A-I mulls suit against Airbus

Financial Express Bombay India ^ | April 30, 2005 | Sanjay Jog

[wk4bush2004]

ABU DHABI, APRIL 29: Air-India (A-I) has sought legal opinion to file a suit against Airbus for its outburst against the former’s decision to award a contract to Boeing for the purchase of 50 aircraft for an investment of Rs 30,000 crore.

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A-I has taken strong objection to Airbus’ complaint that the A-I board cleared the Boeing deal without referring it to the Comptroller & Auditor General of India and Chief Vigilance Commissioner.

A-I may file a defamation suit against Airbus for questioning its wisdom, expertise and knowledge for the selection of an aircraft supplier, according to observers tracking these developments.

“A-I has already taken strong objection to Airbus’ complaint and has sent out a letter in this regard to GoI seeking its nod for going ahead on this front. The A-I board, which cleared the Boeing deal last week, has already taken a decision that it would be sent to the Comptroller and Auditor General and Chief Vigilance Commissioner,” said said A-I CMD V Thulasidas.

[Prophet in the wilderness]

AirRUST, the Euros and the America haters were all giddy about Boeing's lack of sales in the passed few years, and giddy about the 747's all but dried up sales ( not for long, and when Boeing introduces the new 747 Advanced, it will have a impact on the Aflop-380 sales ) in the last 2 years.
And we can take a good guess, that the airlines will jump on the bandwagon for the more fuel efficient models of Boeing's product lines, and have a windfall when the oil prices come down at the end of this summer to $ 35 a barrel.
The oil crunch could not have come at a better time for Boeing, since it was one ( the major reason ) of the reasons the Airlines are jumping on the bandwagon for Boeing's 787 product line.
lol..... AirRUST sunk all that money into the AirRUST Aflop-380, and AirRUST's other product lines are not selling well.

[Prophet in the wilderness]

When you are always trying to keep up with the JONES and try to maintain a " IMAGE " it's a hollow foundation to build upon.
With AirRUST, EUROS, and the EU with this project, it's all about IMAGE, PRESTIGE, and PRIDE.

[Prophet in the wilderness]

In other words, what you mean is ?
As time goes on, the delay in the first flight, and possibly the Launch of the 747 advanced ( this will take away some sales alway from the Aflop-380, and those airlines who might cancel their orders of the Aflop-380 who have not put a deposit on the aflop-380 ) that as the weeks and months go by, the bar or the point were they have to break even and survive with this project without having to go bankrupt is ever increasing and moving up.
I can only guess , but, I think, they have only have 190 confirmed orders for the Aflop-380.

[Old Professer]

Shoot, I thought this was going to be about airplane food.

[longtermmemmory]

sorry did not mean to imply that you did.

my personal opinion is that airbus is less about airplanes and more about being a "make jobs" socialist program.

[DennisR]

And you would be totally right. The way I understand it, after 9/11 - when the airline industry got hammered - Airbus (as opposed to Boeing) continued their production as if nothing even happened. Because they do not need to make a profit - they just need the jobs. It is really pathetic.

[DennisR]

Bingo. I will do anything possible to avoid flying on Airbus planes.

[RayChuang88]

I think the airlines are finding out that the A330 is too big a plane for anything other than routes over 1,500 nautical miles in length. They want a widebody plane capable of fly routes between 800 to 2,000 nautical miles in length on a fairly high frequency basis.

The A300B, A310 and 767 fleets are now rapidly aging, and many airlines are clamoring for a replacement; the 787 fulfills that need perfectly.