Superjumbos

1
Superjumbos

• Prashant Chopra
• Jenny Gordon
• Timothy Richter
• Aaron Rosenberg
• Katerina Vrettou

2
Agenda

• Market Overview Current Strategies
• Trade Issues
• Current and Future Situation
• Conclusions
• Q A

3
Rationale for Superjumbo

• Fewer, larger aircraft will reduce airspace and
  airport congestion
• Airlines will achieve lower operating costs

4
Boeing Cedes Market to Airbus

• Airbus effectively signaled commitment
• Companies have different market forecasts

5
Current Strategies

• Airbus A380
• Delivery scheduled for 2006
• Validated by Boeings retreat
• Boeing Sonic Cruiser
• Betting on increased demand for smaller, faster
  jets

6
Specifications
A380 Sonic Cruiser
Capacity (seats) 555 Up to 300
Range 6200 nm 9000 nm
Speed Mach .85 Mach .95
Price 230 million N/A
7
Trade Issues

• 1992 EC US Bilateral Agreement on Trade in Large
  Aircraft
• Direct vs. indirect subsidation
• 1994 Uruguay Round Agreement
• Current status

8
Current Situation

• Order status (A380)
• Firm orders 62
• Options 60
• Sonic Cruiser
• Exists on paper only
• No orders

9
Current Situation

• Some airports being expanded
• Dubai
• Singapore
• Schiphol (Amsterdam)
• Hong Kong
• Engines
• GP 7000 series (GE / Pratt Whitney alliance)
• Trent 900 series (Rolls Royce)

10
And Now

• Success factors
• A380 acceptability
• Airports
• Airlines
• Load factor
• Sonic Cruiser
• Feasibility
• Time factor

11
Conclusions

• Boeing/Airbus pursuing different segments
• This opens two segments for us as an engine
  manufacturer
• Were ready for both
• It doesnt appear that trade issues will affect
  this situation

12
Questions