Re: "Boeing sees Airbus aid ploy to build rival jet"


"Keith W" <keithspam@xxxxxxxxxxxxxxxxxxxxxxxxxxxx> wrote in message
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"Kevin Brooks" <brooksvmi@xxxxxxxxxxxx> wrote in message
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"Mike" <yared22311@xxxxxxxxx> wrote in message
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Boeing sees Airbus aid ploy to build rival jet
The Boeing Co. is anticipating that archrival Airbus soon will seek
hundreds of millions of dollars in new aid from European governments
despite a pending case at the World Trade Organization challenging such
subsidies.
at http://www.washtimes.com/business/20060629-121620-7113r.htm

Same ol' same ol'. Airbus screwed the pooch not once but twice, with the
A380 program foundering


Firm orders currenty stand at 159 before the first aircraft has even
entered
service. Current predictions are that sales will exceed 600. With the
break even
number at around 300 the phrase 'foundering' seems somewhat odd.

Not a bit odd. How has the rate of orders looked the last few months?
Dismal. The A-380 came out of the starting gate and cranked up the usual
early orders, then flatlined. It supposedly had 154 orders by the end of
2004, and has managed to inch that up to 159 during the intervening 18
months? Wow! Real impressive. Meanwhile..."Steven Udvar-Hazy, chief
executive International Lease Finance Corporation, a highly-respected buyer
and lessor of airliners has announced that his company's order for 10 A-380s
may be reduced or cancelled. "We could cancel and are considering canceling
all or some of our A380 order," he said. "We're not happy and on safe ground
to cancel the order.""

http://www.americanthinker.com/articles.php?article_id=5605

Then there is: "Malaysia Airlines is expected to cancel its A380 commitment,
according to an airline source.Speaking to ATWOnline, the source said MAS is
close to canceling its order for six aircraft. This website understands from
another source in Toulouse that at least one other airline is examining
options to cancel its order."

http://www.atwonline.com/news/story.html?storyID=5445

Another source stated that the CEO of Malaysia Airlines has refused to
answer any questions regarding the report that the A380 purchase will be
cancelled.

Both of those sources are dated this month.

So you gained five orders during the last year and a half, and are looking
at the real potential of losing sixteen in the near future, and you think it
is NOT "foundering"?? And the fact that AI is now going to be paying
substantial penalties for failure to meet its delivery schedule on the 380,
coupled with that same delivery failure meaning that expected revenues
previously forecast for this year and now deferred, further points to this
being a "foundering" program. Which is why France is suddenly talking about
renewing the subsidy program for AI...I believe Villepin stated that the
*government* would not allow AI to lose its market position?

How "current" are those predictions of your's that it will indeed reach 600?
Hell, the report noted above calls into question the ability of the A-380 to
even hit its break-even point (one former AI marketing exec has now stated
that he thinks the aircraft *may* acheive *350* orders over a twenty year
production run...). When UPS ordered its 10 A-380's last year, and took out
an option on ten more, it also at the same time cut its A300 orders from 90
to 53...now if they bail on the A380 Airbus will be in deep doo-doo, having
lost almost 40 orders for the 300 and very possibly ending up with
cancellations for the handful of 380's (or slightly less worse none of those
ten options being ordered).

One can only wonder what your definitions are for "foundering" is if you
think the A380 program does not merit that moniker.

Brooks


Keith


.

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