Airbus 2015 Annual Report Download - page 65

AIRBUS GROUP REGISTRATION DOCUMENT 2015 l 33 l
Informationon GroupActivities
Registration Document 2015
1.
1.1 Presentation of the Group
Customer Services
Airbus Customer Services’ prime role is to support its customers
in operating their Airbus fleet safely and profitably and to the
satisfaction of passengers all around the world. As a result of
its continued growth, Airbus’ customer base has increased
consistently over the past years reaching 8,600aircraft in-
service operated by 400airlines. The Airbus fleet is maintained
by 100Maintenance and Repair Organisations and partially
owned by 100 leasing companies.
A worldwide network of more than 5,000people covers all areas
of support from technical engineering/ operational assistance
and spare parts supply, to crew and maintenance training.
Hundreds of technical specialists provide Airbus customers
with advice and assistance to Airbus customers 24hours a
day, 7days a week. There are more than 250 representatives
positioned around the world in more than 150stations close to
the airlines they serve, and an international network of support
centres, training centres and spares’ warehouses.
Beyond the core customer support activities, Airbus Customer
Services department has developed a wide range of modular
and customised services driven by the unique added value
that an aircraft manufacturer can bring. These services are
clustered around five main domains of activity: Flight Hours
and LRU Solutions, Upgrades Solutions, Material and Supply
chain Solutions, training solutions and e-Solutions for Flight
Operations, Engineering and Maintenance. Innovative and
integrated solutions have been developed in these domains,
such as Power by the Hours Tailored Support Package (FHS-
TSP), which provide integrated engineering, maintenance and
component packages to enable customers to reduce their
investments and support costs while increasing operational
reliability.
Part of Airbus’ growth strategy in the area of customer services
consists of industrialised development. One recent step in
implementing this strategy is the creation of a 100% Airbus
subsidiary company named SATAIR Group: a world leading
supplier of aircraft parts and service solutions for aircraft
maintenance. The merger of the state-of-the-art service
& support portfolios manager Satair and Airbus Material
Management enhances availability of product and service for
airlines’ daily operation.
Customer Finance
Airbus favours cash sales, and does not envisage customer
financing as an area of business development. However, Airbus
recognises the commercial need for manufacturers to assist
customers in arranging financing of new aircraft purchases,
and in certain cases to participate in financing those aircraft
for the airline.
Extension of credit or assumption of exposure is subject to
corporate oversight and monitoring, and follows strict standards
of discipline and caution. Airbus’ dedicated customer finance
team has accumulated decades of expertise in aircraft finance.
When Airbus finances a customer, the financed aircraft generally
serve as collateral, with the engine manufacturer participating
in the financing. These elements assist in reducing the risk
borne by Airbus. Airbus’ customer financing transactions are
designed to facilitate subsequent sell-down of the exposure to
the financial markets, third-party lenders or lessors.
In 2015, Airbus continued to benefit from market appetite
for both aircraft financing and sale and leaseback lessor
opportunities. The markets, however, remain unpredictable
and Airbus continues to allow for potential additional financing
exposure. Management believes, in light of its experience, that
the level of provisioning protecting Airbus from default costs is
adequate and consistent with standards and practice in the
aircraft financing industry. See “—Management’s Discussion
and Analysis of Financial Condition and Results of Operations”.
Asset Management
The Airbus Asset Management Division was established
in 1994 to manage and re-market used aircraft acquired by
Airbus, originally as a result of customer bankruptcies, and
subsequently in the context of certain buy-back commitments.
The Division operates with a dedicated staff and manages a
fleet comprised of used Airbus aircraft across the range of
models. Through its activities, the Asset Management Division
helps Airbus to respond more efficiently to the medium- and
long-term fleet requirements of its customers.
Its key roles comprise commercial and risk management of the
Airbus used aircraft portfolio, as well as the enhancement of all
Airbus products’ residual value. Most of the aircraft are available
to customers for cash sale, while some can also be offered on
operating lease whereby the Airbus Asset Management team
then focuses on the sell down of the aircraft with lease attached.
At the end of 2015, the Airbus Asset Management portfolio
contained 47aircraft. Across the year2015 the Airbus Asset
Management Division succeeded to place 21 used aircraft.
The Asset Management Division also provides a full range of
remarketing services, including assistance with entry-into-
service, interior reconfiguration and maintenance checks.
Production
Industrial Organisation
Each task in the building of Airbus aircraft (from design to
production) is allocated to a designated plant. The Airbus plants
are typically organised around different aircraft components
and sections, in component delivery teams. Each component
delivery team is either in charge of one aircraft programme, or
organised by manufacturing technology clusters depending on
the optimum solution for each plant. Every plant is organised with
production, engineering, quality, supply chain, manufacturing,
engineering and logistics capabilities to ensure a seamless
production flow of operations.
Financial Statements 2015
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QRegistration Document 2015
Annual Report 2015 Financial Statements 2015
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