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Airbus Product

To pioneer sustainable aerospace by leading development of sustainable global aerospace solutions that connect people worldwide

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To pioneer sustainable aerospace by leading development of sustainable global aerospace solutions that connect people worldwide

Strengths

  • PORTFOLIO: Diverse product range from commercial to defense aircraft
  • INNOVATION: Strong R&D capabilities, €2.9B invested annually
  • MARKET: Leading 50% commercial aircraft market share with Airbus A320
  • SUSTAINABILITY: Pioneer in hydrogen and SAF aircraft technologies
  • BACKLOG: €561B order backlog providing long-term revenue stability

Weaknesses

  • SUPPLY: Persistent supply chain vulnerabilities affecting production
  • INTEGRATION: Digital transformation lags behind industry standards
  • DEPENDENCIES: Over-reliance on certain engine and component suppliers
  • TALENT: Skills gap in new technologies like AI and digital systems
  • COMPLEXITY: Product development cycles longer than key competitors

Opportunities

  • SUSTAINABILITY: Growing demand for fuel-efficient, low-emission aircraft
  • DEFENSE: Expansion of military spending in Europe and APAC regions
  • SERVICES: Digital services market growing at 8.7% CAGR through 2030
  • URBAN: Urban air mobility market projected to reach $12.7B by 2027
  • SATELLITE: Expanding space economy and satellite communication demand

Threats

  • COMPETITION: Boeing recovery and emerging competitors from China
  • GEOPOLITICAL: Trade tensions and regional conflicts disrupting markets
  • REGULATORY: Stricter emissions regulations limiting product offerings
  • RESOURCES: Raw material shortages and critical component scarcity
  • ECONOMIC: Potential airline industry downturn affecting orders

Key Priorities

  • SUSTAINABLE: Accelerate sustainable aircraft development initiatives
  • DIGITAL: Transform product development with digital technologies
  • SUPPLY: Strengthen supply chain resilience through diversification
  • INNOVATION: Expand innovation capabilities in emerging aerospace tech
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To pioneer sustainable aerospace by leading development of sustainable global aerospace solutions that connect people worldwide

PIONEER GREEN

Lead the industry in sustainable aircraft development

  • HYDROGEN: Complete initial hydrogen propulsion system design review with 85% requirements met
  • SAF: Achieve 50% sustainable aviation fuel compatibility across all new aircraft designs
  • MATERIALS: Reduce aircraft weight by 12% through new composite material implementation
  • EFFICIENCY: Deliver 15% fuel efficiency improvement in next-generation A320 family update
DIGITIZE CORE

Transform product development with digital technologies

  • PLATFORM: Launch unified digital product lifecycle management platform for 100% of new projects
  • SIMULATION: Reduce physical testing requirements by 30% through enhanced digital simulation
  • AI-DESIGN: Implement AI-assisted design tools in 75% of product development workflows
  • DASHBOARD: Create comprehensive digital product performance dashboard used by 90% of teams
SECURE SUPPLY

Build a resilient and sustainable supply chain ecosystem

  • DIVERSITY: Reduce single-source components by 40% through alternative supplier qualification
  • VISIBILITY: Achieve 95% real-time visibility into tier 1-3 supplier production status
  • INVENTORY: Establish strategic component reserves to cover 60 days of production needs
  • PARTNERSHIPS: Create 3 strategic joint ventures with key suppliers for critical components
FUTURE FLIGHT

Expand innovation in emerging aerospace technologies

  • URBAN: Complete critical design review for urban air mobility vehicle with 90% requirements met
  • AUTONOMOUS: Demonstrate autonomous flight capabilities in 3 test aircraft configurations
  • CONNECTIVITY: Integrate advanced satellite connectivity in 80% of new aircraft designs
  • ECOSYSTEMS: Establish 5 new innovation partnerships with startups and research institutions
METRICS
  • DELIVERIES: 800 aircraft
  • SUSTAINABILITY: 25% reduction in CO2 emissions per aircraft
  • DIGITAL: 50% of product development processes digitally transformed
VALUES
  • Customer focus
  • Integrity
  • Respect
  • Creativity
  • Reliability
  • Teamwork
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Align the learnings

Airbus Product Retrospective

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To pioneer sustainable aerospace by leading development of sustainable global aerospace solutions that connect people worldwide

What Went Well

  • DELIVERIES: Achieved 735 commercial aircraft deliveries, up 11% YOY
  • ORDERS: Secured 2,094 gross orders, demonstrating strong market demand
  • REVENUE: Increased consolidated revenue to €65.4 billion, up 11% YOY
  • DEFENSE: Defense and Space segment revenue grew by 3.7% to €11.9 billion
  • MARGINS: Adjusted EBIT margin improved to 9.4% from 5.6% previous year

Not So Well

  • PRODUCTION: A320 family production ramp-up slower than initially planned
  • SUPPLY: Continued supply chain constraints affecting delivery schedules
  • HELICOPTERS: Helicopter segment EBIT decreased by 5.2% year-over-year
  • COSTS: Inflationary pressures impacted overall production costs
  • R&D: Lower than targeted R&D investment in next-gen aircraft tech

Learnings

  • RESILIENCE: Need for more diversified supplier networks to ensure stability
  • DIGITALIZATION: Digital transformation critical for production efficiency
  • PLANNING: More conservative production ramp-up timelines required
  • SUSTAINABILITY: Stronger market demand for sustainable aircraft solutions
  • INTEGRATION: Better integration of acquired technologies into core products

Action Items

  • SUPPLIERS: Implement new supplier risk assessment and diversification plan
  • DIGITAL: Accelerate digital transformation of product development process
  • EFFICIENCY: Launch production system optimization program by Q3 2025
  • SUSTAINABILITY: Increase R&D allocation for sustainable aviation by 25%
  • TALENT: Develop specialized recruitment program for digital/AI skills
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To pioneer sustainable aerospace by leading development of sustainable global aerospace solutions that connect people worldwide

Strengths

  • DATA: Vast operational data from 12,000+ aircraft for AI training
  • INVESTMENT: Established Airbus Scale AI accelerator with €20M funding
  • TALENT: 300+ AI specialists working across digital initiatives
  • INITIATIVES: Skywise platform processes data from 130+ airlines
  • RESEARCH: Multiple AI research partnerships with leading institutions

Weaknesses

  • ADOPTION: Uneven AI implementation across product development teams
  • INFRASTRUCTURE: Legacy systems limiting AI integration capabilities
  • GOVERNANCE: Inconsistent data quality standards across divisions
  • SKILLS: Limited AI expertise in mid-level product management roles
  • TOOLS: Fragmented AI tools landscape across business units

Opportunities

  • PREDICTIVE: AI-powered predictive maintenance could increase fleet uptime
  • DESIGN: Generative AI to accelerate design process by 30-40%
  • MANUFACTURING: AI-optimized production could reduce costs by 15%
  • CUSTOMER: Enhanced digital twin technology for customer interaction
  • AUTONOMY: Advancing autonomous flight systems for future aircraft

Threats

  • COMPETITION: Boeing's $1B digital transformation initiative
  • TALENT: Aerospace industry losing AI talent to tech companies
  • REGULATION: AI governance regulations impacting aerospace deployment
  • SECURITY: Cybersecurity vulnerabilities in AI-enabled systems
  • INVESTMENT: Competitors making larger AI R&D investments

Key Priorities

  • INTEGRATION: Create unified AI product development platform
  • TALENT: Upskill product teams with AI capabilities and resources
  • GOVERNANCE: Establish robust data and AI governance framework
  • USE-CASES: Prioritize AI initiatives in sustainable aircraft design