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Posted on 09/20/2006 7:39:43 PM PDT by Paleo Conservative
EADS, majority owner of Airbus, is planning a radical costcutting at the European planemaker to offset the strong euro, replenish its earnings and restore investor confidence which has been battered by fresh delays to the A380 superjumbo.
The plans are being drawn up by Christian Streiff, the new Airbus chief executive, ...... and could see cost cuts of at least €2bn (£1.35bn) a year, including job losses and eventually moving production to plants outside Europe.
It comes as Airbus is hit by a further delay of up to six months in deliveries of the A380 planes, putting them two years behind schedule. The delay is likely to trigger a further profits warning from the EADS board next week.
In June EADS said problems with the superjumbo's wiring would hit earnings by €2bn between 2007 and 2010 and only nine planes would be delivered next year against an original plan of 25.
....
His plans are expected to involve a more radical restructuring of the entire business which could see its earnings wiped out by the remorseless rise of the euro against the dollar. Airbus sells its planes in dollars but its costs are in euros. Under Mr Streiff's plans, work that is currently shared between the main Airbus plants in Toulouse and Hamburg would be given to just one. It would involve more components, traditionally bought from European suppliers, sourced overseas to companies operating in the dollar zone.
Ultimately, it is said, output could be switched to new plants such as the factory Airbus is building in China for its A320 planes or even the US itself where the company plans to build a plant in Alabama for the air-to-air refuelling tanker plane it is offering to the Pentagon in a contract worth up to $100bn (£52bn).
(Excerpt) Read more at business.guardian.co.uk ...
Airbus superjumbo faces even longer delays
· Plane now two years behind schedule
· Production could be moved outside Europe
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Dead plane walking.
Is it just me or does that aircraft look like it is smiling?
Yeah, it does.
Maybe Boeing can build it for them.
Bummer. They could build it here for less $$
Hey,that will get things back on schedule...pack up the manufacturing operation and move it to another continent.
Oh my gosh. Who else knows this?
Sure they can move all the production to China. Judging from their military aircraft production they have great quality control. </sarcasm>
it's not smiling. it's jaw just got broken.
Why is it smiling at me? Why?
I think of it more as a mocking smile: "you bastards will never finish me!! Nyahnyah!"
Huh? And WHY is the U.S. Air Force purchasing tankers from Airbus?
Certainly, there are many airline passengers who have no intention of ever flying in an A380.
Why wouldn't airlines take a financial hit now to obtain Boeings that will be more popular with the flying public?
.
"..when Aeroflot, the Russian national carrier, said it would buy 22 A350s and an equal number of Boeing's rival 787 Dreamliners."
Oh Heavens, no Tupolovs? No Androvsky's? But, but, but, Russky's make the best planes? Give me another shot of Vodka, make it a double!
It looks like the inflatable co-pilot from the movie "Airplane," following re-inflation by the babe stewardess.
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