enthalpy

enthalpy

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The truth shall set you free, but first it's going to piss you off

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Saturday, June 17, 2006

Posted 6/17/2006 04:19:00 PM by Douglas

World to Airbus: Suck it, commies!

Earlier this week, Airbus - which is 80%-owned by EADS and 20%-owned by the UK's BAE Systems - said problems with wiring meant that it would have to cut its A380 delivery target to nine from an original target of up to 27 in 2007.

EADS also said it expected earnings to be hit by 500m euros ($634m; £342m) a year between 2007 and 2010. The company is predicting that earnings will be dented by a total of 2bn euros.

The A380 will be the world's largest airliner, seating more than 800 passengers across twin decks, and the company has taken 159 firm orders for the plane from 16 carriers, including Emirates, Qantas and Virgin Atlantic.

The worry is that airlines may cancel orders or turn to rival producers such as Boeing, and a number of carriers have said they will be reviewing their deals with Airbus.

Worry no more. Boeing sold two 747 freighters and even one passenger versions of the world's largest production aircraft. But the real story is the 787. While Airbus is trying to use its state-funded influence to pay for modifications needed to upgrade airports to accommodate the gargantuan A380, Boeing's 787 is flying off the shelf. Maybe not literally.

I'll admit I'm a bit biased, but I'll never understand how Airbus could look at the functionality, sales and profitability of the 747 and think they could make it work if it were only bigger.

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