEROe demonstrator flight testing with 5 successful tests by Q4
  • SAF: Increase sustainable aviation fuel compatibility across all aircraft models to 100% by Q3
  • PARTNERS: Establish 3 new hydrogen ecosystem partnerships with energy companies and airports
  • EMISSIONS: Reduce manufacturing carbon footprint by 15% through renewable energy adoption and process optimization
SUPPLY RESILIENCE

Build robust, agile supply chain ecosystem

  • CAPACITY: Qualify 25 new tier-2 suppliers for critical components to reduce single-source dependencies
  • VISIBILITY: Deploy digital supply chain monitoring platform to 85% of tier-1 and tier-2 suppliers
  • INVENTORY: Establish strategic buffer stocks for 150 most critical components with 8-week coverage
  • AUTOMATION: Implement 12 new robotic systems across production facilities to increase throughput by 20%
DIGITAL SERVICES

Expand high-margin aftermarket solutions

  • SKYWISE: Increase airline customers using Skywise platform from 130 to 175 with 95% retention rate
  • PREDICTIVE: Deploy predictive maintenance solutions across 3,500 aircraft, reducing AOG by 15%
  • REVENUE: Grow services revenue by 18% year-over-year through new digital product offerings
  • TRAINING: Launch 5 new digital training modules with adoption by at least 40 airline customers
DEFENSE GROWTH

Capitalize on European security investments

  • EURODRONE: Secure €2.5B in additional contracts for European MALE RPAS program with 3 countries
  • FCAS: Complete Phase 1B of Future Combat Air System with successful demonstrations of 2 key technologies
  • SPACE: Win 3 new government space contracts valued at €800M+ for Earth observation and connectivity
  • HELICOPTERS: Increase military helicopter orders by 25% with focus on H145M and H225M platforms
METRICS
  • Aircraft Deliveries: 720 commercial aircraft
  • EBIT Margin: 8.5%
  • Free Cash Flow: €4.5B
VALUES
  • Safety
  • Quality
  • Integrity
  • Innovation
  • Sustainability
  • Diversity
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Align the learnings

Airbus Retrospective

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To pioneer sustainable aerospace for a safe and united world by building the first zero-emission commercial aircraft by 2035

What Went Well

  • DELIVERIES: 735 commercial aircraft deliveries in FY2022
  • ORDERS: 1,078 new commercial aircraft orders (net)
  • SERVICES: 15% growth in services revenue year-over-year
  • CASH: Free cash flow before M&A increased to €4.3 billion
  • DEFENSE: 13% increase in Defense & Space order intake

Not So Well

  • SUPPLY: Persistent supply chain and logistics challenges
  • RAMP-UP: A320 production targets delayed by 6-12 months
  • MARGINS: Commercial aircraft EBIT margin below target
  • HELICOPTERS: Flat revenues despite market recovery
  • INFLATION: Rising costs pressuring supplier relationships

Learnings

  • DIVERSIFICATION: Need for broader supplier qualification
  • DIGITALIZATION: Digital tools critical for supply visibility
  • INVENTORY: Strategic component stockpiling beneficial
  • TRAINING: Skills gap emerging in specialized positions
  • ADAPTATION: Nimble production planning essential

Action Items

  • SUPPLIERS: Deepen strategic supplier partnerships
  • INVENTORY: Secure critical components and materials
  • WORKFORCE: Accelerate recruitment in key shortage areas
  • EFFICIENCY: Implement additional cost reduction measures
  • RESILIENCE: Enhance business continuity planning
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Overview

Airbus Market

  • Founded: December 18, 1970
  • Market Share: ~50% of global commercial aircraft market
  • Customer Base: Airlines, governments, defense organizations
  • Category:
    Aerospace, Defense
  • Location: Toulouse, France
  • Zip Code: 31700
  • Employees: 134,267 employees worldwide
Competitors
Boeing logo
Boeing
Lockheed Martin logo
Lockheed Martin
Bombardier logo
Bombardier
Embraer logo
Embraer
Leonardo logo
Leonardo
Products & Services
No products or services data available
Distribution Channels
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Align the business model

Airbus Business Model Canvas

Problem

  • Airlines need fuel-efficient reliable aircraft
  • Growing pressure to reduce aviation emissions
  • High operational costs and maintenance burden
  • Complex regulatory compliance requirements
  • Passenger comfort and experience expectations

Solution

  • Comprehensive aircraft portfolio A220-A380
  • ZEROe hydrogen-powered aircraft development
  • Digital services through Skywise platform
  • HCare and FHS maintenance solutions
  • Sustainable aviation fuel partnerships

Key Metrics

  • Commercial aircraft deliveries
  • Order backlog value
  • EBIT margin
  • Free cash flow
  • R&D investment percentage

Unique

  • Comprehensive product portfolio breadth
  • European manufacturing ecosystem
  • Leading position in sustainable aviation
  • Skywise digital platform with 14,000 aircraft
  • Strong governmental relationships

Advantage

  • Unmatched A320 family production ecosystem
  • Public-private research partnerships
  • Extensive intellectual property portfolio
  • Long-term service agreements with airlines
  • Composite materials manufacturing expertise

Channels

  • Direct sales teams by region
  • Aircraft lessors as intermediaries
  • Airshows and industry exhibitions
  • Pilot training centers worldwide
  • Digital platforms and customer portals

Customer Segments

  • Global commercial airlines
  • Regional carriers
  • Government and military organizations
  • Aircraft leasing companies
  • Private and business aviation customers

Costs

  • Raw materials (aluminum, composites, titanium)
  • Manufacturing facilities across multiple countries
  • 135,000+ global workforce
  • Extensive R&D programs (€2.9B annually)
  • Global supply chain management
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Overview

Airbus Product Market Fit

1

Fuel efficiency and emissions reduction

2

Total lifecycle cost optimization

3

Safety and reliability excellence



Before State

  • High emissions aircraft
  • Inefficient fuel consumption
  • High operating costs
  • Fragmented passenger experience
  • Complex maintenance requirements

After State

  • Zero-emission aircraft technology
  • 25-30% improved fuel efficiency
  • Lower total cost of ownership
  • Seamless passenger experience
  • Predictive maintenance solutions

Negative Impacts

  • Environmental footprint challenges
  • Regulatory compliance costs
  • Rising fuel expenses
  • Customer satisfaction variability
  • Maintenance downtime costs

Positive Outcomes

  • Carbon footprint reduction
  • Regulatory compliance assurance
  • Lower operating expenses
  • Increased customer loyalty
  • Maximized aircraft availability

Key Metrics

Aircraft delivery rate
Backlog value
€449 billion
Service satisfaction
92%
Market share growth
4.2% YoY

Requirements

  • Next-gen propulsion systems
  • Advanced materials adoption
  • Digital transformation
  • Supply chain optimization
  • Workforce reskilling

Why Airbus

  • ZEROe hydrogen aircraft program
  • SAF investment partnerships
  • Digital continuity implementation
  • Industry 4.0 manufacturing
  • Cross-functional innovation labs

Airbus Competitive Advantage

  • Comprehensive product portfolio
  • Services integration capability
  • Technological innovation leadership
  • European public-private partnerships
  • Global market presence

Proof Points

  • A350 25% lower fuel burn vs competitors
  • 1,620+ Skywise-connected aircraft
  • 7,400+ aircraft in service worldwide
  • 100+ airlines using Airbus services
  • 90% on-time delivery performance
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Overview

Airbus Market Positioning

What You Do

  • Design and manufacture aerospace products

Target Market

  • Commercial airlines, defense and space agencies

Differentiation

  • Fuel-efficient aircraft
  • Comprehensive product lineup
  • Strong European footprint
  • Pioneering sustainable aviation

Revenue Streams

  • Aircraft sales
  • Services & maintenance
  • Defense contracts
  • Space systems
  • Helicopter sales
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Overview

Airbus Operations and Technology

Company Operations
  • Organizational Structure: Divisional (Commercial, Defense, Helicopters)
  • Supply Chain: 80% outsourced components, global supplier network
  • Tech Patents: 11,000+ active patents in aerospace technology
  • Website: https://www.airbus.com
Top Clients
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Competitive forces

Airbus Porter's Five Forces

Threat of New Entry

Low for global scale due to enormous capital requirements (€10B+), regulatory barriers, but COMAC presents long-term threat with state backing

Supplier Power

Medium-high power as critical components (engines, avionics) come from few suppliers (Rolls-Royce, GE, Safran) with high switching costs

Buyer Power

Medium-high as large airlines have significant negotiating leverage, with aircraft orders often placed in bulk worth billions of euros

Threat of Substitution

Low in short/medium-term as high-speed rail limited to certain routes; virtual meetings impact business travel but not overall growth

Competitive Rivalry

Duopoly with Boeing in commercial aircraft (80% market share combined), limited competition from Embraer, Bombardier, and emerging COMAC

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Drive AI transformation

Airbus AI Strategy SWOT Analysis

To pioneer sustainable aerospace for a safe and united world by building the first zero-emission commercial aircraft by 2035

Strengths

  • DATA: Vast operational data from 14,000+ aircraft
  • SKYWISE: Leading aviation data platform with 130+ users
  • TALENT: 2,000+ data scientists and AI specialists
  • COMPUTING: Significant high-performance computing capacity
  • PARTNERSHIPS: Academic and tech industry collaborations

Weaknesses

  • LEGACY: Integration with older aircraft systems challenging
  • SILOS: Data fragmentation across business units
  • ADOPTION: Varying AI implementation across operations
  • REGULATION: Certification barriers for AI in flight systems
  • COMPETITION: Tech giants attracting specialized talent

Opportunities

  • MANUFACTURING: AI-powered quality inspection saving 30%+
  • MAINTENANCE: Predictive analytics reducing downtime by 20%
  • DESIGN: Generative design reducing development time by 40%
  • AUTONOMY: Advanced flight systems for reduced crew workload
  • EMISSIONS: AI optimization of flight paths reducing fuel use

Threats

  • CYBERSECURITY: AI systems creating new attack surfaces
  • TALENT: Fierce competition for AI expertise
  • INVESTMENT: Resource allocation between AI and core R&D
  • PRIVACY: Customer data regulations limiting analytics
  • EXPLAINABILITY: Safety certification of AI algorithms

Key Priorities

  • SKYWISE: Expand platform capabilities and customer adoption
  • MANUFACTURING: Scale AI-powered production quality systems
  • DESIGN: Accelerate generative design implementation
  • CERTIFICATION: Partner with regulators on AI certification
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Airbus Financial Performance

Profit: €4.2 billion (2022)
Market Cap: €105.5 billion
Stock Symbol: AIR
Annual Report: Available on investor relations website
Debt: €11.6 billion in gross debt
ROI Impact: ROCE: 15.4% in 2022

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