Macroecons Research Paper

2782 words - 12 pages

Research Overview
The Airbus model A380 is truly one of the most ambitious projects that were undertaken by the company in recent years, shoring a new benchmark for commercial aviation both for itself and its competitors. The behemoth, for all its size and payload capabilities, boasts an approximate 20% increased efficiency in its fuel to seat ratio in respect to the other aircrafts. This makes the A380 one of the most fuel savings and environment friendly aircrafts of its time, due to decreased fuel combustion, resulting in less carbon dioxide being produced in respect to its size. This has been coined by Emirates Airline “the most significant advancement in reducing fuel consumption and emissions in four decades.”
On the economic front, the Airbus 380 is able to carry more passengers on each flight, creating cost savings while maintaining capacity. These technological advances ensure that the equilibrium quantity for the flights will be lesser than what it used to, as its supply increases. In turn, this could mean increased revenue for commercial aviation industry for the following years.
However, it is worth noting that despite all its marketing hype and sales strategies, the demand for this supposed technological breakthrough masterpiece had seen a decline in recent years. According to Airbus sales Chief John Leahy, there is an expectation that the demand orders for the A380 “has been slowing down”. This study will show the trends as well as some of the reasons for it.

Variables identified
Dependent Variable(s):
The demand for A380s in Asia for the next two decades. Airbus, as mentioned before, had taken its commercial industry advancements to the next level and had set a new benchmark both for itself and its competitors alike. This study will aim to find out if the current trend of events bode well for the A380 program, one of the most ambitious projects taken by any airline company around the world. A general overview of the cabin layout for the A380 is provided in the appendix below. (Appendix A, p.8)
Independent variable(s):
The economic state of the aviation industry will be studied lightly for this research, hopefully providing insights into the current state of the A380 program and might be used to predict the future trend of it as well. Moreover, it is certain that the current economic state significantly affects the direction in which Airbus might want to steer its project.
There had been cases of defective A380s that were pushed out and delivered to its clients, only for them to be returned for repairs and reconfiguration services. It is a possibility that the high number of reworks that needs to be done and the costs that goes with it affects the demand orders from airlines as well, as compared to other aircrafts such as the A350 and B787. This study will aim to explore the relationship between the A380s incidents and its subsequent demand orders from the clients around the world. Note that only Asian airlines will be...

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