To understand the international involvement of an aircraft development program, we have to take into account that EADS was formed by the merger on 2000 of DaimlerChrysler Aerospace AG (DASA) of Germany, Aérospatiale-Matra of France, and Construcciones Aeronáuticas SA (CASA) of Spain. The agreement established the sharing of aircraft development among the different nations(landing gear is usually developed in France, the engines in Germany, the wings in the UK and the military equipment in Spain). As most of the systems are linked and interconnected, so have to be the working teams sited in different countries. Obviously, this is a major challenge and has caused inefficiency in the past.
Finally, Airbus has developed a matrix organization, with dedicated teams for eachproject within the framework of a specific program. These project teams are international, combining experts from France, Spain, Germany or the UK.
EADS CHALLENGES, VISION AND OBJECTIVES
In the company's corporate website the challenges, objectives and vision are listed and I reproduce them below. As you can see, the globalization of the aeronautical industry is always present.
OUR WORLDA vision cannot be relevant if it does not include an analysis of the world around us and the challenges we face.
For our industry, these challenges are as follows:
• a world of mobility: the huge increase in air traffic – an annual growth rate of 5% – must comply with increased environmental requirements.
• an increasingly unstable world: mass terrorism, nuclear proliferation and developmentof Cyber warfare are giving rise to new security needs.
• a widening gap between the US and Europe: the United States spends twice as much as Europe on military equipment and six times as much on their military R&D.
• A hyper-competitive world: even though we are suffering from the effects of a weak dollar, we are facing the recovery of Boeing and the new ambitions of some of our competitorsand we must prepare ourselves for the arrival of new players (in particular from Russia and China).
These challenges are also opportunities. For example, environmental requirements provide an opportunity for us to develop new products and new technologies. EADS should also benefit from increasing security needs and closer links between defense and security.
• EADS has strong Europeanroots. Our company is at the head of some of the greatest European achievements, such as Airbus, Ariane, Eurofighter or Eurocopter. We are proud of this. But our playing field is the world.
• EADS' competitive advantage: deliver the best of European technology to serve the needs for mobility and security; we promote cutting-edge technologies, scientific excellence and programme leadership tocontribute to global progress.
2020 STRATEGIC GOALS/TARGETS FOR EADS
• The worldwide leader in air and space platforms and systems
Become the worldwide leader in air and space platforms and systems (mainly platform-related systems architecture and integration) with a complete portfolio of products, both commercial and governmental (commercial aircraft, military transport, mission aircraft,helicopters, fighters, UAVs, missiles, launchers, satellites, systems and secure networks).
Become a true global industrial company with 40% of EADS sourcing and 20% of EADS employees outside of Europe. Achieve $10bn revenues in North America in non-Airbus businesses and gain a prime position with US Government.
• Moving towards an eco-efficient enterprise
Move towards an eco-efficientcompany. Environmental issues are to become a transversal driver towards sustainable development. Airbus' ambitious targets are already defined. To be done for non-Airbus Divisions.
AIRBUS MARKETING STRATEGY
Airbus has already grown from a Franco-German joint-venture into a fully fledged European affair, with Britain and Spain as shareholders and Italy's aircraft industry a key supplier. The...