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 ...
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
HA!
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.
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.
What a cute picture! Don't you just want to scratch him behind the ears (doors)? ;)
Especially since there might be ~ 150 of them available on E-Bay before long.
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.
Or on the American gulf coast if they win the Airforce tanker contest.
That may be the death of European aircraft manufacturing.
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.
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