1. OPIM 5894 ADVANCED PROJECT MANAGEMENT AIRBUS 3XX: DEVELOPING THE WORLD’S LARGEST JET SURESH NAIR, Ph.D. Professor, School of Business University of Connecticut, Storrs, USA http://users.business.uconn.edu/snair/opim5894.html

2. Airbus 3XX: developing the world’s Largest Commercial Jet 2 Issues Raised  Basic economics of large projects  Large upfront expense ($13B) with uncertain returns  The complexity of estimating demand and revenue  Role of government as investors and customers Should Airbus launch this product? Prof. Suresh Nair, University of Connecticut

3. Airbus 3XX: developing the world’s Largest Commercial Jet 3 Team Assignments – Team 1  Future of Air Transportation and possible Boeing response  Evaluate how air transportation is evolving – point to point vs. hub and spoke.  Resultant demand for VLAs  Analyze Boeing’s possible competitive response to A3XX  How would Airbus decisions and Boeing’s response change due to changes in fuel prices, euro value changes?  Should Airbus launch A3XX? Prof. Suresh Nair, University of Connecticut

4. Airbus 3XX: developing the world’s Largest Commercial Jet 4 Team Assignments – Team 2  Break-even analysis  How many planes/year will Airbus have to sell to break- even?  Do they have the capacity to produce that many?  How sensitive is the B/E point to R&D and Operating Margin changes?  How does the B/E compare to B747 volumes? Prof. Suresh Nair, University of Connecticut

5. Airbus 3XX: developing the world’s Largest Commercial Jet 5 Team Assignments – Team 3  Demand Projections  How many A3XX planes do you estimate Airbus be able to sell per year? Support your answer with quantitative and qualitative analysis  What are your assumptions?  How sensitive is your estimate to these assumptions? Be as specific as possible.  What explains the wide variation in forecast for VLA Passenger aircraft between Airbus (1235) and Boeing (330) in Exhibit 6 and 8? Prof. Suresh Nair, University of Connecticut