A380 break-even point raised

Seattle Post-Intelligencer ^ | May 4, 2007 3:05 p.m. | James Wallace

[Paleo Conservative]

Back when Airbus announced the new breakeven number of 420 last year, I figured the number was probably in excess of 500. I wouldn't be surprised if the real number is over 600 now.

[Paleo Conservative]

Co-CEO's Tom Enders, right, and Louis Gallois, standing,
prepare for the start of the annual shareholders meeting of
EADS, the parent of Airbus, in Amsterdam, Netherlands,
Friday, May 4, 2007. (AP Photo/Peter Dejong)

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

[FreePaul]

Airbus has currently sold 156 A380s.

And delivered how many?

[Paleo Conservative]

Zero!

[starbase]

...that the break-even point for the A380 has been raised, but he did not disclose to new figure.

That is bad! It's probably up to 2000 by now!!!!! (notice the typo in the article? "to new figure" not "the new figure")

[wastoute]

I don’t really know anything about the topic other than as a rare consumer, but I flew in an Airbus product to Latin America recently and it was my impression that the plane was “lighter” and not “as stiff” as a Boeing product. Is that just my perception?

[4rcane]

those who invested into Airbus will NEVER get their money worth. Think about it, the goal shouldn’t be to break even, the goal should’ve been to get a decent return.

Whats the point of breaking even in 20 years, when the money could’ve been better spent elsewhere where you could’ve made 100% back in 1 year, and get 10% return every year for the next 20 years in other business ventures

[diogenes ghost]

"And delivered how many?"

The same number as Boeing 787's that have been delivered.

At least it's flying.

[Don Corleone]

A380=pure Eurotrash.

[QQQQ]

Wrong!!! They delivered 1:18 scale models to every client :-)))

[Moose4]

"Sometimes I feel that the competition between the A350 and Boeing's 787 is already lost," said a woman who identified herself as Miriam Lange.

If Boeing doesn't screw the 787 up, she's probably right. Boeing is just so far ahead of Airbus right now on their widebody replacements (787 vs. A350-variation-of-the-week).

Airbus tried to guess the market, and they guessed wrong.

}:-)4

[spokeshave]

Not to self...buy some more BA stock monday.

[JohnLongIsland]

the socialist capitalism model at its finest, just like what mrs. clinton wants to do with the energy companies in this country when she is elected in 2008.

[tlb]

In an apparent effort to soothe worker anger, Airbus France said separately Friday that it had proposed a 2.5 percent salary increase and a €500 (US$680) bonus for all employees after a meeting with labor leaders.

Airbus employs 22,000 people in France, but 4,300 of those jobs are slated to be cut.

Shareholders approved a €0.12 (US$0.16) dividend at the meeting, down from €0.65 last year, and a motion allowing the company to issue new shares if need be.

But “we feel a capital increase is not necessary at this time,” Lagardere said. “We feel it’s the worst way” to raise money.

Shares in EADS, which is to publish first-quarter earnings next week, rose 0.5 percent to close at €23.27 ($31.61) in Paris.

[Moonman62]

I think the problem was Airbus didn’t even consider the market. The whole purpose of the A380 was to show that it was superior to anything the US could produce, in particular the 747. And I think that sentiment actually came from the EU, not just Airbus.

[NavyCanDo]

I think the A380 will go down in history as one of the biggest business blunders of all time. Certainly the biggest in aviation history.

[garyhope]

Betcha the “break even point” is more than they’re ever going to sell.

Wait, then that’s a loss isn’t it?

Trying to make politics and socialism triumpth over the reality of the market just ain’t gonna work Ms. Royal avec fromage.

[True Republican Patriot]

Its probably more like 2,ooo!

[Shots]

“Airbus tried to guess the market, and they guessed wrong.”

No they guessed right but designed wrong :)

[Arrowhead1952]

I think the A380 will go down in history as one of the biggest business blunders of all time. Certainly the biggest in aviation history.

I think you are correct in that assumption. This will be right up there with "The Spruce Goose" of aviation SNAFU's.