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Subject: Airbus in trouble over A-380 delays
PowerPointRanger    6/15/2006 9:26:18 AM
The A-380 is facing another six-month production delay. It's starting to look like Airbus bit off more than it could swallow. They aren't being very specific about the reasons for the delays (using vague terms like "bottle-necks" and "testing"). http://news.bbc.co.uk/1/hi/business/4611047.stm http://www.financialexpress.com/latest_full_story.php?content_id=130561 And with these further delays, they might lose some of the orders they already have. With $12 billion in development costs, this is starting to look like a major disaster for Airbus. On top of that, many of the executives sold off their shares before the announcement of the delay. http://www.eitb24.com/portal/eitb24/noticia/en/business/delay-of-a380-eads-management-may-shed-light-on-airbus-production?itemId=D37362&cl=%2Feitb24%2Feconomia&idioma=en Can anyone say "insider trading"? This could be a financial scandal of ENRON proportions!
 
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PowerPointRanger    The Scandal   6/16/2006 4:48:02 PM
The European stock investigators are looking into the suspicious stock sales surrounding the delays on the A380. An number of executive and their family members sold large amounts of stock after delays were suspected, but not announced. http://www.usatoday.com/money/biztravel/2006-06-16-airbus-forgeard_x.htm I doubt this will cause Airbus to implode in the same way as Enron, because Airbus still has profitable lines, primarily the A320, and a large back-log of business after last year's booming sales. But you can bet there will be criminal investigations and probably a shake-up in leadership. Airbus has two new models, the A350, which competes against the Boeing 777 & 787, and A380, which competes against the 747. Both are in trouble. The A350 has 100 orders, about the minimum for production to begin, but isn't getting any new orders because it is basically on old fuselage on new composite wings. Buyers prefer the all composite 787, which will be lighter and offer siginicant savings in fuel consumption. The A350 is being reconsidered, which probably means signicant delays for redesign (think years). During all that time, Boeing will happily be selling 787's (cornering that sector of the market, mid-sized long-range aircraft). The A380 faces another delay. It has 159 orders and nothing more is likely until Airbus starts showing it can deliver what it promises. It needs 250 orders to turn a profit. Of the 159, none have cancelled...yet. Buyers are negotiating with Airbus to see if it is in their interest to stay. Airbus will probably lose a big chunk of their profit to keep the buyers happy. Again, Boeing cleans up on the lucrative high-end of the market in the meantime. Airbus is trouble.
 
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Professor Fickle    RE:The Scandal   6/20/2006 7:24:54 PM
dam it i wont ro fly in one!
 
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giblets    A350 now A370   6/23/2006 8:06:50 AM
I think the A350 is now renamed the A370, as there are significant changes to the design since then.
 
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Nichevo    RE:A350 now A370   6/23/2006 12:10:15 PM
Well, of course, because 370 is 20 better than 350. Why not cut to the chase and call it the Infinity? Then the next model can be the Infinity-plus-one, etc.
 
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PowerPointRanger    RE:A350 now A370   6/30/2006 12:54:28 AM
Yeah, but that 20 extra is going to cost Airbus time. The A350 might have been ready in 2010. The A370 won't be ready until 2012, by which time the 787 will have been in service for 4 years. Airbus has 182 order (100 firm and 82 pending). How many of those orders do you think will dry up as a result of this delay?
 
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PowerPointRanger    RE:A350 now A370   6/30/2006 12:55:09 AM
Yeah, but that 20 extra is going to cost Airbus time. The A350 might have been ready in 2010. The A370 won't be ready until 2012, by which time the 787 will have been in service for 4 years. Airbus has 182 order (100 firm and 82 pending). How many of those orders do you think will dry up as a result of this delay?
 
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Nichevo    RE:A350 now A370 182 minus (20?)   6/30/2006 12:59:51 AM
Bwahaha, depends how fast Boeing can turn the crank. But politics will weigh, of course, who wants to keep the Euros sweet or diss them, like that. If the 370 comes off without a hitch, they might just save it - but the next little hiccup and they may as well junk their dies.
 
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PowerPointRanger    Airbus bosses resign   7/3/2006 12:11:57 PM
Troubles get even worse for Airbus. The Co-executives in charge of Airbus quit under pressure. http://www.aero-news.net/index.cfm?ContentBlockID=941fcc92-7216-41c1-88f9-24ec95b59e77 Also an audit of Airbus returned a valuation at the low end of expectations. Also, BAe is backing out of a deal to sell its 20% stake of the company. Also, numerous buyers of the A350 & A380 are threatening to cancel orders over production delays and dissatisfaction with designs. Also, Airbus has admitted that its first A380 sales will be at a loss because of the delays. The A350 & A380 are programs in which Airbus will have invested a combined $22b before either plane makes its first commercial flight. I think it's safe to say, it will be a long time before Airbus makes a profit on these two programs (if ever).
 
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wjr1       8/29/2006 9:01:12 PM

I really wonder whether the A380 is actually going to get out into the world at any near term date. Today the A380 was grounded due to indicator problems (at least) with the landing gear observed during unrelated testing (I believe engine flight tests). We may see this all dissolve into Gallic hysteria -- appropriate as it derives from Gallic hubris.

Best,
wjr

 
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PowerPointRanger    Here we go again!   9/23/2006 10:47:22 AM
The A380 is facing yet another delay (the third), again over wiring problems.
 
 
This is almost becoming comic.  Is it obvious to everyone now that Airbus bit off more than it could chew?
 
 
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