Andy Li: How the Greatest Aircraft Company Nearly Didn't Happen—The Rise of Airbus

This is a guest article by [ink.] reader Andy Li from Singapore. Contact him at li57509@gapps.uwscea.edu.sg or through his [ink.] profile: here.

Introduction

In the midst of the 1970s, a new airliner landed in the United States of America (USA). Filled with state of the art technology, it was more advanced than any other airliner in its age. However, the aircraft was way too ahead of its time. Airbus sent its plane to almost every corner of the world in an effort to impress the crowd but to no avail. Airbus was still in its early stages, and its promises for the A300 were unproven. Little believed that the company would have a future and survive another couple of years because building an airliner and attempting to dominate the American market are two very different things.

American Aviation

In the 1950s, Europe introduced the concept of jet travel to the world. Jet engines would enable aircraft to fly at least twice the speed of the conventional turboprop aircraft. The British jump-started this new age with the De Havilland Comet, the world’s first commercial jet. However, as the USA developed its aviation sector, the Europeans quickly lost their dominance in the aviation industry. By the 1960s, people around the world were flying American. As the demand for long-range jet travel skyrocketed, American giants such as Boeing, McDonnell Douglas and Lockheed seemed almost unstoppable in its dominance, which was not a surprise given that by then, the USA was manufacturing 80% of the aircraft operating in the world. While on the other side of the planet, the European aircraft manufacturers struggled. They simply did not have the scale of resources nor the technology to compete directly with the Americans. The solution to the problem however manifested in their supersonic airliner Concorde, not because of its breakneck speed, but the way it was being built; by working together. The British and the French achieved what neither could have done alone—building the world’s first supersonic airliner. However, as fuel price increased, the game of the aviation market changed from speed to cost—cheaper, not faster. By then, Europe needed a large people mover that can efficiently transport passengers on shorter routes, this would be referred to as the ‘Air-bus’.

Birth of the Airbus:

Different European aircraft builders had already sketched prototypes for the Airbuses. None of these manufacturers, however, had ever produced a large airliner. The resources required were too expensive to acquire and the risks involved were simply too huge.

Just like the Concorde program, they turned to cooperation, but this time on a much larger scale. Britain, France and West Germany would kick this project off in 1967 and soon was joined by other European nations such as Spain and the Netherlands. Each country would leverage a fair share of their own expertise; the West Germans would build the fuselage, the control system and the cockpit would be engineered by France, the tailplane would be handled by the Spaniards, the wings of the aircraft would be developed by the Britishmen while the Dutch took care of the control surfaces. Their efforts would eventually give birth to a technological masterpiece. The prototype was named the ‘A300’, it was more efficient and more comfortable than anything the Americans had created. Its passenger capacity and efficiency to its cargo space would be unmatched and irresistible for airlines. The aircraft could outclimb and outperform any other airliner. What made the Airbus truly unique was that it had only two engines when every other American jet had three or four. Although two-engined aircraft are commonplace in today’s airports, it was different back then where Trijets and four-engined jets were ubiquitous due to the ETOPS rule. However as powerful and advanced the aircraft was, trouble soon started to hit.

The American Market

By the time the A300 made its public debut, the challenge wasn’t building aircraft, but rather to sell them to airlines. Airbus was a small company that had only sold a handful of jets, and its twin-engined jet was unproven. Nowhere was the scepticism higher than in the USA, where patriotism was at its peak. Foreign products were seen as a bad investment as well as bad publicity. In a bold move, Airbus sent its jet straight to the Americas to prove itself. Onboard was a team of engineers, salesmen, as well as the finest champagne available. The plane would go on more than 40 demonstrations for dozens of airlines, from Brazil to Miami, Houston to New York.

The Fall

To conquer the American market, Airbus designed the jet with the imperial unit system rather than the metric system in Europe. The operating language wasn’t French, German or Dutch, but English. Its engines were American-made General Electric turbofans. However, despite the A300’s value being almost ⅓ American, it did not impress American airline executives. The demonstrations couldn’t change the criticism it faced, and the fact that nobody wanted them. One of Boeing’s executives even dubbed Airbus as a typical government airplane, that they would build a dozen and then go out of business. From today’s perspective, that sounds silly, but at the time, it was not a far-fetched prediction. Between 1975 and 1977, Airbus had not sold a single one of its aircrafts. A global recession followed by a petrol crisis added more fuel to the fire, bringing the company’s sales efforts to a standstill. Calls were even made to stop the production of the airplane, and like that, the impending doom of Airbus seemed like an inevitable reality.

The Sweetest Deal in Aviation History

“The A300 is our biggest new investment. It’s quiet, fuel-efficient and spacious. But if our crew doesn’t make you feel comfortable, it doesn’t matter what plane you are flying.” broadcasted an Eastern Airlines commercial.

In probably the sweetest deal of aviation history, Airbus gave away 4 of its jets for free. In 1977, Eastern Airlines was allowed to try the A300 for six months cost-free. The powerhouse move was nothing short of absolute genius as the A300 quickly proved itself to be easier to maintain, more efficient and at least 20% more efficient than all of Eastern Airlines’ fleet. Impressed with the A300’s performance and spurred by the deal from Airbus, Eastern Airlines signed a purchase of 23 more A300s worth $773 million, the single greatest American purchase for a foreign aircraft in history. At last, Airbus’ gamble paid off.

With a major American airline operating the A300, Airbus quickly gained credibility and earned the planned reputation of its safety, comfort and efficiency. In 1977, the A300 became the first twin-engined jet to be allowed to fly above the duration of an hour set by the ETOPS rule. It increased the versatility of the A300 and kickstarted an entirely new market for such aircraft.

With an improving economy in the 1970s, Airbus finally caught on. By the 1980s, hundreds of orders had been placed globally.

The Legend Lives On

Airbus today is known for making some of the most comfortable, most ambitious and most reputable aircraft. Such as the remarkable A380 double-decker, and the all-new A350. Airbus has flipped the game, from Americans dominating the entire aviation history to Europeans gaining back the throne. Back then, the juggernauts of aircraft were Boeing, Lockheed and practically all other American jet makers. Airbus’ meteoric rise is more than obvious today. Up high in the sky of today, the only two companies dogfighting are Boeing and Airbus. An equal market of half American and half European. 50-50.