A380 Issues
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I just returned from a business trip to France.
French mainstream media is very very quiet about this Airbus mess. One thing that was shown was a brief interview clip of an Airbus worker's union rep who complained that Airbus asked their employees to work more to make up for the A380 delay. He said that any more pressure from Airbus would actually be counter-productive and might even result in a strike.
Now that's all Airbus would need: a strike. That would really be the last nail on the coffin.
A few questions need to be asked though:
- Was the A380 program motivated by pride or by sound business judgment?
- Although European in nature, the French play a huge part in EADS. The problem with the French is well known. Can the French be trusted by airlines worldwide? I'm talking about work ethics here.
French mainstream media is very very quiet about this Airbus mess. One thing that was shown was a brief interview clip of an Airbus worker's union rep who complained that Airbus asked their employees to work more to make up for the A380 delay. He said that any more pressure from Airbus would actually be counter-productive and might even result in a strike.
Now that's all Airbus would need: a strike. That would really be the last nail on the coffin.
A few questions need to be asked though:
- Was the A380 program motivated by pride or by sound business judgment?
- Although European in nature, the French play a huge part in EADS. The problem with the French is well known. Can the French be trusted by airlines worldwide? I'm talking about work ethics here.
Psychophysiological entity
Since the Spruce Goose?....The Brabazon comes to mind.
Get the bit about the wing-span, 35' more than a 74.
http://unrealaircraft.com/classics/brab.php
Get the bit about the wing-span, 35' more than a 74.
http://unrealaircraft.com/classics/brab.php
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Rumour in Monaco this weekend @ ISTAT is the Dreamliner will soon be announcing a 6 to 12 month delay. We can couple that with the experience of Boeing in the same position four years ago as Airbus and prefering not to blow their own horn now. He is going to Peugot we were told in a bar, but its a rumour network right ??
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11fan.. Four years before Bill was in trouble, now he riding high, fine... why is he not going for the kill on the 380 ??? even with the latest delays. Contract engineering and manafacturing outsourcing of an airframe is the norm...ish and has its pit falls. This leaves the manafacturer at the mercy of the outsourcing contracts that were probably signed with the best intentions, but no real capability to deliver.
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Trim-run
Perhaps I am missing the point, and if so, my apologies. The way I understood your post (and not to put too fine of a point on it) sounds a little more like what happened in the 1997-98 time frame where Boeing assembly lines in Everett and Renton had to shut down for weeks because of parts shortages.
That being the case, may I suggest that the roles may be reversed this episode.
For instance…
http://business.timesonline.co.uk/article/0,,9067-2392263,00.html
Nevertheless, and as I have suggested in other posts, it's not really sportsmanlike to kick the other guy when he is down. The shoe could just as easily be on the other foot, and payback… well, you get the idea.
Besides, there's this glass house and stones thing that comes to mind.
Anyway, I am confidant that Airbus will fight their way back and I am looking forward to seeing an A380 on final to LAX. A pair of Qantas 747-400's pass overhead each morning. If they put the A380 on that route, it's going to be a pretty sight to see.
Regards,
11Fan
Perhaps I am missing the point, and if so, my apologies. The way I understood your post (and not to put too fine of a point on it) sounds a little more like what happened in the 1997-98 time frame where Boeing assembly lines in Everett and Renton had to shut down for weeks because of parts shortages.
That being the case, may I suggest that the roles may be reversed this episode.
For instance…
http://business.timesonline.co.uk/article/0,,9067-2392263,00.html
Nevertheless, and as I have suggested in other posts, it's not really sportsmanlike to kick the other guy when he is down. The shoe could just as easily be on the other foot, and payback… well, you get the idea.
Besides, there's this glass house and stones thing that comes to mind.
Anyway, I am confidant that Airbus will fight their way back and I am looking forward to seeing an A380 on final to LAX. A pair of Qantas 747-400's pass overhead each morning. If they put the A380 on that route, it's going to be a pretty sight to see.
Regards,
11Fan
Psychophysiological entity
NY Times snippet
PARIS, October 7 — Airbus, which is struggling with delays and cost overruns in the production of its A380 superjumbo jet, was caught in the awkward position late Friday of having to deny media reports that its new chief executive has resigned.
The executive, Christian Streiff, had just joined the company in July to turn the plane manufacturer around.
PARIS, October 7 — Airbus, which is struggling with delays and cost overruns in the production of its A380 superjumbo jet, was caught in the awkward position late Friday of having to deny media reports that its new chief executive has resigned.
The executive, Christian Streiff, had just joined the company in July to turn the plane manufacturer around.
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Accodring to this Bloomberg article , the problem is largely caused by incompatible CAD software used in German and French offices. This made it nearly impossible to propagate changes made by the German team to the French virtual mock-up and vice versa, and so there were several different design versions in use simultaneously.
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This has been on the Beeb website since this morning (http://news.bbc.co.uk/1/hi/business/6033063.stm):
Reports say Airbus boss may quit
Mr Streiff is said to want more funds to turn around the A380 project
Shares in aerospace group EADS fell 1.5% on Monday, amid speculation that the head of its troubled Airbus subsidiary is planning to resign.
Reports say Airbus chief executive Christian Streiff wants to stand down in a row over how much money the firm needs to recover from major delays.
With its A380 superjumbo now put back by two years, Mr Streiff is said to want more cash to tackle the matter.
Airbus has denied that Mr Streiff is to leave the company.
EADS said the reports of his imminent departure were simply speculation.
French backing
French Prime Minister Dominique de Villepin defended Mr Streiff at the weekend, saying he saw no reason for him to resign.
The A380 has become a major problem for Airbus
Mr Villepin said Mr Streiff was "doing tremendous work".
The opinion of the French government is important, because it owns 15% of shares in Franco-German EADS.
Mr Streiff became head of Airbus in July, after the planemaker first informed customers that deliveries of the new A380 would be delayed because of a wiring problem.
The German edition of the Financial Times said on Monday that if Mr Streiff resigns he is likely to be replaced by EADS co-chairman Louis Gallois.
It speculated that Mr Gallois would continue in both jobs.
The development of the A380 has been blighted by delays.
Airbus has sold 159 of the $250m (£134m) jets to 16 airlines, many of whom are already demanding penalties for late delivery.
The airline currently plans to cut $2bn in costs from 2010 onwards, a move that has caused concerns in France, Germany and the UK, where the bulk of its manufacturing operations are located.
"Christian Streiff" - appropriate name...
Reports say Airbus boss may quit
Mr Streiff is said to want more funds to turn around the A380 project
Shares in aerospace group EADS fell 1.5% on Monday, amid speculation that the head of its troubled Airbus subsidiary is planning to resign.
Reports say Airbus chief executive Christian Streiff wants to stand down in a row over how much money the firm needs to recover from major delays.
With its A380 superjumbo now put back by two years, Mr Streiff is said to want more cash to tackle the matter.
Airbus has denied that Mr Streiff is to leave the company.
EADS said the reports of his imminent departure were simply speculation.
French backing
French Prime Minister Dominique de Villepin defended Mr Streiff at the weekend, saying he saw no reason for him to resign.
The A380 has become a major problem for Airbus
Mr Villepin said Mr Streiff was "doing tremendous work".
The opinion of the French government is important, because it owns 15% of shares in Franco-German EADS.
Mr Streiff became head of Airbus in July, after the planemaker first informed customers that deliveries of the new A380 would be delayed because of a wiring problem.
The German edition of the Financial Times said on Monday that if Mr Streiff resigns he is likely to be replaced by EADS co-chairman Louis Gallois.
It speculated that Mr Gallois would continue in both jobs.
The development of the A380 has been blighted by delays.
Airbus has sold 159 of the $250m (£134m) jets to 16 airlines, many of whom are already demanding penalties for late delivery.
The airline currently plans to cut $2bn in costs from 2010 onwards, a move that has caused concerns in France, Germany and the UK, where the bulk of its manufacturing operations are located.
"Christian Streiff" - appropriate name...
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http://news.bbc.co.uk/1/hi/business/6035357.stm
Airbus parts company with Streiff
The chief executive of troubled plane maker Airbus has resigned following a day of speculation that he was to go.
Christian Streiff is to be replaced by Louis Gallois, co-chief executive of Airbus parent company EADS.
Mr Streiff had been trying to push through reforms to recover from major delays in the production of the Airbus A380 superjumbo.
He took over as CEO in July, replacing Gustav Humbert who was ousted along with EADS co-CEO Noel Forgeard.
Mr Gallois is a former head of French state railway company SNCF.
He will combine the top job at Airbus with his current role as joint head of the Franco-German defence group EADS.
Wiring problems
Outgoing Mr Streiff, 52, had been a former executive of French building materials group Saint-Gobain.
With its A380 superjumbo now put back by two years, Mr Streiff was said to want more cash to tackle the matter.
Mr Gallois was formerly head of SNCF
French Prime Minister Dominique de Villepin defended Mr Streiff at the weekend, saying he saw no reason for him to resign.
Then, Mr Villepin said Mr Streiff was "doing tremendous work".
The opinion of the French government is important, because it owns 15% of shares in Franco-German EADS.
The development of the A380 has been blighted by delays.
Airbus has sold 159 of the $250m (£134m) jets to 16 airlines, many of whom are already demanding penalties for late delivery.
The airline currently plans to cut $2bn in costs from 2010 onwards, a move that has caused concerns in France, Germany and the UK, where the bulk of its manufacturing operations are located.
Airbus parts company with Streiff
The chief executive of troubled plane maker Airbus has resigned following a day of speculation that he was to go.
Christian Streiff is to be replaced by Louis Gallois, co-chief executive of Airbus parent company EADS.
Mr Streiff had been trying to push through reforms to recover from major delays in the production of the Airbus A380 superjumbo.
He took over as CEO in July, replacing Gustav Humbert who was ousted along with EADS co-CEO Noel Forgeard.
Mr Gallois is a former head of French state railway company SNCF.
He will combine the top job at Airbus with his current role as joint head of the Franco-German defence group EADS.
Wiring problems
Outgoing Mr Streiff, 52, had been a former executive of French building materials group Saint-Gobain.
With its A380 superjumbo now put back by two years, Mr Streiff was said to want more cash to tackle the matter.
Mr Gallois was formerly head of SNCF
French Prime Minister Dominique de Villepin defended Mr Streiff at the weekend, saying he saw no reason for him to resign.
Then, Mr Villepin said Mr Streiff was "doing tremendous work".
The opinion of the French government is important, because it owns 15% of shares in Franco-German EADS.
The development of the A380 has been blighted by delays.
Airbus has sold 159 of the $250m (£134m) jets to 16 airlines, many of whom are already demanding penalties for late delivery.
The airline currently plans to cut $2bn in costs from 2010 onwards, a move that has caused concerns in France, Germany and the UK, where the bulk of its manufacturing operations are located.
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I am not sure why people seem to think that this is so momentous a decision - with just in time production, it makes no sense to produce something that ultimately requires storage and warehousing costs, tying up working capital. We know that the A380 is still delayed, and RR have surely reached a point where they are confident that staff and resources are better used elsewhere for a year or so.
There must be thousands of Tier 1, 2 and below suppliers who have made the same decisions!
There must be thousands of Tier 1, 2 and below suppliers who have made the same decisions!
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Emirates threatens to cancel some A380 orders
Emirates May Cancel Some A380 Orders
Friday October 13, 6:17 am ET
Dubai-Based Airline Emirates Says It May Cancel Some A380 Orders if Further Delays Arise
SINGAPORE (AP) -- The president of Dubai-based airline Emirates said Friday the carrier could cancel some of its Airbus A380 orders if there were more delays beyond those already announced by the European aircraft maker.
"If there is a further delay -- our first delivery is now set for August 2008 -- there may be cancellations down the line," Tim Clark told Dow Jones Newswires in an interview Friday.
"We cannot wait forever but at this point there is nothing that comes close to the A380 as far as seat capacity" is concerned, Clark said.
Clark said Emirates, which with an order for 43 of the aircraft is the biggest customer for the superjumbo, is "angry" with the Toulouse, France-based Airbus but is sticking with the plane for now.
"I hope Airbus puts their house in order," he said. "We have invested a lot in ground facilities so we have to stick with the order for now."
Airbus earlier this month said the highly anticipated launch of the A380 would be delayed for another year.
The latest production holdups, which leave the A380 program two years behind schedule, were caused by problems with the installation of the 300 miles of wiring aboard each plane. Airbus has received 159 orders for the world's largest passenger jet from 16 customers.
Clark said Emirates may order five to seven of the 777-300s made by Boeing Co. to make up the capacity shortfall caused by the A380 delay. He said the airline hasn't discussed compensation with Airbus yet.
Friday October 13, 6:17 am ET
Dubai-Based Airline Emirates Says It May Cancel Some A380 Orders if Further Delays Arise
SINGAPORE (AP) -- The president of Dubai-based airline Emirates said Friday the carrier could cancel some of its Airbus A380 orders if there were more delays beyond those already announced by the European aircraft maker.
"If there is a further delay -- our first delivery is now set for August 2008 -- there may be cancellations down the line," Tim Clark told Dow Jones Newswires in an interview Friday.
"We cannot wait forever but at this point there is nothing that comes close to the A380 as far as seat capacity" is concerned, Clark said.
Clark said Emirates, which with an order for 43 of the aircraft is the biggest customer for the superjumbo, is "angry" with the Toulouse, France-based Airbus but is sticking with the plane for now.
"I hope Airbus puts their house in order," he said. "We have invested a lot in ground facilities so we have to stick with the order for now."
Airbus earlier this month said the highly anticipated launch of the A380 would be delayed for another year.
The latest production holdups, which leave the A380 program two years behind schedule, were caused by problems with the installation of the 300 miles of wiring aboard each plane. Airbus has received 159 orders for the world's largest passenger jet from 16 customers.
Clark said Emirates may order five to seven of the 777-300s made by Boeing Co. to make up the capacity shortfall caused by the A380 delay. He said the airline hasn't discussed compensation with Airbus yet.
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I wonder to what extent Airbus could have limited the damage from all this by simply communicating effectively with its customers, rather than leaving them entirely in the dark over what's been going on.
Some of the issues facing the A380 are at least understandable. The way the company appears to deal, or indeed fail to deal, with its customers is not.
Anyway, I for one hope Airbus can dig itself out of this hole.
Some of the issues facing the A380 are at least understandable. The way the company appears to deal, or indeed fail to deal, with its customers is not.
Anyway, I for one hope Airbus can dig itself out of this hole.
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I think Clark's point is that they're effectively stuck with it - he's telling Airbus that if they (Emirates) hadn't spent so much in infrastructure, they'd have already pulled the order, but there comes a point where the cost equation goes the other way.
What it does do, is explain why the order book has largely stalled - those carriers which can afford the non-airframe spend have already signed up; those that can't, haven't. Hence it seems to me that further orders (or lack thereof) have less to do with the cost of the aircraft itself than with related costs.
That said, it does seem curious that the spend already made on making things A380-ready, could not be applied to other large aircraft (748??) (clearly other than things like sims and cabin training mock-ups). One wonders how many A380 sims EK must have ordered already... and if any are already in Dubai?
What a mess.
What it does do, is explain why the order book has largely stalled - those carriers which can afford the non-airframe spend have already signed up; those that can't, haven't. Hence it seems to me that further orders (or lack thereof) have less to do with the cost of the aircraft itself than with related costs.
That said, it does seem curious that the spend already made on making things A380-ready, could not be applied to other large aircraft (748??) (clearly other than things like sims and cabin training mock-ups). One wonders how many A380 sims EK must have ordered already... and if any are already in Dubai?
What a mess.
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100% EADS Airbus
"Amsterdam, 13 October 2006 – EADS today acquired from BAE Systems its 20 percent stake in Airbus for € 2.75 billion. This value was determined by an independent expert during the put option process which was launched by BAE Systems in June 2006. EADS paid in cash from the existing resources of the Group. EADS is therefore now the sole owner of Airbus."
Well, it's about time - get it all under one umbrella at a bargain-basement price. Now, how do we pay for the assets?!?
Cheers, y'all.
Well, it's about time - get it all under one umbrella at a bargain-basement price. Now, how do we pay for the assets?!?
Cheers, y'all.
