Xenophon Strategies

Airbus Americas

Overcoming Public Misperceptions

Public perception frequently influences political dealings, and politics is at the core of any bilateral negotiation.

Airbus has had a North American presence since the late 1970s, but it was not until 1988 that the European manufacturer started to achieve a significant market share in the United States and Canada. With the arrival of the A320 family of fly-by-wire aircraft, the Airbus presence in North America was solidified. But Airbus faced unique challenges as a European company whose primary competition – Boeing – has long been an icon of American industry.

With the arrival of the A320 family of fly-by-wire aircraft, the Airbus presence in North America was solidified.

The Airbus-Boeing rivalry intensified with increased consolidation within the industry and greater market share equality. Although subsidies have always been a point of contention, with Boeing asserting that Airbus competes with an unfair advantage, the trade dispute has escalated significantly. The controversy surrounding the U.S. Air Force tanker replacement also increased the visibility of both Airbus and parent company EADS.

This visibility has its pros and cons. On one hand, it introduced Airbus to a larger audience and more fully identifies the company’s current and future offerings. On the other hand, Airbus had often been vilified in the media and by government officials as a “foreign” company that takes jobs away from American workers. That is, of course, an unfair characterization of a company that operates in an increasingly global economy.

Strategy

Public perception frequently influences political dealings, and politics is at the core of any bilateral negotiation. This point had not been lost on Airbus or EADS, both of which ramped up efforts to match Boeing’s very influential rhetoric. Xenophon Strategies provided strategic counsel to assist with these endeavors.

Examples:

• Airbus North America executives met with top editors and reporters at The Washington Post to discuss a wide range of topics.
• Xenophon media specialists provided background information on each editor and reporter to ensure that Airbus was well-prepared. The meeting was beneficial to both entities because it opened lines of communications and enabled a better understanding of Airbus, its products and its North American personnel.
• Xenophon has provided writing, editing and story placement assistance to Airbus and EADS on numerous occasions. This includes a Washington Post letter to the editor written in response to a pro-Boeing tanker letter. Timing of the EADS letter (late December), resulted in it being initially overlooked. Xenophon worked with Post editors and the letter was published.
• Xenophon assisted Airbus in developing a proactive media strategy to enhance the profile of Airbus North America. The media strategy included specifics for both regional and national outreach that targeted business and trade press. Current Airbus efforts are focused on rollout of the A380.
• Xenophon has provided Airbus with extensive media monitoring and other information regarding subsidies so that issues management is current and in step with EADS and Toulouse personnel.

Though Airbus North America works independently on most issues, close collaboration with Europe is vitally important to maintaining cohesion.