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1. Why is Airbus interested in building the A3XX? What are its objectives?
Airbus wants to expand its business. Airbus major competitor Boeing had successfully produced 747 in VLA category. Airbus now wants expand its horizon and enter the VLA segment. There seems to be a promising future in the VLA market category. Analyst predicted that airplanes travelling long distance with higher capacity was more cost effective. The operating cost would be only 12% more than the Boeing 747 but would provide 35% more capacity. Research has shown that the demand for VLA will increase due to the increase in number of air travel and growing traffic at major airport worldwide. To meet future demand there is a need for a large aircraft and also large capacity will in-turn increase the number of passengers and cargo. There is also a strong prediction that economy of Asia will increase further increasing in air traffic.
Airbus rejected the theory of hub-spoke model, stating that would only lead to congestion and hence it is not the solution of the problem. Passengers would prefer to travel long distance with no stop overs and better leg room. Over time majority of the airlines will find a need to have it. The airplane will be designed better as it will have four engines instead of two which also contributes to the safety factor.

The objectives:
Airbus wants to know the demand of the product. As the company is investing a lot in the airplane, they need to be sure as what is the demand and how many promised orders they can get. They forecast long term demand and meet it with their product. As investment is high, the forecast will be made for the next coming 20 years and in the next coming years it would see a promising demand for the A3XX. Also, it is important to build an aircraft by the norms of the government. One of the key objective to become the king of the industry ahead

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