Airbus: Financial Benefits & Costs
The company is also likely to benefit from the mentioned costing systems due to the various advantages mentioned in the relevant sections of the paper.
This was done in 1988 by sprucing the supervisory board of the company, the creation of the executive board, and the establishment of the chief executive position. Despite of all that, Airbus company still captured the a huge share in the aircraft commercial market which was steadily growing and even won several contracts with the Air Canada and the Canadian Airlines International in the late 1980. Up to now, Airbus still owns the largest market share in the industry. The company uses standard costing and ABC system of costing that has benefited it from the past. The relevance, application, advantages, disadvantages, and benefits of various costing systems such as Activity Based costing, standard costing, and relevant costs will be described in the sections below. The Airbus Company already applies ABC system and benefits from it. The company is also likely to benefit from the mentioned costing systems due to the various advantages mentioned in the relevant sections of the paper. Section I: Description of Firm Airbus is a leading manufacturer of aircrafts in the world and is headquartered in Toulouse, France. Its commercial know-how, customer support, efficiency in manufacturing, and technological leadership has impelled it to the front position of the industries of air transport and aviation. The mission of the Airbus firm is to provide the best suited aircraft to the needs of the market and to provide support for those aircraft with the highest service quality. The comprehensive and modern line of product of the Airbus firm entails great families of successful aircraft that ranges between 107 and 525 seats: the wide body long ranges A340/A330 and the following generation A350 XWB Family; the single aisle Family of A320; and the double deck Family of A380. Airbus captures almost half of all the agreements of airline orders consistently in the commercial market place. The firm’s customers all over the world have more than 11000 orders of Airbus jetliners, and the deliveries as at 12 December 2011 totaled up to 7000. The firm continually broadens its range of products and scope through applying its proficiency to the military market. The firm is also dedicated to assisting airlines in promoting their fleets’ profitability. It delivers various services in a wide range of support areas that are tailored to the requirements of the operators’ individual need all over the world (Congressional Research Service, 1992). Airbus strives as an industry leader to be a competent eco-efficient firm. The firm was actually the first company of aeronautics to earn the ISO 14001 environmental certification in the world for all its products and production sites for its whole cycle. The company is dedicated to see to it that the air transport remains the eco-efficient mode of delivering value and transport at very minimal impact on the environment. In its fly by wire product line of jetliners, the company’s approach make certain that its aircraft have the highest possible degree share of the commonality in handling characteristics, on board systems, and cockpits. The company also has a history of putting together from different countries the best of them around the world. This is underscored by the global network of the company’s suppliers drawn from over 30 different countri