AIRBUS SAS

AIRBUS SAS Overview

Company Headquarters: Netherlands

Founded: 1998

Workforce: ~133,671

Company Working:

Airbus SAS (Airbus) is a leading manufacturer of civil, commercial, and military aircraft, space missiles, and satellites. The company has production houses in the Netherlands, France, Germany, Spain, China, the UK, and the US. The company also has subsidiaries in the US, China, Japan, Saudi Arabia, and India with more than 150 sales offices around the world. Its spare parts centers are in Hamburg, Frankfurt, Washington, DC, Dubai, Beijing, and Singapore. Airbus operates through three major business segments, namely Airbus commercial aircraft, Airbus defense and space, and Airbus helicopters. The Airbus commercial aircraft segment is the highest revenue-generating segment and includes aircraft manufacturing and related systems and services. The Airbus helicopters segment deals with the development, manufacture, marketing, and sale of civil and military helicopters as well as helicopter MRO services. The Airbus defense and space segment covers systems and services in the field of defense and space for governments, institutions, and commercial customers.

Strategy

Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin-top:0cm; mso-para-margin-right:0cm; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0cm; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Roboto Condensed"; mso-ascii-font-family:"Roboto Condensed"; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:"Roboto Condensed"; mso-hansi-theme-font:minor-latin; mso-ansi-language:EN-US; mso-fareast-language:EN-US;} Airbus accounted for the largest share of the global helicopter MRO market in 2018. The company adopts organic and inorganic growth strategies to maintain its market position. Moreover, it focuses on the development of its service portfolio with high investments in MRO facilities. Furthermore, it enters into agreements and partnerships with key players in the market to expand its presence and increase its market share. Additionally, Airbus emphasizes investments in the development of its MRO facilities to cater to the increasing fleet of helicopters globally.

SWOT Analysis

Strengths

Diversified business operations Strong research and development capabilities Global operations and wide revenue base
Diversified business operations
Strong R&D capabilities
Wide revenue base
Diversified businesses
Strong research & development
High focus on innovation
Consistent increase in revenue for three consecutive years
Robust R&D capability
Global presence
World-leading domain technology/capability
Strong cash generation for re-investment
Established customer relationships
Diverse geographic presence
Strong brand and reputation
Large and diverse customer base

Weaknesses

Dependence on sub-contractors and suppliers Fluctuating financial performance from 2016 to 2018
High dependency on the European and North American contracts
Dependence on limited suppliers
Limited presence in Asia-Pacific
High dependency on the European and North American markets
Focused only on selective end-users
Fluctuating financial performance
High dependency on few licensed suppliers
Dependence on suppliers

Opportunities

Expansion in emerging economies such as India, South Korea, and China
Expansion in emerging economies such as India, China, and South Korea.
Scope to expand in Asia-Pacific
Advanced worldwide infrastructure startup
Demand for cost-effective solutions that enhance connectivity
Expansions in emerging markets
Demand for efficient solutions providing ISR services
Demand for cost effective solutions that enhance connectivity
Greater strategic engagement potential for improved execution
Rapid technological advancements in the aerospace industry

Threats

Rising prices of raw materials Slow certification process for approval of new MRO facility
Growing prices of raw material
Changing market and economic conditions
Rapidly evolving startups
Stringent FAA regulations
Defense budget cuts
Intense competition in established markets
Strict government regulations
Fluctuating currency rates
Stringent government regulation
Fluctuation currency rates

Key Developments

Date	Approach	Development
April 2019	Expansion	Airbus launched its H215 helicopter in China with the first delivery to China’s State Grid General Aviation Company (SGGAC). SGGAC also became a certified Airbus helicopters MRO center in Shenzhen, China.
March 2019	Investment	Airbus announced plans to invest USD 550 million in its Malaysian operations by 2023. The company aims at making Airbus Helicopters Malaysia Sdn Bhd the premier MRO center in Asia-Pacific.
April 2020	Contract	Airbus signed a contract with Japan Coast Guard (JCG) to provide two H225 helicopters.
January 2020	Contract	Airbus signed a contract with Metro Aviation to provide 12 EC145e helicopters.
January 2020	Contract	Airbus signed a contract with The National Aeronautics and Space Administration (NASA) to provide 3 H135 helicopters.
January 2020	Collaboration	Airbus collaborated with Aston Martin to launch the Aston Martin edition helicopter, ACH130.
October 2019	Contract	Airbus signed a contract with Air Greenland based in Greenland to provide two Airbus H225 heavy helicopters and maintenance and support services. With the procurement of the helicopters, Air Greenland will be able to provide enhanced search & rescue services.
September 2019	Contract	Airbus signed a contract with the Romanian Ministry of Interior to provide three H135 helicopters and maintenance and support services.
August 2019	Contract	Airbus provided two H145 helicopters to the New Zealand Helicopter Emergency Medical Services. The contract enabled the company to strengthen its presence in the New Zealand market.
May 2019	Expansion	Airbus collaborated with the Hungarian government to establish a manufacturing facility in Gyula to manufacture metallic elementary parts for the Airbus helicopter range. With the development of the new facility, Airbus aims at strengthening its position in the Hungarian helicopter market.
March 2019	Contract	Airbus provided H175 helicopters to the Rescue and Salvage Bureau (CRS) of the Chinese Ministry of Transport (MOT).
November 2018	Expansion	Airbus, with an aim at strengthening its presence in the Asian helicopter market, planned to develop an MRO facility in Japan.
August 2018	Product Development	Airbus SAS tested Zephyr, which set an endurance record. The company reported that the satellite was in the stratosphere, where it operates from, for 25 days, 23 hours, and 57 minutes. The UK-built Zephyr drone took off from Arizona and landed safely.
July 2018	Expansion	Airbus started manufacturing of the Zephyr S at a new facility at Farnborough, UK.
February 2020	Collaboration	Airbus S.A.S collaborated with the Civil Aviation Authority of Singapore (CAAS) to develop urban air mobility (UAM) IN Singapore. The collaboration enabled the company to strengthen its position in the Singapore unmanned systems market.
November 2019	Collaboration	Airbus S.A.S collaborated with XAG Co., Ltd., an agriculture drone service provider based in China, to develop a drone cargo service named Vesper. Under the project, the company conducted trials in Guangzhou, China.
March 2019	Product Launch	Airbus S.A.S conducted ship-to-shore trials of Skyways parcel delivery drones in Singapore. The trials enabled the company to strengthen its position in the global market.
July 2018	Agreement	Airbus S.A.S signed a Memorandum of Understanding (MoU) with International SOS, a medical and security risk services company, headquartered in Singapore to research the usage of drones for delivering medical supplies.
September 2022	Collaboration	Airbus and In-Space Missions collaborated on the design and development of the Prometheus 2 satellites. It has passed environmental and vibration testing. The Defence Science and Technology Laboratory (Dstl) owns the Prometheus 2 cubesats on behalf of the Ministry of Defence (MOD). Airbus Defence and Space co-funded them, with In-Space Missions Ltd leading the construction.
March 2023	Announcement	Airbus has revealed more enhancements to its Skywise digital platform at the Skywise Symposium in Istanbul. The platform will now include new tools and capabilities that will allow airlines, MROs, part traders, and other users to quickly perform more complicated activities, integrate applications, simulate situations, and transfer data to their own MRO IT systems in real time.
October 2019	Partnership	Airbus and Delta announced the completion of a significant digital partnership that would combine the expertise of Delta TechOps, the maintenance division of Delta Air Lines, with the digital portal Skywise to combine the information gathered by Airbus Services. The partnership brought together both sides' knowledge in every facet of aviation maintenance, including engine repair.