Posted on 09/20/2006 7:39:43 PM PDT by Paleo Conservative
EADS, majority owner of Airbus, is planning a radical costcutting at the European planemaker to offset the strong euro, replenish its earnings and restore investor confidence which has been battered by fresh delays to the A380 superjumbo.
The plans are being drawn up by Christian Streiff, the new Airbus chief executive, ...... and could see cost cuts of at least €2bn (£1.35bn) a year, including job losses and eventually moving production to plants outside Europe.
It comes as Airbus is hit by a further delay of up to six months in deliveries of the A380 planes, putting them two years behind schedule. The delay is likely to trigger a further profits warning from the EADS board next week.
In June EADS said problems with the superjumbo's wiring would hit earnings by €2bn between 2007 and 2010 and only nine planes would be delivered next year against an original plan of 25.
....
His plans are expected to involve a more radical restructuring of the entire business which could see its earnings wiped out by the remorseless rise of the euro against the dollar. Airbus sells its planes in dollars but its costs are in euros. Under Mr Streiff's plans, work that is currently shared between the main Airbus plants in Toulouse and Hamburg would be given to just one. It would involve more components, traditionally bought from European suppliers, sourced overseas to companies operating in the dollar zone.
Ultimately, it is said, output could be switched to new plants such as the factory Airbus is building in China for its A320 planes or even the US itself where the company plans to build a plant in Alabama for the air-to-air refuelling tanker plane it is offering to the Pentagon in a contract worth up to $100bn (£52bn).
(Excerpt) Read more at business.guardian.co.uk ...
I see you're living up to your screen name. LOL
LOL, exactly what I thought!
Far-fetched? Not really--there are plenty of places in the USA that could be used to set up complete A350XWB production, such as Palmdale, CA, Alliance Aiport outside Fort Worth, TX, Mobile, AL, and a few others. This type of production could even encourage the likes of United Airlines and Northwest Airlines to buy the plane for long-range flights.
Toulouse = To Lose
No doubt the Frogs will go on strike and be blocking the roads as they try to move the production to another country.
It will be great fun to watch!
I don't know about you,but they'd have to chisel the smile off of my face if this thing turns out to be commercial aviation's Edsel.
A vague resemblance to Darth Vader...
I'll bring the popcorn!
I think people might be riding the 787 before the 380. Ironic.
well if the frogs worked more than 2 hours a day and 2 days a week they wouldn't be 2 years behind schedule.
Bet you Sir Branson can get a ship in space before the Airbus starts carrying paying passengers :)
"We're DOOMED!"
Outsourcing Airbus to China, India or some such??
Iran?;-)
two years behind and Now they talk about building outside europe. Anyone got an idea on how long it would take to create an airline plant? It would have to be at least 2 years.
Yup. Right here in Mobile.
Gotta love that French Beret! :-)
Gee, I wonder if Boeing was onto something when they announced the 747-8 last November.
Sounds like a plan for Airbus.
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