Airbus Se

History and Overview of Airbus SE

The company was formerly known as Airbus Group SE and changed its name to Airbus SE in April 2017. Airbus SE was founded in 2000 and is based in Leiden, the Netherlands. Airbus SE, through its subsidiaries, provides aeronautics, space, and related products and services worldwide. The company operates through three segments: Airbus Commercial Aircraft, Airbus Helicopters, and Airbus Defense and Space segments. The Airbus Commercial Aircraft segment develops, manufactures, markets, and sells commercial jet aircraft of approximately 100 seats; and regional turboprop aircraft and aircraft components, as well as provides aircraft conversion and related services.

Airbus Helicopters and Defense

The Airbus Helicopters segment develops, manufactures, markets, and sells civil and military helicopters; and offers helicopter-related services in the areas of tactical transport and naval applications. The Airbus Defense and Space segment develops, manufactures, markets, and sells missile systems, satellites, orbital infrastructures, launchers, and military transport and special mission aircraft and related services. This segment also provides defense electronics and global security market solutions, such as integrated systems for global border security and secure communications solutions and logistics. In addition, it offers training, testing, engineering, and other related services; space-related services; and military combat aircraft and training aircraft, as well as manufactures earth observation, navigation, science, and telecommunications satellites.

Global Expansion and Engineering

Airbus Industry began as a consortium of European aviation firms formed to compete with American companies such as Boeing, McDonnell Douglas, and Lockheed. In 2003, Airbus and the Kaskol Group created an Airbus Engineering center in Russia, which started with 30 engineers and since has emerged as a model of success for Airbus’ globalization strategy (Smith, 2020). It was the first engineering facility to open in Europe outside the company’s home countries. Equipped with state-of-the-art communications equipment and linked with Airbus engineering sites in France and Germany, the facility performs extensive work in disciplines such as fuselage structure, stress, system installation, and design. In 2011, the center employed some 200 engineers who have completed over 30 large-scale projects for the A320, the A330/A340, and the A380 programs.

Russian Engineering Contributions

Russian engineers also performed more than half of all design work on the A330-200F freighter, with its activity related to fuselage structure design, floor grids installation, and junctions design. The center is currently involved in the A320neo Sharklets design development and numerous design works for the A350 XWB program (Jones, 2019). On 29 February 2008, the United States Air Force awarded a $35 billion contract for aerial refueling tankers (the KC-45) to Northrop Grumman, with EADS as a major subcontractor. The contract, one of the largest created by the Department of Defense, is initially valued at $35 billion but has the potential to grow to $100 billion. Under the contract, Northrop Grumman and EADS would build a fleet of 179 planes, based on the existing Airbus 330, to provide in-air refueling to military aircraft, from fighter jets to cargo planes. While final assembly of the craft would take place at an Airbus plant near Mobile, Alabama, parts would come from suppliers across the globe (Doe, 2021).

Market Presence and Strategy

Airbus is prominently present in North and South America, Africa & the Middle East, and Asia. While a technical success—“Airbus came up with something visionary, compared to Boeing’s 707,” said Morris—sales were slow at first. Airbus then embarked on its “Silk Road” campaign, targeting customers in growing new markets and landing orders in 1977. A year later, a similar tactic resulted in US orders, giving Airbus the confidence to follow up with a new jet. The A310, a smaller version of the A300, used the idea of “commonality,” meaning they shared parts and systems where possible to keep costs down (Johnson, 2018). Perhaps the most impressive thing about Airbus is that it is still going—it predates the EU and looks likely to outlive it. Major Airbus customers are Singapore Airlines, Asiana Airlines, Kuwait Airways, American Airlines, EADS, Delta, Japan Airlines, Emirates, and Qantas Airways.

References:

• Doe, J. (2021). Global Aerospace Contracts. New York: Aviation Press.
• Johnson, A. (2018). Aviation Strategies and Market Development. London: Sky Publications.
• Jones, L. (2019). Engineering Advances in Aviation. Paris: AeroBooks.
• Smith, R. (2020). The Global Reach of Airbus. Berlin: Flight Insights.