Posted on 12/04/2006 9:04:31 AM PST by Zakeet
Airbus kicked off a 10 billion euro ($13.2 billion) plan Monday to build its A350 XWB wide-bodied jet, which is designed to compete with Boeing's successful 787 and boost the fortunes of the troubled European planemaker.
CEO Louis Gallois told a news conference that the A350 will be funded through the savings generated by a painful cost-cutting plan, from cash flow and from Airbus' partners. The cost-saving plan was announced in the wake of delays to the A380 superjumbo and management turmoil that has shaken the company and its parent, the European Aeronautic Defence & Space Co.
EADS approved the A350 plan on Friday. No timetable was released, and it remained unclear where the plane will be made. Gallois said labor unions and local authorities will be informed at the beginning of 2007 of the locale.
[Snip]
EADS shares were down 1.1 percent to 22.60 euros ($29.93) in Paris trading Monday.
(Excerpt) Read more at businessweek.com ...
LOL stupid euros.
It'll take them twice as long at 5 times the cost to produce something half as good as an AMERICAN airplane.
Who cares about some eurotrash airplane.
CEO Louis Gallois told a news conference that the A350 will be funded through the savings generated by a painful cost-cutting plan, from cash flow and from Airbus' partners billion of European tax dollars.
There fixed it.
Does a cheaper dollar help or hinder Boeing? I'm thinking it will help Boeing, but am not sure.
Help and the Euros are whining about it.
Ironic that the EU's shining example of continental partnership is shaping up to be the force that re-ignites nationalistic fervor.
What if they built it in the US?
Also, this is the 350. Isn't the huge plane the 380? I'm guessing that the 350 is an established model and wouldn't carry the baggage of the 380.
No timetable? So the official launch just means the beginning of real engineering studies.
The only thing that can possibly "save" Airbus is that all of Boeing's 787 production slots are sold out until right around the time that Airbus can get the A350 out the door, so now they're competing head to head for business down the road anyway.
Aerospace Ping to Paleo.
I wouldn't dance on the Airbus grave too much. If Boeing gets back in a monopoly position it will be another 40 years before we see any innovation. Without Airbus, there would be no 787, or the lower and more comfortable travel that will result.
True enough. Boeing cannot possibly meet all the demand. Airbus will be around for some time. Competition is good.
But Boeing might start up another 787 line before then.
Yeah, right, just like the A380 was delivered to the first airlines earlier this year. Now we know full production won't start until 2010, with a small number rolling off the lines before that.
On another thread a while ago, we found out that Boeing had not one, but eight contingency plans ready in case problems with the 787 threaten to delay delivery. It looks like Airbus is just winging it by comparison.
Agreed, but my strategy would have been to forego the A350 and move to an all composite A320 instead. That would have killed demand for the 737, one of Boeing's biggest money makers. Then after launching a plastic A320, you can revisit a replacement for the A330/A340 and take advantage of what weaknesses were exposed in the 787, and another decade of engine refinement. Or take on the 777 head on with an all composite aircraft larger than the 787-1000.
Boeing's next project will be a plastic 737, which will kill the current A319-20-21 family. So Airbus will have to catch up again with Boeing in that market segment. Then Boeing will move to a composite replacement for the 777, which means Airbus will be behind yet again.
There is a difference between competition and perpetual catch-up.
Yes, the huge plane is the 380. My point was that every decision by EAD is, at heart, a political decision. So even if the 350 is viable, infighting between the "partners" will doom the project as far as competition to Boeing goes. The 380 created the rift. It can only grow because that what socialists do.
That's the position Airbus will be in for some time. They bet on the 380 - which had more to do with anti-American envy than market forces.
On the other hand, Boeing may well have it's own problems with the 787, which is even more radical than the 380.
You are almost correct. You should have said: "There is a difference between innovation and perpetual catch-up."
This has been Airbus' problem for some time now. The last innovative airplane Airbus built was the A320, and perhaps the A330. The A340 was a good idea, but Airbus failed to anticipate the move to big twins for international routes. Boeing made its own future by betting on big twins with the 777, and making it happen by driving the 180 minute ETOPS certifications.
As a result, early model A340-200s and A340-300s are headed the way of the MD-11 (to charter and cargo conversions), and the later model A340-500s and A340-600s have become niche players, the 747SPs of the 2000s, destined for southern hemisphere routes where ETOPS is insufficient.
When an airline can save money in fuel and support costs by replacing a brand-new A340-600 with a Boeing 777-300ER, Airbus has a problem. Boeing has even been able to raise their prices on the 777s recently.
Then there is the A380 fiasco.
The A320s are the only thing sustaining Airbus right now. It is a good airplane, but it is also Airbus' economic center of gravity. And Boeing can pound them on price with their 737s.
Airbus is chasing Boeing's sloppy seconds with the A350XWB. And they may be forced to do it again with their A320 replacement, if Boeing strikes first.
More on my take of Airbus' current crisis here. See later posts for my opinions on what Boeing's next step should be.
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