Airbus // Universal Registration Document 2023
1. Information on the Company’s Activities
1.1 Presentation of the Company
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which Airbus is a leader. 2023 provided another significant milestone. The first commercial flight in May of the COMAC C919, the Chinese competitor to the Airbus A320 and Boeing 737, means the Single Aisle market will no longer operate as a duopoly. Hence the right combination of growth, profitability and resilience will be vital to Airbus’ long-term competitiveness. Aerospace remains a major backbone of the global economy and a vital service to people and businesses. Airbus is committed to playing its part in contributing to the aerospace sector continuing to play its vital role in the global economy by building resilience. This will be achieved by having sufficient funds available to withstand shocks, close cooperation with stakeholders to ensure the overall travel value chain survives, seamless coordination along the supply chain to detect issues rapidly, and reinforcement of the Company’s balance sheet to continue investing in future competitiveness. To compete successfully, the Company continues to invest in the evolution of its product portfolio and its decarbonisation roadmap, the development and integration of the latest aircraft technologies, the introduction of new manufacturing technologies including greater use of automation, the implementation of Digital Design Manufacturing and Services, the restructuring of its industrial set-up including the creation of Airbus Atlantic and Airbus Aerostructures, as well as the optimisation of its supply chain relationships. 3.2 Protecting investments important for the longer-term The Company believes that the way to remain attractive to investors, employees and society at large is to be at the forefront of innovation and to be a leader in the global market. This requires discipline on both revenues and the cost base, throughout all Airbus businesses, to gain sufficient volume and profitability to continuously drive the industry forward. Having successfully increased revenue and profit in the years before the COVID-19 crisis, continuous improvement is essential to further support Airbus’ resilience and prepare for future investments. The Company’s range of products is well placed to prosper in the post-pandemic world and it is the strong demand for the current range of products and services that pave the way to a lower-carbon future. The 2030s will be a defining period for Airbus with its hydrogen-powered airliner and next generation Single Aisle aircraft both expected to begin operations. It’s the single-aisle and widebody orders won today that will support the Company through a period of intensive innovation and investment. Every order counts, and 2023 was a record and memorable year. As the Company delivers on its strategy as a leader with European roots and global reach, the Company is uniquely positioned to continue pioneering the industry, deepen customer relationships and expand its role in defence, space and helicopters, all while delivering shareholder value in line with market expectations. 4. Lead the transformation of the aerospace industry Aviation’s licence to grow and operate in the future is linked to sustainability. Improving the environmental impact of our day to-day lives is at the top of agendas throughout the world. While some argue for limiting mobility, the Company is convinced that sustainable air travel is not only possible but achievable in our lifetime.
Making the world a smaller and more transparent place to live makes it safer and more rewarding. The ability to discover, learn, share and remain safe are basic human needs and a guiding star for the Company. Air travel brings prosperity through the connections it makes. One in ten jobs around the world is in the travel and tourism industry, and air travel routes are the arteries of this system. Sufficient prosperity will be required to deliver the climate neutral transformation of the aerospace industry that society demands. Hence, the purpose of the Company is to pioneer sustainable aerospace for a safe and united world. The Company does not, however, operate in a vacuum. Shared value and good governance are integral elements in managing the Company’s vision for a sustainable future. Airbus’ business is deeply connected with environmental, social, and governance (“ ESG ”) objectives through its own efforts to advance on these topics in line with the various international standards, frameworks and initiatives. Defence is a crucial component of security and security is the precondition for a responsible and sustainable world. In this endeavour, the Company is committed to sustainable and responsible business practices, and maintaining the strictest legal and highest ethical standards in full compliance with European and international laws and European and all applicable national export control regulations. The Company’s defence portfolio provides countries with the means to protect their citizens, democratic values and vital infrastructure, which is of incalculable societal value. The capabilities and technologies that the Company develops will help its sovereign customers command the future air domain (teaming, autonomy, digital services, etc.) and protect key space assets -all in a future system-of-systems environment which will bring real operational superiority and offer synergies with civil activities. The successful launch of the Future Combat Air System (“ FCAS ”) Phase 1B paves the way in this direction. The project sees major European defence partners cooperating to prove the viability of new high-end technologies – Next Generation Fighter, Remote Carriers (drones) and a Multi Domain Combat Cloud. The Company must prepare for phase 2 of FCAS to begin after the conclusion of the current phase 1B. This will last until 2028/29 and see a demonstration flight by the next generation fighter jet. Current developments by the Company of future space capabilities and equipment (Low Earth Orbit Positioning, Navigation and Timing technologies, laser communication for high-speed modern connectivity, advanced processors and antennas, Very High Resolution earth observation solutions) are also spearheading future applications for defence or sustainability purposes and information superiority. Importantly, Ariane 6 is also expected to make its maiden flight in 2024. 4.1 Lead the journey towards clean aerospace The Company, and the wider aerospace industry, must find ways to reduce and ultimately eliminate the impact of its activities on the climate. This is a clear expectation of the flying public and society at large, demonstrated by the announcements and commitments of international bodies such as the International Air Transport Association (“ IATA ”) and the International Civil Aviation Organization (“ ICAO ”). In
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Universal Registration Document 2023
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