Business > Research Paper > Airbus A3XX Developing the World’s largest commercial jetAirbus Plan (All)
Airbus A3XX Developing the World’s largest commercial jetAirbus Plan
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Airbus A3XX Developing the World’s largest commercial jetAirbus Plan • Would you build the A3XX? • The breakeven analysis • Demand for VLAs – We will not go into depth on this. – Sl... ides are provided for you in case you are interested • How should Boeing respond? • Should Airbus proceed? • What happened? 2Breakeven Analysis • We want to find how many planes Airbus needs to make each year to break even (have a zero or non-negative NPV) • How do we do this? • We need to get – Costs? – Income per plane? Growth? 3Breakeven Analysis • Find PV of the R&D and investment costs • PV of Perpetuity from selling n planes per year – Pick a number of planes n to see if it is enough planes – Calculate the operating profit from each plane in 2008 (Airbus at full capacity in 2008 – assume previous planes sold at cost (0 profit)) – Multiply by n to get the operating profit in 2008 – Assuming 2% inflation, find the PV of future operating profits in 2008 – Discount this back to the present 4Breakeven Analysi [Show More]
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