Abstract
This case study examines Airbus within the context of the global airline industry and its evolving operating models. It contrasts the traditional 'hub-and-spoke' approach with the increasingly popular 'point-to-point' model, noting how these influence aircraft design and demand. The study focuses on Airbus' distributed European supply chain, a politically negotiated structure intended to ensure shared industrial participation among partner nations. This model has fostered innovation and specialisation but also introduced complexity and coordination challenges - most notably during the troubled A380 programme. Delays due to incompatible design software and logistical inefficiencies highlight the risks of international collaboration without standardisation. Despite setbacks, Airbus achieved substantial market success with the A380 before shifting strategic focus to narrow-body, fuel-efficient aircraft in response to changing customer preferences and rising global competition.
The study also explores broader industry trends, including Boeing's competitive response and the emergence of China's Commercial Aircraft Corporation of China (COMAC) as a serious challenger to the Airbus-Boeing duopoly. COMAC's state-supported C919 and forthcoming CR929 highlight the strategic role of industrial policy and geopolitical tensions in shaping competitive dynamics. This case raises questions about global supply chain resilience, the future of large aircraft, and how firms like Airbus must adapt strategy, innovation, and stakeholder relationships to maintain leadership in a volatile global market.