The plane is going to be assembled in Alabama, but the parts will be made mainly in Europe. EADS is charging $35 million more per plane, but giving a superior product.
I suspect they are going to take a bath though. With the dollar going down, it may end up costing less than what Boeing was going to charge depending on how the contract was written.
It may be that part of the way thru this contract, EADS will find it financially advantageous to move a lot of the fabrication to the Alabama facility, rather than doing it in Europe.
>With the dollar going down, it may end up costing less than what Boeing was going to charge
Unless the EAD bean counters are brain dead, any production and sales in foreign currency have FOMEX hedges against currency swings.
Of course the hedges would only be partial, and I suspect that the higher price per unit reflects that expense to EAD.
The cost changes that will be added through the change order process will equalize any of the concerns you note.