Posted on 05/05/2007 5:45:58 AM PDT by Paleo Conservative
Airbus said Friday it has once again raised the break-even point for the troubled A380.In 2005, Airbus was saying that it would need to sell only 270 of the planes to break even. Last year, that jumped to 420 planes as a result of costly wiring problems that delayed delivery of the A380 by up to two years.
Airbus Chief Executive Louis Gallois said Friday at the annual shareholder meeting of parent company European Aeronautic Defense and Space Co. that the break-even point for the A380 has been raised, but he did not disclose to new figure.
"Clearly because of the difficulties of the A380, the break-even point has increased," Gallois said. EADS for now isn't giving specific targets on the number of A380s it needs to sell to break even on the project, he said.
Airbus has currently sold 156 A380s.
Friday's EADS shareholder meeting was anything but peaceful after a dismal 2006.
"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.The Wall Street Journal Friday detailed the problems at EADS.
Today's annual meeting for EADS comes at a crucial time for the company, which is trying to nurse its Airbus division back to health after a series of missteps building and designing new models that dragged the plane maker to a €572 million ($777.6 million) loss last year and slashed the parent company's profit.
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)
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And delivered how many?
Zero!
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
The same number as Boeing 787's that have been delivered.
At least it's flying.
A380=pure Eurotrash.
Wrong!!! They delivered 1:18 scale models to every client :-)))
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
Not to self...buy some more BA stock monday.
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.
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.
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.
Its probably more like 2,ooo!
“Airbus tried to guess the market, and they guessed wrong.”
No they guessed right but designed wrong :)
I think you are correct in that assumption. This will be right up there with "The Spruce Goose" of aviation SNAFU's.
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