Read the case study and answer you make the call questions For question 6-50 I need two factors and for question 6-51 I need two alternatives.

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 worldwide orders for aircraft in the A320neo product line best-selling aircraft) and introduced the A320neo (new engine n January 2016, German carrier Lufthansa became the first option). The A320neo is available with two different engine airline to receive and put into use the A320neo's improved configurations and will be a more fuel-efficient, single-aisleairplanes. Airbus was thus first to the market with signifi- aircraft, for purchasing by the world's airlines. According to cant pre-orders and ready to take a commanding lead in the Airbus's estimates, the A320neo family of aircraft will lower per- single-aisle market. seat fuel burn by 20 percent while providing additional range, reduced engine noise, and lower pollution emissions Since early 2015, there have been more than 4,500 It is not uncommon in the aircraft business for manufac turers to experience small production issues during the intro- To create this level of efficiency, the new engine options duction phase. The A320neo's problems are more significant are accompanied by Sharklets wingtips, which not only provide than usual and are causing a delay in delivery schedules for better fuel efficiency but also add more passenger comfort. Sharklets cut down aerodynamic drag and offer airlines up toA320neo, it was not the initial intention of Airbus. Qatar Air- four percent fuel burn reduction on longer-range flights. The ways had been scheduled to receive the first delivery in late Sharklets derive their name from their resemblance to a shark's 2015. However, after fin, are made from light-weight composites and are 2.4 meters of tall. With other aerodynamic refinements and significant weightgan dealing with these issues, but they still persist. They had savings, the A320neo has an increased range of approximately to compensate Lufthansa because the airline was restricted to 500 nautical miles. The interior enhancements incorporate a reusing the A320neo only at the airports where it had additional designed cabin that offers larger carry-on luggage space and an tchcl staff. Someone once said, "Good things take time." upgraded air purification system. The cabin upgrades will allow for 20 additional revenue-generating passengers. Although Lufthansa was the first to receive delivery of the the aircraft, the airline complained to take possession. Airbus be- engine problems and refused The introduction of the A320neo has been plagued with problems. However, the delays in delivery are expected to end Airbus also offers its customers other NEO type of aircraft With more than 4,000 awaiting orders from a multitude of including the A319neo and A321neo versions. These new planes customers, Airbus has the potential to turn something bad into share 95 percent of the spare parts used by their currently availsomething good. There are a lot of customer relationships that able versions. More compatibility will allow current A320 cusneed soothing. How does the company get customers not to tomers to make use of parts and equipment that they already cancel orders and choose Boeing's aircraft? Airbus's challenges own, thereby lowering implementation costs. In addition, the are far from over new aircraft include a variety of other improvements over current aircraft. You Make the Call Airbuss greatest competition for the A320neo is from Boeing's most recent entry into the short-haul airliner market, 649. What is the decision facing Airbus? 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 6-52. What 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 -m- e--m"a-mano-anw ur-us-nnmamman Airbus A320neo. As of December 2015, Boeing had 3,072 firm orders for the new aircraft and the first 73 1 "ng, un sala-una mawawansa for delivery in 2017 6-50. What factors are important in understanding this ded- 6-51. What are the alternatives? 6-53. What are some ways to implement your recommen- sion situation? decision(s) do you recommend? dation? 7 MAX is scheduled