Airbus A380 : a risk management framework

• Main Author: Appasaheb Naikal
• Other Authors: Alton Chua Yeow Kuan
• Format: Theses and Dissertations
• Language: English
• Published: 2009
• Subjects: DRNTU::Business::Operations management::Risk management
• Online Access: http://hdl.handle.net/10356/19257
• Institution: Nanyang Technological University

Airbus – A subsidiary of EADS is one of the World’s leading commercial aircraft manufacturers. Its customer focus, technological innovations and manufacturing efficiencies, and product offering have driven it to the leading company in the aviation industry. However, it stunned the aviation world in 2006-2007 by announcing Airbus A380 production delays. Further its 2007 supply of A380 was reduced to one from twenty five. The delay cost Airbus more than $6.8 billion as penalties, higher cost of production and order cancellations. Airbus witnessed an eighteen month delay in the delivery of A380 due to several reasons like wiring problems; non-compatibility of software’s used at different factories of Airbus, etc. But the A380 project was delayed due to national rivalries between France and Germany, a clumsy management structure, and lack of visionary leadership. This study has used Willcocks and Margett’s Risk Assessment Model which is comprised of six components, namely History, internal context, external context, content, process and Risk outcomes to analyze and describe what went wrong with the Airbus A380 project. Further this study emphasizes the importance of managing global collaborative projects. It also highlights how theoretical models can be applied to real cases. This research also shows that projects cannot be successful without comprehensive consideration of the organizational, social and political factors. This study has also made an effort to find out the impact of the A380 delay on aviation industry and aircraft makers.