Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Hodar
The very next sentence states that they plan to hit the break-even point in 2015, despite the drop in the US dollar and delays.

What Hans Ring was saying in the sentence you pointed to is that Airbus hopes to break even on the production cost of an individual aircraft by 2015. Which means that today it costs Airbus more to manufacture an A380 than they sold it for, ignoring R&D costs.

As they gain experience, the production cost will go down, and by 2015 it should cost less to make than the aircraft sold for. Then you can begin to recoup your R&D costs, which is why they need to sell at least 420 aircraft to break even for the entire A380 project.

But first they have to win 420 orders, which is not going to happen by 2015.

82 posted on 03/21/2011 12:39:29 PM PDT by Yo-Yo (Is the /sarc tag really necessary?)
[ Post Reply | Private Reply | To 41 | View Replies ]


To: Yo-Yo

With the world economy where it is, I believe you are correct. I doubt they will sell 420 of the A380’s in the next 5 years.

But, the manufacturing skills they have developed for the A380 should be able to be leveraged against other aircraft in their portfolio. Future revisions of their aircraft should benefit from the lessons learned in building the A380.


85 posted on 03/21/2011 1:08:59 PM PDT by Hodar (Who needs laws .... when this "feels" so right?)
[ Post Reply | Private Reply | To 82 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson