Another European aviation success story in the making.
Posted on 06/23/2006 1:01:57 PM PDT by Red Badger
Airbus has increased the sale price of its A380 superjumbo, whose problems have triggered a management crisis at parent company EADS.
Airbus said the price of all its models - including the A380 - rose two weeks ago in a standard annual increase.
The disclosure of a six-month delay to delivery of the A380 has thrown its Franco-German parent firm into turmoil.
The French government, a major investor in EADS, is under pressure to force management changes at the firm.
'Normal move'
French finance minister Thierry Breton has met with senior managers and is expected to put forward measures to rebuild confidence in the company within days.
According to the Financial Times Deutschland, the list price of the A380 - which will become world's largest airliner - rose by 4.7% to between 235.4m euros ($295.6m; £161.9m) and 251.6m euros ($316m; £173.1m) earlier this month.
The situation must be improved Michele Alliot-Marie, French defence minister
An Airbus spokesman confirmed that the price of all its models had risen but declined to comment on individual figures.
The increases were in no way connected to the costly delays to the A380, he stressed.
"Like every industry, we raise our list prices each year," he said.
Forced to scale back its A380 delivery targets for the next three years, Airbus is set to lose 2bn euros in earnings.
It is also likely to face compensation claims from airlines having to wait longer for the new aircraft.
Under-fire
Senior executives have been severely criticised for their handling of the A380's problems and the way they communicated the news to investors.
Noel Forgeard, one of EADS' two co-chief executives, is under added pressure after selling share options in March weeks before the production problems first came to light.
He has denied any wrongdoing but financial regulators are investigating movement in EADS shares in recent months.
Amid calls for the French government to increase its role in EADS, defence minister Michele Alliot-Marie said investors needed to address the firm's "structural problems".
The firm's dual management structure - consisting of two chief executives and two chairmen representing German and French interests - has been criticised as unwieldy.
"The situation must be improved," she said. "It is incontestable."
Shaking my head in disbelief.
If it costs more, it MUST be better!
Well if you raise prices, you raise revenues, right?????
LESSEE, They can't deliver the orders they have and now they're gonna charge more for the planes they can't deliver.........
This should be a documentary lesson in How Not to Run a Airplane Company......
Well, it makes sense. In socialist counties - when you need more money you just raise taxes...so why not just raise prices.
Another European aviation success story in the making.
It's difficult to make delivery when your workforce is on annual six week vacations and you can't fire the inept or incompetent, or lazy.........
when you need more money you just PRINT MORE MONEY!.......
380 is going to wind up in a museum like the Spruce Goose..... Wrong concept, wrong execution... they'll be begging for bailout just to stay afloat after the fallout from this turd is finished.
heheheheheheh
The Spruce Goose was built to prove a point and it did. The A380 is supposed to make money, and it won't.............
What the heck is that? Bristol Barbazon?
And y'know what the worst thing is about this price increase? They're not giving you the undercoating for free anymore. But they'll throw in some free "little tree" air fresheners to hang in the cockpit, so you can keep that "new plane smell" longer.
}:-)4
It doesn't matter whether it's an airline company or a widget company.
I didn't know that EADS printed money.
They might as well, they sure as hell ain't makin' any!.........
I'm shocked!
The answer is obvious - give EADS more subsidies. 1/3 of the development costs of Airbus products floated by the consortium member states is obviously not enough.
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Yes, I knowticed......
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