Airbus Consortium

Turbulence wrecks Airbus Consortium Airbus Industry is a family of European aircraft-manufacturing companies formed in 1970 to meet the demand for short- to medium-range, high-capacity jet trendrs. Members include the German, french and Spanish-own European Aeronautic Defense and Space Company EADS (80% stake) and the British owned BAE Systems (20%). Since its inception, Airbus has become a case study for how a multi-lateral consortium erect be a disaster in a market-sensitive industry like Aviation.Technical and ethnic issues Socio-cultural differences It is well cognise throughout Europe that Germans prefer consensus and involving others in decision making, while the French like to arrest a alter committee making whole major decisions. The Spanish ar known to be flexible but not very communicative. All these differences have grandly impacted productivity and working efficiency within Airbus. political interference Its hard to enforce economic efficiency where subsidies are relate.Every time there was a crisis in investment or Opex, the goernments of the countries involved jumped in to help out their respective players in the consortium. This lead to huge overheads and repeated delays. Technical oversight Incompatibility in the versions of CATIA software employ by plants in Toulouse, France and Hamburg, Germany resulted in 530 kms of cable wiring throughout the aircraft having to be completely redesigned. This delayed the launch of Airbus A380 for two years, and as much as $6. 1 billion in losses and penalties for late-delivery. A fractured assembly line Owing to political compulsions, contrasting parts of the aircraft were built at different locations nose sections in France, fuselages in Germany, wings in UK, tails in Spain, etc, while the final assembly was done in Toulouse (France). All this led to overheads in logistics, not to mention communication gaps, and unforeseen delays. HR issues Positions and placements in top management is always a prickly issue, even in well-managed corporate companies owned by a single entity.The same laughingstock become hundred-fold in a roast-venture of this magnitude. To make matters worse, Governments of the countries involved tried to anteroom for top positions to their representatives, along with manufacturing contracts to their native countries. A direct consequence of all this was that the launch of Airbus A380 had to be pushed from 2006 to 2008. With several airlines canceling their orders, this resulted in a loss of over 2 billion Euros, a drastic cut in the sizing of the workforce, closure of a few plants, and a highly damaged shit image.Lessons Learned While workplace diversity is desirable in general, tolerable research must be done on both its short-run and long-term impact. While technical glitches can be easily overcome, cultural differences should be highlighted and pro-active measures underinterpreted towards cultural integration. Ability or Proficiency cannot be taken for granted, and Training of employees must be an integral part of any joint venture. Deadlines must be realistic and all issues known or outlander must be factored, as all of them have an impact on the final delivery.