Annual Report 2016, Registration Document 2016 and Financial
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Annual Report 2015 Registration Document 2015 Financial Statements 2015 Q Financial Statements 2015 122334455 1 Information on Airbus Activities 1.1 Presentation of the Company Relationship between Airbus Group SE and Airbus In line with the previous organisational structure, Airbus management service agreements have been put in place with Group SE itself does not engage in the core aerospace, defence the subsidiaries and services are invoiced on a cost plus basis. or space business of Airbus but coordinates related businesses, For management purposes, Airbus Group SE acts through its sets and controls objectives and approves major decisions for Board of Directors, Group Executive Committee, and Chief Airbus. As the parent company, Airbus Group SE conducts Executive Offi cer in accordance with its corporate rules and activities which are essential to Airbus’ activities and which procedures as described below under “Corporate Governance”. are an integral part of the overall management of Airbus. In particular, fi nance activities pursued by Airbus Group SE are Within the framework defi ned by Airbus Group SE, each Division, in support of the business activities and strategy of Airbus. In Business Unit and subsidiary is vested with full entrepreneurial connection therewith, Airbus Group SE provides or procures responsibility. the provision of services to the subsidiaries of Airbus. General 1.1.2 Commercial Aircraft Airbus Commercial Aircraft is one of the world’s leading aircraft over the long-term and expanding its customer services offering. manufacturers of passenger airliners. Airbus Commercial To achieve these goals, Airbus Commercial Aircraft is actively: Aircraft helps to shape the future of air transportation and drive steady growth around the world. Airbus Commercial Aircraft Developing the Most Comprehensive Line seeks incremental innovative technological solutions and the of Products in Response to Customer Needs most effi cient sourcing and manufacturing possible – so airlines Airbus Commercial Aircraft continuously seeks to develop can grow and people can connect. Airbus Commercial Aircraft’s and deliver new products to meet customers’ evolving needs, comprehensive product line comprises successful families of while also improving its existing product line. The A330neo (new jetliners ranging in capacity from 100 to more than 600 seats: engine option) is one of the evolutions to the A330 family and the the single-aisle A320 family, which is civil aviation’s best-selling A320neo (new engine option) is one of many product upgrades product line; the A330 family; the new-generation widebody to the A320 Single-Aisle family to maintain its position as the A350 XWB; and the fl agship double-deck A380. Across all its most advanced and fuel-effi cient single-aisle aircraft family. aircraft families Airbus Commercial Aircraft’s unique approach ensures that aircraft share high commonality in airframes, Airbus Commercial Aircraft is also currently pursuing on-board systems, cockpits and handling characteristics. (i) development and production on the A350 XWB programme, This signifi cantly reduces operating costs for airlines. See and (ii) research on the development of new aircraft in the short- range, medium-range and long-haul segments. “— 1.1.1 Overview” for an introduction to Airbus Commercial Aircraft. To support the A350 XWB ramp-up and other production Airbus Commercial Aircraft’s global presence includes, on top of increases, a new super transporter is under development, with France, Germany, Spain and the United Kingdom, fully-owned the fi rst of fi ve Beluga XL aircraft to enter into service in 2019. subsidiaries in the United States, China, Japan, India and in the Expanding its Customer Services Offering Middle East, and spare parts centres in Hamburg, Frankfurt, Washington, Beijing, Dubaï and Singapore. Airbus Commercial Airbus Commercial Aircraft seeks to remain at the forefront of Aircraft also has engineering and training centres in Toulouse, the industry by expanding its customer services offering to meet Miami, Mexico, Wichita, Hamburg, Bangalore, Beijing and customers’ evolving needs. As a result, Airbus Commercial Singapore, as well as an engineering centre in Russia. There Aircraft has developed a wide range of value-added and are also more than 150 fi eld service offi ces around the world. customised services which customers can select based on Airbus Commercial Aircraft also relies on industrial co-operation their own make or buy policy and needs. This approach provides and partnerships with major companies and a wide network of Airbus operators with solutions to signifi cantly reduce their suppliers around the world. operating costs, increase aircraft availability and enhance the quality of their operations. Strategy Building a Leaner, More Fully Integrated Company Airbus Commercial Aircraft’s primary goal is to deliver strong In order to build a leaner, more fully integrated company and results in a sustained manner, while commanding a further thereby bolster its competitiveness, Airbus Commercial Aircraft increased share of the worldwide commercial aircraft market is adapting its organisation to foster an entrepreneurial spirit Registration Document 2016 - AIRBUS ° 28 ° Q Annual Report 2016 Registration Document 2016 Financial Statements 2016 122334455 1 Information on Airbus Activities 1.1 Presentation of the Company and empower more teams, while maintaining harmonised cyclical downturn for airlines in terms of traffi c (both passenger processes across all sites. For series programmes, additional and cargo), yields and profi tability. Preliminary fi gures released at responsibilities and means have been delegated to plants for the end of 2016, by the International Civil Aviation Organisation 1 delivery at increased rates. Airbus also has become a more (ICAO), confi rmed that some 3.7 billion passengers made use of integrated company, working towards one common culture the global air transport network for their business, tourism needs across its global workforce, as well as aligning processes and or for simply visiting friends and relatives (VFR) in 2016. The planning with the global supplier base. annual passenger total is up 6.0% compared to 2015 and the number of departures rose to approximately 35 million globally. Market World passenger traffi c, expressed in terms of total scheduled revenue passenger-kilometres (RPKs), posted an increase Market Drivers of 6.3% with approximately 7,015 billion revenue passenger The main factors affecting the commercial aircraft market include kilometres being performed. passenger demand for air travel, cargo activity, economic In the long-term, Airbus Commercial Aircraft believes that air growth cycles, oil prices, national and international regulation travel remains a growth business. Based on internal estimates, (and deregulation), the rate of replacement and obsolescence Airbus Commercial Aircraft anticipates a growth rate of 4.5% of existing fl eets and the availability of aircraft fi nancing sources. annually during the period 2016-2035. If the actual growth rate The performance, competitive posture and strategy of aircraft equals or exceeds this level, Airbus Commercial Aircraft expects manufacturers, airlines, cargo operators and leasing companies that passenger traffi c, as measured in revenue passenger as well as wars, political unrest, pandemics and extraordinary kilometres, would more than double over the forecast period. events may also precipitate changes in demand and lead to Cyclicality. Despite an overall growth trend in air travel, aircraft short-term market imbalances. order intake can vary signifi cantly from year to year and within In recent years, China and India have emerged as signifi cant different regions, due to the volatility of airline profi tability, new aircraft markets. According to internal estimates, they cyclicality of the economy, aircraft replacement waves and are expected to constitute the fi rst and fi fth most important occasional unforeseen events which can depress demand for markets by aircraft delivery value, respectively, in the next twenty air travel. However, new product offerings and growth across years. As a result, Airbus Commercial Aircraft has sought to the market has resulted in good levels of order activity in recent strengthen its commercial and industrial ties in these countries. years. In the last seven years, order totals exceeded record New aircraft demand from airlines in the Middle East has also Airbus Commercial Aircraft deliveries thus strengthening both become increasingly important, as they have rapidly executed order book and backlog totals. strategies to establish a global presence and to leverage the Despite some cyclicality in airline demand, Airbus Commercial benefi ts the region can deliver. Aircraft aims to secure stable delivery rates from year to year, The no-frills / low-cost carriers also constitute a signifi cant supported by a strong backlog of orders and a regionally sector, and are expected to continue growing around the world, diverse customer base. At the end of 2016, the backlog stood particularly in Asia, where emerging markets and continued at 6,874 aircraft, representing around ten years of production deregulation should provide increased opportunities. While at current rates. Through careful backlog management, close single-aisle aircraft continue to be a popular choice for these monitoring of the customer base and a prudent approach carriers, demand for Airbus Commercial Aircraft’s range of twin- to