Presented by -Jatin(6) -Alka(12) -Kuldeep(18) -Vinayak(24) -Ankita Narain(31

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they delivered 889 aircraft in 1999. ranging from single aisle jets seating 100-200 passenger to the twin aisle Boeing 747-400 seating more than 400 passenger y Airbus New Launch.A3XX .Introduction y The Boeing Company and Airbus Industries. dominate the manufacture of large commercial aircraft y Combined.

$13bn y $11bn -R&D. expecting orders at least 50 . $1bn Cap Exp. $1bn -WC y Price -$216mn y Before started.Financial Design of A3XX y Super Jumbo Jet y Seating Capacity 550-990 y Proposed in June23.2000 y Estimated launching cost.

>$350bn . Revenue.250 Planes y Depreciation.SLM y Expecting Delivery from 2006 y Time Horizon-20 yrs y Expecting sale.Continues y BEP.750.

eg-air force one. space shuttle y Consisted 14 models. military aircraft) . B29s) y Based in USA y Manufacture various kind of aircrafts. fighter aircraft. each with different technology y World s leading producer of commercial aircraft(2/3rd of the revenue &1/3rd from missiles.History of Boeing y From the 2nd world war(B17s.

Continues y Flagship.747-400(1965) held 420 passengers y In 1999. delivered 47 planes at avg price $150mn &many more orders y Connectivity across the world . there was strong for 747.

Space systems .History of Airbus y Founded in 1970 as a consortium of principal airospace companies of Germany(Deutsch now daimlerchrysler).Toulouse(France) y Commercial aircrafts. England(hawker siddeley) & Spain(construcciones aeronauticals) y Headquarter. Military aircraft. France(aerospatiale matra).

exhibit 4A y Companies merged and make EADS in 2000 and launched an IPO(exhibit 4B) y A-300.Continues y Financial statement. A-340 Aircrafts of Airbus( detailed information of sitting capacity and deliveries . A-310. A-320. order booking for the future yrs is in Exhibit3) .A-330.

operating cost 12% more than 747 s but 35% more efficient y Break even per flight 323 passengers y Forecast demand for 727 VLA by 2019 .Proposed A3XX Project y Against boeing 747 y List price $216mn.

9bn from partners . 5.Financing the A3XX y Launch cost-$13bn(exhibit 10) y R&D. Plant.5bn from vendors.11bn y Property. Equipment-1bn( SLM depreciation over 10yrs) y WC-1bn y Financing sources.6bn launch aid.3.3.

Project Economics of A3XX y y y y y y y y y 1st delivery. price would go up $225mn/plane Operating margin.2006 Cost can go upto $15bn In 2008.84 .38% Target pre-tax IRR.15-20%(earning before payment of launch aid and risk sharing capital) Tax rate.15%( could be 20%) Risk free interest rate-6% Inflation rate-2% Asset beta-0.

-calculate NPV -Sensitivity analysis on BEP -Sensitivity analysis of NPV .Analysis of the Project A3XX y After using the given information in the exhibits.

Using sensitivity Analysis on Break.Conclusion As NPV is +ve i. $ 112 mn so it is feasible for Airbus to go ahead with project.e. .Even Number of Planes Sold. 39 per year are the number of planes to be produced to achieve break even analysis.

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