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Airbus recalculates its superjumbo math
Expatica (AFP) ^ | Oct 19, 2006

Posted on 10/19/2006 6:57:27 AM PDT by trashcanbred

PARIS, Oct 19, 2006 (AFP) - Delays to the Airbus A380 superjumbo jet program mean that it will now have to sell 420 planes to break even compared with a previous estimate of 270, the parent group EADS said Thursday.

The plane has an average catalogue price of EUR 244 million and 159 firm orders have been received so far from 16 airlines.

The negative financial impact of the delays, which now stand at almost two years, will lead to a loss of earnings totalling EUR 6.3 billion between now and 2010, the European Aeronautics Defence and Space Company said.

This year, the delays would trim EUR 1.1 billion from core profits, expressed as earnings before interest and tax (EBIT), EADS added.

In an interview with the Wall Street Journal Europe published earlier in the day, EADS co-chairman Thomas Enders said Airbus would close factories and shed jobs if necessary, even in the face of objections by unions and politicians, to turn Airbus around.

"Everything is on the table," the newspaper quoted Enders as saying.

(Excerpt) Read more at expatica.com ...


TOPICS: Extended News; News/Current Events
KEYWORDS: a380; airbus; airbust; aviation; eads; europe
Ouch... some of these stories almost make it sound like the A380 is going to bust the company..
1 posted on 10/19/2006 6:57:28 AM PDT by trashcanbred
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To: trashcanbred

Government-backed "companies" can never go bust, unless they finally and completely bankrupt the taxpayers who are forced to shoulder the burden.


2 posted on 10/19/2006 6:58:49 AM PDT by mvpel (Michael Pelletier)
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To: trashcanbred

3 posted on 10/19/2006 7:07:32 AM PDT by Niteranger68 (I gigged your peace frog.)
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To: trashcanbred

Airbus Nicht Fly.


4 posted on 10/19/2006 7:08:44 AM PDT by N. Theknow ((Kennedys - Can't drive, can't fly, can't ski, can't skipper a boat - But they know what's best.))
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To: trashcanbred
It's good to know that I wont have to bail out this floundering company.

Sucks to be Euro though....

5 posted on 10/19/2006 7:11:13 AM PDT by avg_freeper (Gunga galunga. Gunga, gunga galunga)
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To: mvpel

.

Let the French Taxpayers eat cake, circa 2006..?

.


6 posted on 10/19/2006 7:13:18 AM PDT by ALOHA RONNIE ("ALOHA RONNIE" Guyer/Veteran-"WE WERE SOLDIERS" Battle of IA DRANG-1965 http://www.lzxray.com)
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To: trashcanbred

How long did it take Boeing to sell 500 747s? Airbus may never get there.


7 posted on 10/19/2006 7:16:09 AM PDT by Boiler Plate (Mom always said why be difficult, when with just a little more effort you can be impossible.)
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To: trashcanbred
A-380...Hmmmm

Stick a fork in it...
It's done...

8 posted on 10/19/2006 7:21:18 AM PDT by Wings-n-Wind (All of the answers remain available; Wisdom is gained by asking the right questions!)
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To: Boiler Plate

According to http://www.century-of-flight.freeola.com/Aviation%20history/aviation%20timeline/1980.htm it completed it's 500th on December 9th,1980. Since Boeing started production in 1970, that would make 10 years.


9 posted on 10/19/2006 7:22:43 AM PDT by trashcanbred (Anti-social and anti-socialist)
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To: trashcanbred
Thanks. This doesn't paint a pretty picture for AB. In 1970 there wasn't anything like the 747 the DC10 and L1011 did not come around for a few years. AB may have lost big time on this bet. I guess the question is how much are these euros willing to soak the general populace in order to keep AB afloat?
10 posted on 10/19/2006 7:34:15 AM PDT by Boiler Plate (Mom always said why be difficult, when with just a little more effort you can be impossible.)
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To: Boiler Plate

According to Wikipedia at http://en.wikipedia.org/wiki/Boeing_747, the from 1990 to 1996 there were 342 747's delivered. From 2000 to 2006 there were 141. Not a pretty statistic.

The Factory in Everett is a very neat place to visit but it was sad to see so "little" work being done.


11 posted on 10/19/2006 7:46:14 AM PDT by trashcanbred (Anti-social and anti-socialist)
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To: trashcanbred

So over 36years there have only been about 1400 747s built. Many are still in use and with the new 747 800 and 787 coming out it the market for the 380 is getting smaller. I don't think they will ever make a dime off of the 380 and are problably hoping to just come close to breaking even.


12 posted on 10/19/2006 8:36:27 AM PDT by Boiler Plate (Mom always said why be difficult, when with just a little more effort you can be impossible.)
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To: trashcanbred
Ouch... some of these stories almost make it sound like the A380 is going to bust the company..

If not to weaken Airbus's position in the global market, isn't that pretty much the case? In this time of high fuel prices, isn't trying to sell a giant like the A380 just like trying to sell the gas guzzling suvs? Not to mention the time wasted on developing the A380 might have been better spent on developing smaller more fuel efficient aircraft.

13 posted on 10/19/2006 8:37:47 AM PDT by AxelPaulsenJr (Keep your friends close and your enemies closer.)
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To: avg_freeper
"But trade unions and some politicians in France and Germany have warned of the possible consequences. . . "

Sadly, you are right, the European politicians will not let this company go under and they will find some way to slip them the money needed to keep going. It does suck to be a taxpayer in Euroland already, but, this is just a bit more tribute for the king and his projects!
14 posted on 10/19/2006 8:37:49 AM PDT by lowbuck (The Blue Card (US Passport). . . Don't leave home without it!)
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To: Paleo Conservative

ping


15 posted on 10/19/2006 8:39:04 AM PDT by Ready4Freddy (Everyone knows there's a difference between Muslims and terrorists. No one knows what it is, tho...)
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To: Ready4Freddy

I like your tagline...


16 posted on 10/19/2006 8:40:40 AM PDT by null and void (Age and experience -- It makes no sense to get one without the other. - Sundog)
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To: trashcanbred
Memo to Europe:

Socialism still doesn't work as well as Capitalism.

Best regards,
The USA

17 posted on 10/19/2006 8:41:18 AM PDT by TChris (The United Nations is suffering from delusions of relevance.)
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To: null and void
Stole it from a post here at FR, like all (most?? :) good taglines... ;>)

The entire phrase wouldn't fit, it was something like "...Trouble is, no one knows what that difference is."

18 posted on 10/19/2006 8:49:19 AM PDT by Ready4Freddy (Everyone knows there's a difference between Muslims and terrorists. No one knows what it is, tho...)
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To: trashcanbred

Hate those darn commas at the end of a link - http://en.wikipedia.org/wiki/Boeing_747 Looks like Boeing has 41 firm orders for 747s per their site. Not bad for a 36 yo plane.


19 posted on 10/19/2006 8:51:33 AM PDT by Ready4Freddy (Everyone knows there's a difference between Muslims and terrorists. No one knows what it is, tho...)
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To: Boiler Plate; trashcanbred; Ready4Freddy; COEXERJ145; microgood; liberallarry; cmsgop; ...
How long did it take Boeing to sell 500 747s? Airbus may never get there.

I'm not sure when it was sold, but the 500'th 747 was delivered in 1981 which was 12 years after the first deliveries. Boeing delivered 4 in 1969, 92 in 1970, and 69 in 1971. Two years after Boeing received the FAA certification for the 747-100 on December 30,1969, they had delivered 165 747's. I can't see Airbus delivering their A380's that fast.

If you want on or off my aerospace ping list, please contact me by Freep mail.


20 posted on 10/19/2006 10:44:31 AM PDT by Paleo Conservative
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To: trashcanbred

Pardon me as I laugh my head off....


SOME VERY WRONG PREDICTIONS IN HISTORY
"Heavier-than-air flying machines are impossible." Lord Kelvin, President, Royal Society, 1895.

"Everything that can be invented has been invented." Charles Duell, Director of U.S. Patent Office, 1899.
"Sensible and responsible women do not want to vote." Grover Cleveland, 1905.

"There is no likelihood man can ever tap the power of the atom." Robert Millikan, Nobel Prize in Physics, 1923.

"Who the hell wants to hear actors talk anyway?" Harry M. Warner, Warner Bros. Pictures, 1927.

"Babe Ruth made a big mistake when he gave up pitching." Tris Speaker, 1921.

"I'm sure we'll have the top position for years and years to come." Jean-Luc Lagardere, chairman of EADS, Airbus A380 launch' 2001


21 posted on 10/19/2006 10:50:05 AM PDT by NavyCanDo
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To: N. Theknow

HA!


22 posted on 10/19/2006 10:57:46 AM PDT by July 4th (A vacant lot cancelled out my vote for Bush.)
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To: NavyCanDo
"I'm sure we'll have the top position for years and years to come." Jean-Luc Lagardere, chairman of EADS, Airbus A380 launch' 2001

If Airbus is going to be on top in 2006, they better get cracking.

Boeing has 753 orders as of Oct. 10.

Airbus will need to sell nearly 500 more planes this year to pass them, even if the Boeing sales guys take the rest of the year off.

23 posted on 10/19/2006 11:01:16 AM PDT by UNGN (I've been here since '98 but had nothing to say until now)
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To: trashcanbred

This plane will never be profitable....

Its appeal is too narrow, they were going to have a difficult time sell 300 of these things over its life expectancy, to think they will sell nearly 50% more?

Lessons for future managers everywhere in this one.


24 posted on 10/19/2006 11:02:21 AM PDT by HamiltonJay
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To: Paleo Conservative

What a cute picture! Don't you just want to scratch him behind the ears (doors)? ;)


25 posted on 10/19/2006 12:01:54 PM PDT by phantomworker ("Whatever you do will not be enough, but it matters enormously that you do it." - Gandhi)
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To: HamiltonJay
Its appeal is too narrow...to think they will sell nearly 50% more..."

Especially since there might be ~ 150 of them available on E-Bay before long.

26 posted on 10/19/2006 12:05:38 PM PDT by Seaplaner (Never give in. Never give in. Never...except to convictions of honour and good sense. W. Churchill)
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To: mvpel

It does not make sense to maintain Airbus as a jobs program is the jobs are not going to be secure and they start outsourcing to Bangladesh. The French taxpayer may be willing to shoulder the burden to keep their compatriot working in Tolouse, but he is not going to willing to shell out big bucks to keep somebody working in Dhaka.


27 posted on 10/19/2006 5:37:17 PM PDT by gridlock (The 'Pubbies will pick up at least TWO seats in the Senate and FOUR seats in the House in 2006)
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To: gridlock
The French taxpayer may be willing to shoulder the burden to keep their compatriot working in Tolouse, but he is not going to willing to shell out big bucks to keep somebody working in Dhaka.

Or on the American gulf coast if they win the Airforce tanker contest.

That may be the death of European aircraft manufacturing.

28 posted on 10/19/2006 6:16:44 PM PDT by UNGN (I've been here since '98 but had nothing to say until now)
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To: NavyCanDo
"Who the hell wants to hear actors talk anyway?" Harry M. Warner, Warner Bros. Pictures, 1927.

Sounds like old man Warner may have been correct after all. He may have been the founder of the "Shut up and sing (or act)" movement.
29 posted on 10/19/2006 7:27:19 PM PDT by JayNorth
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To: AxelPaulsenJr

The key is that the A380 wasn't built to satisy a market. Rather it was created to compensate for the Euro leaders inadequate members.


30 posted on 10/19/2006 10:32:54 PM PDT by appeal2
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