1. Strategic Analysis of Airbus Dominant Logic David Bright, Terra Christensen, Nicholas Papas, Arc Sims, Derrick Smith

2. Overview  Part I – Customer Needs  Part II – A3XX?  Part III – Airbus Maintenance Services

3. What Are Your Customers Needs?  Airline Industry Trends? Point-to-Point Low Ticket Pricing, Convenience  Lower Costs  Standardization of Planes

4. What Are Airbus’ Needs?  Increase Diversification  Manage Risks  More Consistent Streams of Revenue  Sustainable Competitive Advantage  Manage Stakeholders

5. A3XX Project? Yes Cross Crew Standardization Increased Capacity Full Product Line No Industry Trends Higher Costs Does It Meet Your Customer’s Needs?

6. A3XX Project? Yes Expands Product Line Benefits Stakeholders No Poor Financial Does Not Diversify or Manage Risk Not Sustainable Competitive Advantage Does It Meet Airbus’ Needs?

7. A3XX Financials  Assumptions  Sensitivity analysis performed  NPV ranges – (6.8) to (2.7)  IRR ranges – < 0 to 6%

8. A3XX?  Postpone For 5 Years

9. Alternatives  Financial Services  Stretch Existing Model  Supersonic Technology

10. Alternatives – Financial Services Benefits Lowers airline’s costs Diversification Consistent Stream of Revenue Problems Capital Intensive for Airbus High Risk Low IRR

11. Alternatives – Stretch Benefits Use Plane Standards and CCQ Manages Capital Risk Expands Product Line Quicker Development Problems Low IRR Limited Potential Capacity Does Not Diversify

12. Alternatives – SuperSonic Benefits Aligned With Point-to- Point Disruptive Technology Problems Does Not Diversify Low Capacity Financial Results Airport Infrastructure Environmental (i.e. Sound)

13. Airbus Maintenance Services ( AMS ) Move to Maintenance and Repair Services Services Trends Industry Overview

14. Airbus Maintenance Services Yes Lowers Costs Serves Point-to-Point Promotes New Airline Entrance Enhances Relationships No Conflict of Interest Reorganization Costs Outsourcing Issues Does AMS Meet Customer’s Needs?

15. Airbus Maintenance Services Yes Diversifies Financials Low Capital More Sustainable Competitive Advantage No New Industry Global Issues Does AMS Meet Airbus’ Needs?

16. AMS Financials  Assumptions  Sensitivity analysis  NPV  IRR  Payback  Breakeven market share

17. Internal Rate of Return

18. Net Present Value

19. Implementation Issues  Obtaining Personnel, Property, Plant and Equipment  Learning Curve  Supply Chain  Global Issues  Marketing Communications

20. Implementation Schedule

21. Thank You Questions?

22. A3XX Financials

23. Financing Services Financials

24. Concorde Financials

25. Services Forecast

26. AMS Financials

27. 10 Year Terminal Value

28. Assumptions