Airbus segment develops, manufactures, markets and sells commercial

Airbus SE Acquires Navtech

In March 2016, Airbus was
officially acquired Electronic Flight Bag (EFB) and aeronautical charts and
navigation data solutions provider, Navtech. According to Didier Lux, Head of
Airbus Customer Services, the acquisition will enable Airbus to diversify their
range of digital services and widen their portofolio offering for customers. It
also made Airbus become a complete flight operations solutions provider.1 The aeronautics, aviation and
aerospace science industry is prosperous and increasingly challenging
predicament. It became one of the fastest growing industries in the world. In
2017, there are two new competitors of new airplane which is China and Russia
that will be challenging Airbus and Boeing. Higher Research and Development
investment require to maintain fuel efficiency and increase environmental
constrain. Aerospace manufacturers need to increase their volume of production
to challenge the supply chain.

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Airbus is a European multinational
corporation that was a global leader in aeronautics civil and military products
and related services. Airbus also provides mission aircraft, combat, transportation
and tanker.2
In April 2017, Airbus Group SE changes its name into Airbus SE. In Europe, Airbus is the biggest space enterprise and
the world’s second largest space business.3 Airbus became the
competitor of American companies, such as Boeing, McDonnell Douglas and Lockheed.
The headquarter of Airbus SE was in Taolouse, France. The revenues of Airbus
was € 66.6 billion, nearly triple the € 24.2 billion generated in 2000. Airbus
engages with three segments: Airbus Commercial Aircraft, Airbus Helicopters and
Airbus Defense and Space segments.4
The Airbus Commercial Aircraft segment develops, manufactures, markets and sells
commercial jet aircraft with estimately 100 seats. On the other hand, Navtech is
a start up technology company based in Waterloo Region, Canada. It makes
software that can solve the huge computational problems inherent to flight such
as fuel weight, path, drag, weather and others externalities that need to be
understood for safe landing.5
Navtech achieves annual earnings of around $42 million and employs over 250
employees.6
Navtech already has 400 airline customers around the world including JetBlue,
Air Canada and Delta.

Airbus agrees to acquire 100% Navtech shares. Then
Airbus merges it with Airbus LUCEM and Airbus ProSky to create NAVBLUE.7
Airbus seems to have a serious commitment to represent a path into a safe
flight operations space by buying Navtech. There is no information about how
much Airbus must to spend to acquire Navtech but it looks like a win-win
agreement for both sides.8
Navtech can get access to Airbus global customer base. On the other hand,
Airbus can be more innovative, diversifying their services and flight
operations solutions by supplying electronic
flight bag applications, aeronautical charts, navigation data and
performance-based navigation, flight, aircraft performance and crew planning.
By acquiring Navtech, Airbus can improve their service with Navtech’s
experience in this field for enhancing customer experience of their digital
flight operations services. In order to sustain in this industry Airbus needs
to effectively use their revenue to make a great services and aircraft for
customers. Furthermore, Airbus will need to stay close to its competitor,
Boeing. As we know Airbus and Boeing was two big leading aircraft manufactures
that have been competed long time ago. Boeing is an American multinational
company and also world’s biggest aircraft manufacturer in the world. In order
to compete with Boeing, Airbus needs always to improve their manufacturer and
services. The acquisition of Navtech by Airbus can be one of Airbus strategy to
improve more advance services by digital flight operations. Airbus wants to
improve their customer operations fight to be more safely than Boeing so it can
be profitable for Airbus.

 

1 Bellamy,
Woodrow III. 2016. Airbus Completes
Navtech Acquisition. Avionics. Website: http://www.aviationtoday.com/2016/03/10/airbus-completes-navtech-acquisition/
 Accessed by 5 January 2018

2
Airbus. 2017. Flying as one: Fully
integrated Airbus takes off. Website: http://www.airbus.com/newsroom/press-releases/en/2017/06/airbus-flying-as-one.html
. Accessed by 5 january 2018

3
Ibid.

4 Reuters.
2018. Website: https://www.reuters.com/finance/stocks/overview/AIR.PA
Accessed by 5 January 2018

5
Froklage, Phil. 2016. Airbus acquires
Navtech, expands into flight operations. Website: http://news.communitech.ca/news/airbus-acquires-navtech-expands-into-flight-operations/
Accessed by 5 January 2018

6
Pugliese, David.2016.

7
NAVBLUE. Website: https://www.navblue.aero/who-are-we/
Accessed by 5 January 2018

8
Airbus. 2015. Airbus strengthens its
services business with the acquisition of Navtech. Website: http://www.airbus.com/newsroom/press-releases/en/2015/12/airbus-strengthens-its-services-business-with-the-acquisition-of-navtech.html
Accessed by 5 January 2018