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Research firm explains how Airbus lost its dominant market position

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eTN Staff writer  Dec 06, 2007

New York City-based research firm Basex, Inc. has issued a report claiming that Airbus' failure to share knowledge and collaborate among its multinational companies in recent years will cost the aircraft maker a staggering euro 4.8 billion ($7 billion) over the next four years.

“Such failures stem from many sources, including fragmentation across national boundaries, a lack of managerial insight, an inability to listen to its customers, and an unwillingness to invest in the latest software,” Basex said.

If Airbus is ever to regain financial stability, it must focus on building a knowledge-sharing infrastructure that supports enterprise-wide collaboration, rather than try to balance competing European interests, according to the Basex report titleed "Airbus Hits Turbulence: How Knowledge Sharing Failures Cost Airbus Euro 4.8 Billion."

“Airbus, which recently delivered the first A380 superjumbo to Singapore Airlines, has faced repeated delays due to software and IT issues as well as cost overruns in the project, which is now two years behind schedule and 50 percent over budget.

“Far from being a unified company, Airbus' management and production teams span many European companies. The company is first now taking steps to unify these groups but the Basex report asks whether it is a question of too little, too late.”

"Managers need to accept that the knowledge economy is moving at a faster pace than we realize," said Jonathan B. Spira, chief analyst at Basex and a principal author of the report. "The Airbus case is the first to put a hard figure on knowledge mismanagement and knowledge sharing failures."

The complete report, with a special introductory price of $199, is available from the Basex Web site at http://www.basex.com/airbus.

Research firm explains how Airbus lost its dominant market position



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