Airbus Expansion: A Stroke of Genius or a Grave Risk?

Airbus Expansion: A Stroke of Genius or a Grave Risk?

  • Case
  • Teaching Notes
Abstract

Airbus boldly launched a disruptive restructuring of the aerospace sector by acquiring the Bombardier CSeries program, its ailing low-passenger-capacity Canadian competitor. Boeing, the key global competitor of Airbus, was in turn forced to reinvent itself in depth and launch the initiative Boeing 2025. For its part, Airbus faced multiple challenges and made bold bets, producing more to ensure its sales conquer the service market and cater to Asian customers. Airbus chose to offensively manage its industrial partnerships. This case traces the events faced by Airbus since 2010 and discusses how management transformed the group’s business portfolio. Students ought to consider several questions. On which axes has the restructuring of the portfolio focused? What strategic approaches have been deployed? What performance was achieved by the group?

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