Airbus: Managing the Legacy of a Complex International Merger

Stefan Schmid () and Frederic Altfeld ()
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Stefan Schmid: ESCP Europe Berlin
Frederic Altfeld: ESCP Europe Berlin

A chapter in Internationalization of Business, 2018, pp 63-80 from Springer

Abstract: Abstract When two or more firms engage in a merger, it is usually a highly complex and challenging transaction. It is common wisdom that approximately 50% of all mergers are considered failures. In an international merger, the potential difficulties are often even greater, and they can be due to, for instance, cultural, geographic, or economic differences. The case of Airbus represents a cross-border merger with additional complexity mainly because of idiosyncrasies in the industry environment, such as the strong involvement of political and governmental actors. Therefore, since its inception, Airbus has not only faced fierce competition with its powerful U.S. rival, Boeing, but also constantly struggled with the legacy of being the result of an international merger. The present case will outline some antecedents and consequences of the Airbus merger and discuss the major challenges of Airbus’ international configuration and coordination strategies.

Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:spr:mirchp:978-3-319-74089-8_3

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DOI: 10.1007/978-3-319-74089-8_3

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