Airbus SE Acquires NavtechIn March 2016, Airbus wasofficially acquired Electronic Flight Bag (EFB) and aeronautical charts andnavigation data solutions provider, Navtech. According to Didier Lux, Head ofAirbus Customer Services, the acquisition will enable Airbus to diversify theirrange of digital services and widen their portofolio offering for customers. Italso made Airbus become a complete flight operations solutions provider.
1 The aeronautics, aviation andaerospace science industry is prosperous and increasingly challengingpredicament. It became one of the fastest growing industries in the world. In2017, there are two new competitors of new airplane which is China and Russiathat will be challenging Airbus and Boeing.
Higher Research and Developmentinvestment require to maintain fuel efficiency and increase environmentalconstrain. Aerospace manufacturers need to increase their volume of productionto challenge the supply chain. Airbus is a European multinationalcorporation that was a global leader in aeronautics civil and military productsand related services. Airbus also provides mission aircraft, combat, transportationand tanker.2In April 2017, Airbus Group SE changes its name into Airbus SE. In Europe, Airbus is the biggest space enterprise andthe world’s second largest space business.3 Airbus became thecompetitor of American companies, such as Boeing, McDonnell Douglas and Lockheed.
The headquarter of Airbus SE was in Taolouse, France. The revenues of Airbuswas € 66.6 billion, nearly triple the € 24.2 billion generated in 2000. Airbusengages with three segments: Airbus Commercial Aircraft, Airbus Helicopters andAirbus Defense and Space segments.
4The Airbus Commercial Aircraft segment develops, manufactures, markets and sellscommercial jet aircraft with estimately 100 seats. On the other hand, Navtech isa start up technology company based in Waterloo Region, Canada. It makessoftware that can solve the huge computational problems inherent to flight suchas fuel weight, path, drag, weather and others externalities that need to beunderstood for safe landing.5Navtech achieves annual earnings of around $42 million and employs over 250employees.6Navtech already has 400 airline customers around the world including JetBlue,Air Canada and Delta.
Airbus agrees to acquire 100% Navtech shares. ThenAirbus merges it with Airbus LUCEM and Airbus ProSky to create NAVBLUE.7Airbus seems to have a serious commitment to represent a path into a safeflight operations space by buying Navtech. There is no information about howmuch Airbus must to spend to acquire Navtech but it looks like a win-winagreement for both sides.8Navtech can get access to Airbus global customer base. On the other hand,Airbus can be more innovative, diversifying their services and flightoperations solutions by supplying electronicflight bag applications, aeronautical charts, navigation data andperformance-based navigation, flight, aircraft performance and crew planning.By acquiring Navtech, Airbus can improve their service with Navtech’sexperience in this field for enhancing customer experience of their digitalflight operations services.
In order to sustain in this industry Airbus needsto effectively use their revenue to make a great services and aircraft forcustomers. Furthermore, Airbus will need to stay close to its competitor,Boeing. As we know Airbus and Boeing was two big leading aircraft manufacturesthat have been competed long time ago. Boeing is an American multinationalcompany and also world’s biggest aircraft manufacturer in the world.
In orderto compete with Boeing, Airbus needs always to improve their manufacturer andservices. The acquisition of Navtech by Airbus can be one of Airbus strategy toimprove more advance services by digital flight operations. Airbus wants toimprove their customer operations fight to be more safely than Boeing so it canbe profitable for Airbus. 1 Bellamy,Woodrow III. 2016. Airbus CompletesNavtech Acquisition.
Avionics. Website: http://www.aviationtoday.com/2016/03/10/airbus-completes-navtech-acquisition/ Accessed by 5 January 20182Airbus. 2017. Flying as one: Fullyintegrated Airbus takes off.
Accessed by 5 january 20183Ibid.4 Reuters.2018.
Website: https://www.reuters.com/finance/stocks/overview/AIR.PAAccessed by 5 January 20185Froklage, Phil. 2016. Airbus acquiresNavtech, expands into flight operations. Website: http://news.communitech.
ca/news/airbus-acquires-navtech-expands-into-flight-operations/Accessed by 5 January 20186Pugliese, David.2016. 7NAVBLUE. Website: https://www.navblue.
aero/who-are-we/Accessed by 5 January 20188Airbus. 2015. Airbus strengthens itsservices 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.htmlAccessed by 5 January 2018