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Europe
Airbus raises price of A380 plane
2006-06-24
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.
Typical Y'urp-peon socialism -- deliveries are delayed, demand has cratered, so let's raise the price!
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. 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. 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.
"Whether the market lets us or not!"
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.

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."
"Therefore, we shall remove the German executives," she added. "This will solve the problem according to us, no?"
Posted by:anonymous2u

#14  Oh the humanity!
Posted by: Les Nessman   2006-06-24 18:46  

#13  Via Lucianne:

Boeing steps up rollout of 787s
By Dominic Gates

Seattle Times aerospace reporter
Posted by: anonymous2u   2006-06-24 18:02  

#12  1)...What do you do, passenger wise, when one of these 800 person flights is canceled?

Typical passenger configuration for the A380 is 550, compared to 416 for the 747-8. Not a big deal.

2) If one ever goes down...the operator (airline) is going to face massive law suits because of scope. Couple this with news of quality problems and you've got a major problem.

Airlines are usually well protected with specific laws and treaties or contracts. As well they should be. The industry isn't entirely risk free, obviously.

You'll see it only for trans-national ocean crossings.

It's meant primarily for the Asian market and some US destinations.

Besides, regional jets are exploding around the globe, smaller and more flexible will probably win.

except that the 380 isn't competing in the regional market.

From an aeronautical point of view the 380 is a great aircraft and I hope it becomes successful like the 747 before it. Interestingly, it's not that much bigger than the 747-8 span-wise and length-wise.
Posted by: Phurt Crolumble4105   2006-06-24 17:41  

#11  The A380. Soon to be the worlds largest water bomber...
Posted by: tu3031   2006-06-24 17:34  

#10  "As God as my witness, I thought turkeys could fly."

I think that's how it goes.

That episode STILL brings tears to my eyes I laugh so hard.
Posted by: anonymous2u   2006-06-24 16:04  

#9  Turkey? I thought it was a vulture and it made me laugh out loud. Oh well, same, same.
Posted by: 2b   2006-06-24 15:07  

#8  The American Turkey came within one vote of being a German speaking bird.
Posted by: 6   2006-06-24 14:46  

#7  I'd rather have that turkey in the picture.

Brine and smoke - mmmmmmmm.

Better than an Airbus any day.
Posted by: no mo uro   2006-06-24 14:19  

#6  Yes, they are sorta/kinda expected to turn a profit--but only until pursuit of profit conflicts with vainglorious French industrial policy. Which is why BAE and Daimler-Chrysler are looking to reduce their equity stakes in Airbus. BAE is planning on getting out altogether.
Posted by: Classical_Liberal   2006-06-24 13:44  

#5  I know that they are heavily subsidized, but aren't they sorta/kinda expected to turn a profit? Or am I just being a silly American when I say stuff like that?
Posted by: Swamp Blondie (formerly) Desert Blondie   2006-06-24 13:25  

#4  There are two problems with A380 which make it a castastrophe in the waiting.

1) Logistics, and not what is usually mentioned here regarding runways and gates, but furhter. What do you do, passenger wise, when one of these 800 person flights is canceled?

2) If one ever goes down, and I hope not, the operator (airline) is going to face massive law suits because of scope. Couple this with news of quality problems and you've got a major problem.

Each of these will cause horrible press, long litigations, and a worry from the operators once either occurs for the first time.

Add rising fuel costs and you've got a logistic nightmare for the operators. I suspect A380 will not penetrate as far as the PR from Airbus over last 5 yeast has indicated.

You'll see it only for trans-national ocean crossings.

Besides, regional jets are exploding around the globe, smaller and more flexible will probably win. When you can go down to local airport, pay $50 for an air-taxi ride, that will kill A380.
Posted by: bombay   2006-06-24 12:32  

#3  Comedy gold.
Posted by: Seafarious   2006-06-24 11:44  

#2  Priceless: "Like every industry, we raise our list prices each year," he said.

At the price I paid for my TV last year, I can get a new, larger, better model today. Same with the computer I bought 18 months ago. Same with the car I bought two years ago. Same goes for microwave ovens, fridges, skis, light-bulbs, train engines, medical devices, ...
Posted by: Kalle (kafir forever)   2006-06-24 11:40  

#1  
The A380 is a catastrophe waiting to happen, there is no way I would set foot on the thing.

-M
Posted by: Manolo   2006-06-24 11:08  

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