Marketing in Action Case Real Choices at Airbus There is always room for more. At least that's what Airbus thinks. It has improved on its A320 product family (the world's best-selling aircraft) and introduced the A320neo (new engine option). The A320neo is available with two different engine configurations and will be a more fuel-efficient, single-aisle aircraft, for purchasing by the world's airlines. According to Airbus's estimates, the A320neo family of aircraft will lower per- seat fuel burn by 20 percent while providing additional range, reduced engine noise, and lower pollution emissions. To create this level of efficiency, the new engine options are accompanied by Sharklets wingtips, which not only provide for better fuel efficiency but also add more passenger comfort. Sharklets cut down aerodynamic drag and offer airlines up to four percent fuel burn reduction on longer-range flights. The Sharklets derive their name from their resemblance to a shark's fin, are made from light-weight composites and are 2.4 meters tall. With other aerodynamic refinements and significant weight savings, the A320neo has an increased range of approximately 500 nautical miles. The interior enhancements incorporate a re- designed cabin that offers larger carry-on luggage space and an upgraded air purification system. The cabin upgrades will allow for 20 additional revenue-generating passengers. Airbus also offers its customers other NEO type of aircraft including the A319neo and A321neo versions. These new planes share 95 percent of the spare parts used by their currently avail- able versions. More compatibility will allow current A320 cus- tomers to make use of parts and equipment that they already own, thereby lowering implementation costs. In addition, the new aircraft include a variety of other improvements over current aircraft. Airbus's greatest competition for the A320neo is from Boeing's most recent entry into the short-haul airliner market, the 737 MAX. Boeing's Senior Vice President of Program Man- agement, Scott Fancher, calls this medium-size airplane "the heart of the market." The 737 MAX boasts increased fuel ef- ficiency as the result of a redesigned wing, improved interface of the wing and engine, and the use of winglets. Boeing, how- ever, is behind Airbus. The 787 MAX program is operating ap- proximately 18 months behind Airbus. Boeing did not have its first flight of the 737 MAX until after the initial delivery of the Airbus A320neo. As of December 2015, Boeing had 3,072 firm orders for the new aircraft and the first 737 MAX is scheduled for delivery in 2017. Since early 2015, there have been more than 4,500 worldwide arders for aircraft in the A320neo product line. In January 2016, German carrier Lufthansa became the first airline to receive and put into use the A320neo's improved airplanes. Airbus was thus first to the market with signifi- cant pre-orders and ready to take a commanding lead in the single-aisle market. It is not uncommon in the aircraft business for manufac- turers to experience small production issues during the intro- duction phase. The A320neo's problems are more significant than usual and are causing a delay in delivery schedules. Although Lufthansa was the first to receive delivery of the A320neo, it was not the initial intention of Airbus. Qatar Air- ways had been scheduled to receive the first delivery in late 2015. However, after testing the aircraft, the airline complained of engine problems and refused to take possession. Airbus be- gan dealing with these issues, but they still persist. They had to compensate Lufthansa because the airline was restricted to using the A320neo only at the airports where it had additional technical staff. Someone once said, "Good things take time." The introduction of the A320neo has been plagued with problems. However, the delays in delivery are expected to end. With more than 4,000 awaiting orders from a multitude of customers, Airbus has the potential to turn something bad into something good. There are a lot of customer relationships that need soothing. How does the company get customers not to cancel orders and choose Boeing's aircraft? Airbus's challenges are far from over. You Make the Call 6-49. What is the decision facing Airbus? 6-50. What factors are important in understanding this deci- sion situation? 6-51. What are the alternatives? 6-52. What decision(s) do you recommend? 6-53. What are some ways to implement your recommen- dation? Sous: Based on ChiBichail The Abus ASOnio Lose Its Momentum?" Seeking Aptu Mash 21, 2016, making.com NEE-meam faxcerse Apl 27, 31e, spdagi an - The re a mom used;" ARELS a.com.binatan/pepecicistanäppight on aed (21) Dominic Gatos, ang 737 MAI Ting with New Engines, High Hopes Seate Times January 29, 2016/www.semes.combushessboeing-amoDICO /big-737-makes-off-on-st-ght/accessed Apr 21, 2016,